It’s widely known that waterfront homes appreciate better. But, aside from location, have you ever stopped to think about why that’s so? Well, most people simply believe it’s all about location. However, this isn’t the case. While the location is probably the biggest factor, it’s certainly not the only one.
Why Waterfront Homes Appreciate Better
Waterfront homes appreciate better for a few good reasons. So, let’s take a look at why this happens to get a better understanding of this long-term investment asset. Here’s why waterfront homes appreciate better:
- You’ve probably heard the old cliche that real estate is about three things: location, location, location. That’s completely true because a location is key. Think about it this way, if you could have a dream home built in a nice neighborhood for X dollars with only views of other house and the street or one on the water for the same price, which would you chose? Of course, you’d choose the waterfront property.
- Land availability. About 70 percent of the earth’s surface is water. But, that means that only 30 percent is land. And, only a fraction of that is waterfront. Simply put, the land is scarce so waterfront properties appreciate more rapidly.
- Development cost. When a home is built on the water instead of a landlocked lot, there are more development challenges. Which means it costs more to build a home on the water. Hence, it’s inherently worth more from the time it’s constructed.
Lastly, size and design are also factors. The very fact that a home has such great scenery means it’s built larger and with more creature comforts to maximize its appeal.