Waterfront properties are always a hot topic during the summer rental season. As we investors take our vacations and see waterfront homes for sale, we often wonder, “why am I renting when I could own my own lake house?”
Owning and renting waterfront property has meaningful overlap with the residential rental property business, but has many unique aspects as well. Furthermore, the COVID-19 pandemic has created a very unusual environment for those searching for vacation homes for sale. Mashvisor is your go-to resource in the bulk of your business, and we can also help you find waterfront properties for sale in Florida, Texas, Indiana, or any state. We can help you find and evaluate waterfront homes for sale in 2021 despite the market disruption. We won’t hold back the other side of the story. Here are both the pros and the cons.
Related: When Is the Best Time To Buy a Lakehouse?
Top Reason To Buy Waterfront Property In 2021 – 2022 Could Be A Tougher Year
“They’re not making any more waterfront,” as the saying goes. Sure, the market is at an all-time high, but it is in most years. Those looking for beachfront property for sale in 2021 will have options, just not as many. If you don’t jump into the real estate market now, when will you? If you answer “in a later year,” there is no guarantee the inventory or price points will look any rosier. Get in now, and start your business as soon as practical.
Related: Is the 2021 US Real Estate Market a Buyer’s Or Sellers Market?
Reason Two Why Buying Waterfront Property Makes Good Sense in 2021 – Time For Work
Now mid-season, if you purchase waterfront property now the closing will not be until after the summer season has come and gone. That is not bad news. It means that you will have the off-season to perform any needed maintenance and repairs. There is simply no contractor capacity available right now and materials are pricey and scarce. Starting in the fall is not the wrong time, but rather the right time.
Related: The Ultimate Guide To Buying an Airbnb Rental Property With Ease
Reason Three To Buy Waterfront Property in 2021 – Timing
Although finding a good lakefront or ocean-front property for sale is the biggest challenge, it is not the only challenge. Whether you rent via Airbnb or weekly rental periods, your business needs to become established. That means creating your image portfolio, learning how and where to list the property for rent, and time to handle the important back-office side of your new property business. Having the luxury of the fall and winter to get that squared away is a blessing in disguise.
Reason Four To Buy Lakefront or Ocean Property Right Now – See What You Are Buying In all Its Glory
If you start your search in early 2022, you won’t be able to see your perspective lake or ocean-front property in all its glory. How can anyone properly evaluate a summer-focused rental with snow on the ground and the lake frozen over? By shopping now you will see the lakefront rental property the way that your future renters will see it. You may even score some great images that you might otherwise not be able to get before next year’s season begins.
Related: What You Should Know About Investing In Lakehouse Rentals
Biggest Reason Not To Buy Waterfront Property in 2021 – Market Conditions
The biggest reason not to buy waterfront property in 2021 is that the market is presently at an all-time high price-wise, and an all-time low inventory-wise. If a great rental property presents itself at fair market value – jump on it. Mashvisor’s Property Finder can help you expand your search area either locally or nationally, but many waterfront Airbnb or short-term week-long vacation rental property owners live nearby their units. While it is true that there is no guarantee the market will ever soften with regard to price, it is also true that the market usually does.
Second Reason Not To Buy Waterfront Rental Property In 2021 – What’s the Catch?
When I bought my waterfront property in 2019 the prior owner was ill and had to sell. That was a very good reason for him to do so. However, short of a health emergency or overdue retirement, who is selling any decent vacation property in 2021 of any type? Bookings are at 100%, the rent rates are through the roof, and renters are lined up to snatch any surprise availabilities. We’d wonder why a unit was for sale in this climate and look for hidden problems.
Third Reason Not To Buy – The Classic Reasons
The fact is, all waterfront properties have unique challenges. Just getting reliable water and sewer is always tricky with waterfront property. Permitting for renovations and upgrades is almost impossible in normal years. Waterfront properties are a bear to maintain and repair. The environmental groups local and state-wide view you as the enemy and your neighbors will rat you out if you dare to fix anything, never mind upgrade the property. Be sure you know what you are getting into unless your property is basically already updated.
Fourth Reason Not To Buy In 2021 – Zero Contractor Availability
I tip my contractors. In many cases, I pay more than the agreed-to price by rounding invoices like $967 to an even $1,000. I send my contractors holiday cards and I keep in touch with them if I know they have personal challenges I may be able to help with. And I still can’t get anyone to work on my lakefront property in 2021.
The capacity is so overburdened due to the past 18-month shutdown that new work is not bookable right now. If you buy in 2021, don’t expect needed repairs in the fall unless you are already a customer. Some HVAC contractors are booking installs and upgrades into late 2022 already.
Mashvisor has the tools you need to find, evaluate, and analyze waterfront vacation rental property. If you need a heatmap showing the best places to start looking, or if you are already at the point where you need a vacation rental income calculator, we can help you today. Joining Mashvisor is easy. Sign up now to see how our tools can help you make your dream of owning a waterfront vacation property a reality.