Long, balmy summers spent out on the lake, fishing, and boating. Sunsets, campfires, and s’mores. Families who own lake homes can make memories that last long after the vacation has ended.


But, from a financial standpoint, is it worth it to buy a lake house?


Here are some points to consider if you’re looking to purchase your own lakefront real estate.



Will It Be A Second Home Or An Investment Property?

It’s essential to know the difference if you plan to take out a mortgage for your lake house. Lenders typically charge higher interest rates for investment properties that are being used to rent out and/or be sold for profit. This is because lenders consider this type of home loan to be riskier, as the buyer isn’t living in it – and therefore typically have less of an emotional attachment to it.



Consider Insurance Costs

There is more to buying a lakefront home than just your loan repayments. Flood insurance, for example, tends to be a necessity. Even if your property isn’t in a current flood zone, this doesn’t negate the need for adequate insurance. Just a couple of inches of water can create costly problems for homeowners. Not to mention, most homeowners insurance does not cover flood damage. Without insurance, you could be one natural disaster away from a ruined lakefront dream.



Maintenance Costs

Maintenance costs tend to higher for Lake Front properties. This is because homes close to the water endure a lot more wear and tear. This is especially true if you also have other features to maintain, such as a dock. Most wooden docks only last up to 20 years. Purchasing a lakefront property that has a dock close to the end of its lifespan can create significant additional expenses.



lake house worth it


Location Is Key

Some lakefront properties are secluded and difficult to get to. Although this may seem like the perfect way to get some peace and quiet, it could also make it challenging to schedule in time to visit your property. It’s also important to be specific about the type of lake that you want to be on. For example, is it skiable? And how busy is it during the season? All of these factors can affect your enjoyment and the use of your property.



Lakefront Property Comes At A Premium

There are a finite number of lakes, and therefore a limited number of lakefront property. This means that homes on the lake can ask for significantly more than a similar home located elsewhere. Although the initial outlay is higher, a lake home on a particularly beautiful lake can be a smart investment opportunity.

To offset costs, you could also consider renting your lake home out for other people to enjoy it too.


Lakefront property can be the perfect way to escape the stresses of life and unwind with family and friends. It could be argued that the wonderful memories that lake homes help create are much more valuable than the cost of the property itself.

Regardless of whether you’re interested in purchasing a lakefront investment home, or somewhere that you can raise your family, it’s crucial that you seek the advice of a professional.


Licensed real estate agents who specialize in lakefront property can be a wealth of knowledge. Finding the right home for you will be significantly easier with an experienced professional by your side.