Real estate investments are a tricky business. So many different options to choose from, each of which has pros and cons. That’s why you need to think carefully about your next move and make sure you do the right thing at the right time for your situation. When it comes to waterfront properties, there are so many great things about them. Overlooking a body of water, you can have an amazing property that will be able to help you relax any time you come home. However, the big question is – should you rent or buy a waterfront property? Even though homeownership is a dream of many, there are responsibilities and risks to think about. Also, renting isn’t always as simple as it seems at first. This guide will point out the main things you should consider about each decision so that you can make the right choice.
Renting a waterfront property – what’s to know?
Let’s discuss being a tenant before owning a property. Renting a waterfront property has clear benefits:
Less responsibility than homeownership – Renting a waterfront property means you don’t have all the responsibilities of taking care of the property. Landlords are responsible for regular maintenance and repairs, which can be pretty relieving as waterfront properties often require special care.
More predictable costs – It’s true that your landlord can raise the rent, but most of the time, your monthly fees are the same. This predictability can help you plan the rest of your expenses better. Furthermore, renting is often cheaper than owning a home, which is another factor to consider.
Flexibility – Renting is perfect for people who don’t want to make long-term plans in one location only. Renting gives you the flexibility to move according to your lifestyle and budget changes, and avoid the process of selling the property. Experience of the orangemover.com team shows that renting makes moving a lot easier, as you’re less dependent on the location. This is great for moving for work or simply enjoying a more nomad-like lifestyle.
Are there any cons?
Renting a home comes with a set of downsides as well. Even though these don’t need to be the ones to divert you from your decision, it’s also important to be aware of the cons. Here are some drawbacks of being a tenant compared to being a homeowner.
You don’t make the rules
Probably the biggest disadvantage is that you’re not the one who makes the rules about different things in the property, such as pet policy, renovations, etc. As a renter, you need to follow the rules and guidelines of your landlord, which can be an issue if you’re moving with your pet, for example.
There’s no building equity
As renting is not actually an investment in your own assets, you miss building equity. You’re investing in someone else’s property and you will pay off your landlord’s mortgage instead your own.
No sense of stability
When you rent a property, you are living in someone else’s home. This can be difficult for people longing for a sense of stability and looking for a way to settle down.
Homeownership – what’s to know about owning a waterfront property?
It’s okay not to be sure whether you should rent or buy a waterfront property. This is a significant investment, and if you’re a first-time buyer, the whole process can seem a bit overwhelming. Here are some advantages of investing in a property overlooking a body of water.
Long-term commitment to a glorious location
It is indeed a long-term relationship and responsibility, but owning a waterfront property is actually a privilege. Living close to the ocean or lake will give a dose of serenity to your lifestyle, as relaxing will be such an easy thing to do here. A peaceful environment and the ability to do all sorts of water activities whenever you want is the strongest advantage of making this investment.
High demand
Waterfront properties are always in high demand, both among buyers but also long-term tenants and tourists. This ensures you always have an option – buying a waterfront property means you can easily sell or rent at any time. Such homes usually have a high resell value, allowing you to profit if you decide to sell.
Ownership pride
Feeling that you’re in your own home is precious. The sense of belonging to a place gives you a dose of peace and security you can’t put a price on. Homeownership comes with responsibility, yet it helps you find a place to belong to and take care of to create a safe harbor for your loved ones.
Downsides of owning a waterfront property
If you decide to buy a waterfront property over renting, expect to have more responsibility when it comes to maintenance. Waterfront homes are generally more expensive in the first place, but they also come with more maintenance costs, too. Be sure to plan this purchase well and have a solid financial plan to keep up with all the expenses.
Next, you need to be very careful with maintenance as well as insurance. Owning a home near a body of water includes risks of rising water damage, so you need to be aware of the anticipated impact of climate change — and the current weather — all of the time. Invest in a good insurance plan that fits your needs and take good care of your property at all times.
Rent or buy a waterfront property – how to choose?
Always remember that what’s good for some people may not be a good choice for you. This is a rather important decision, so you need to make it with utmost care. Consider all the factors that affect your choice, including your lifestyle, long-term plans, budget, and more. And most importantly – take your time. Whether you choose to rent or buy, don’t make any quick decisions that might cause you to regret. If necessary, rent a home for a while until you see if you’re ready to become an owner and dedicate your time and money to a property.