Written by Christopher Nye,
5th November 2018

Can you picture anything more idyllic than living beside the water? Being lulled to sleep every evening by the waves calmly lapping on the shore. Waking up with a quick dip in your own private patch of lake or river. While it may sound like dreamy, the reality of owning waterfront property can prove decidedly more tricky. Setting up shop so close to Mother Nature means exposure to elements that will affect your property over time. Plus, there are an extensive array of rules and regulations to get your head around that don’t apply for normal properties. Before you slap down that deposit, you need to know exactly what you’re getting yourself into. Here are some need-to-knows for buying waterfront property.

Is the property right for you?

While it’s very easy to be blown away by sensational views from a bedroom window, you need to back away from that vista and think carefully and objectively about whether the property is perfect for you. Ask yourself how you want to use your waterfront property, and then set about establishing whether it will deliver on those deal breakers. For example, if you want to be able to swim every day, you need to establish whether the it is safe to do so for you and your family. Are there tides or currents you need to be aware of? Are there restrictions on which parts of the lake people can swim in? If you dream of mooring your yacht at the end of your dock, is the dock even strong enough to do so, and how much will that cost? You need to make sure that the waterfront property meets your needs before making a commitment.

Ask yourself how you want to use your waterfront property, and then set about establishing whether it will deliver on those deal breakers.

A waterfront property is a dream come true for many of us, but it is important to consider practicalities too.

A waterfront property is a dream come true for many of us, but it is important to consider practicalities too.

Do your research

Owning property on the water comes with a unique set of challenges and risks you need to educate yourself on. Of course, being located beside water makes your home more at risk of exposure to natural disasters – hurricanes, high-tides, storm surges and so on. Additionally, the property is more exposed to the elements than properties located away from the water, which means more general wear and tear. Shorelines move, river rise and fall, cliffs erode. You should research this and speak to experts about how the property is likely to fare over time. Owning waterfront property also means higher insurance and maintenance costs. Also, there may also be permits you need to factor in to your budget. It’s very easy to forget these matters when the sun is shining and the house is primed and ready for viewings. You need to do your research to fully understand what you’re taking on.

Call in the experts

While water is easy on the eyes, it’s not so easy on the properties located beside it. Before you make any decisions, call in the experts. Start by seeking a real estate agent who specialises in waterfront properties, so that you can tap into what they know about what owning this time of home involves. Any agent worth their salt should be a veritable fountain of knowledge. Likewise, find a surveyor who is au fait with checking for matters you might not need to with normal land-based properties; water-quality, elevation levels, subsidence, mildew and mould, moisture levels and so on.

In the last twelve months, a €300,000 property would have changed value in sterling by almost £15,000 due to sudden exchange rate changes. No-one can predict where the rates are heading, but you can protect your budget. Find out how in the free Property Buyer’s Currency Guide.

If you are right on the water, it might be worth consulting a geo technical engineer who can assess the shoreline and establish how you will need to maintain it moving forwards. Always seeks the advice of your potential new neighbours too. Go knocking, and ask for insight on what it’s really like to live beside the water. Chances are they will open your eyes to matters you may not have considered while you were busy daydreaming about spending sunny afternoons on your new deck.

Consider liabilities and hidden costs

As the owner of waterfront property it’s likely to be your responsibility to maintain your stretch of natural coast, barrier wall or bulkhead. This can end up being pricey, especially on top of higher-than-average costs for repairing wear and tear of the property, insurance and costs associated with docking boats. Water and sewerage rates can be higher for waterfront properties, especially when they’re isolated. Sit down and list out all of the possible costs associated with owning – is it still within your budget?

Make sure to check local planning laws when modifying a waterfront property.

Make sure to check local planning laws when modifying a waterfront property.

Are you restricted?

Before you buy what you think might be the property of your dreams, check what permissions you have to renovate or build on the land. Local councils or municipalities often impose strict regulations on waterfront properties and what you can do with the surrounding land; height-restrictions, how close to the shoreline you’re able to build, what types of building materials you’re allowed to use and so on. If you wish to build or renovate your property, it’s highly likely you’ll need to secure a permit. It’s worth double-checking your renovation dreams are possible before you buy to avoid disappointment and frustration later down the line.

Before you buy what you think might be the property of your dreams, check what permissions you have to renovate or build on the land.

Additionally, those buying in a different country from where they reside need to check there’s no restrictions on them buying waterfront property, or whether it’s a possibility at all. In Spain for example, their Spanish Coastal Law restricts private ownership along particular stretches of coastline. Often foreign buyers are restricted from buying within a certain distance from the coast. However, there are often ways to side-step these rules by setting up limited companies (Thailand), or buying a land trust (Mexico). Also, in some places, Belize, Brazil and Ecuador for example, you will have to gain municipal approval to buy waterfront property.

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