{"id":7447,"date":"2018-10-12T10:00:54","date_gmt":"2018-10-12T10:00:54","guid":{"rendered":"https:\/\/lakehomes.com\/info\/?p=7447"},"modified":"2026-01-28T10:20:08","modified_gmt":"2026-01-28T16:20:08","slug":"the-advantages-and-disadvantages-of-owning-a-lake-home","status":"publish","type":"post","link":"https:\/\/www.lakehomes.com\/info\/lifestyles\/the-advantages-and-disadvantages-of-owning-a-lake-home","title":{"rendered":"The Advantages and Disadvantages of Owning a Lake Home"},"content":{"rendered":"\n
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Photo courtesy of Pikist<\/a><\/em><\/figcaption><\/figure>\n\n\n\n

Home ownership is a big deal and a large part of the American dream. And when that home is a lake home, it makes the dream even more vivid. But owning a lake home is no walk in the park. It requires long-term commitment and a ton of responsibility to keep the place up and running.<\/p>\n\n\n\n

The maintenance in and of itself is a lot to keep up with, and at a lake home, maintenance is an even bigger factor.<\/p>\n\n\n\n

That’s why so many choose to just rent vacation homes for a few months at a time rather than buy them.<\/p>\n\n\n\n

So how do you decide when it’s a good idea to opt for ownership? Let’s take a look at some common advantages and disadvantages of owning a lake home. That way, you can make a sound decision about what’s best for you and your family in the future.<\/p>\n\n\n\n

The Advantages of Owning a Lake Home<\/h2>\n\n\n\n

Most of the advantages of owning a lake home are glaringly obvious, while some aren’t as easy to spot at face value.<\/p>\n\n\n\n

First, mortgage costs–which are typically fixed-rate payments–are more stable and predictable than rental rates, which are known to fluctuate. Additionally, buying is often cheaper than renting.<\/p>\n\n\n\n

When making the switch from renting to owning, the average person adds one bedroom and 400 square feet to their home, according to Zillow’s 2017 Consumer Housing Trends Report. <\/a><\/p>\n\n\n\n

Assuming they make a 20 percent down payment and a typical monthly rate, the average renter could buy a larger home and still pay $330 less each month on their mortgage than if they were renting.<\/p>\n\n\n\n

Also, when market conditions are stable, homes tend to increase in value and build equity, making them sound financial investments. If you use your lake home as a second home, renting it out<\/a> a few times during the year can speed up the process and make for an extremely lucrative source of residual income.<\/p>\n\n\n\n

According to Home Away’s Vacation Rental Marketplace Report<\/a>, in 2014, vacation rental owners charged an average rental rate of $1,520 per week ($217\/night). That translates to a residual annual income of $27,360 for the owners, and that’s just on average. <\/em><\/p>\n\n\n\n

Home Away also noted that 54 percent of vacation homeowners cover at least three-quarters of their mortgage costs by renting their homes to vacationers. In short, owning a vacation home can make you some money.<\/p>\n\n\n\n

Additionally, owning a home creates an asset that will only increase in value for years to come.<\/p>\n\n\n\n

The Disadvantages of Owning a Lake Home<\/h2>\n\n\n\n

As with any home, ownership of a lake home does come with its disadvantages.<\/p>\n\n\n\n

For starters, owning a home is essentially growing roots. It ties you to your community and makes it difficult to just pick up and leave.<\/p>\n\n\n\n

This long-term financial commitment includes high up-front costs like down payments, closing costs and moving expenses. Plus, in many cases Home Owners’ Association fees are inevitable.<\/p>\n\n\n\n

It’s also harder to qualify for a loan on a second home than on a primary residence. Those shopping for secondary residences are often expected to have higher credit scores and put more money down.<\/p>\n\n\n\n

According to U.S. News and World Report<\/a>, the higher down payments reduce the lenders’ risk if the borrower defaults, which is seen as more likely with second homes.<\/p>\n\n\n\n

Another disadvantage: as a homeowner, all repairs and maintenance responsibilities fall on you.<\/p>\n\n\n\n

And lake homes tend to require more frequent repairs and maintenance<\/a>. Since lakes are usually surrounded by more trees than the average neighborhood, structural damage to roofs\/buildings are a real threat.<\/p>\n\n\n\n

Lake homeowners also have to fight against mold and mildew, which is more prevalent thanks to all the moisture in the air.<\/p>\n\n\n\n

In addition to all of that, traditional wooden docks tend to have a lifespan of 20-25 years. This can be shortened in the face of environmental factors like storms or water damage, so frequent upkeep<\/a> is a necessity.<\/p>\n\n\n\n

These disadvantages, while inconvenient, are inevitable aspects of owning a lake home. But do the pros outweigh the cons?<\/p>\n\n\n\n

So Is It Worth It?<\/h2>\n\n\n\n

The good thing about lake living is that the experience varies greatly depending on what lake you choose to buy on, so you have options.<\/p>\n\n\n\n

Purchasing a home in a small, suburban community that has a tiny lake for aesthetic purposes is a lot different than buying a waterfront estate on New York’s Lake George.<\/p>\n\n\n\n

Lakes are perfect for those who prefer peaceful, tranquil living to hectic city life. And if you actually like hectic city life, there’s a lake for that.<\/p>\n\n\n\n

Do you like hiking, mountain biking, skiing or sledding? There’s a lake for that. Are you into nature photography, hunting or fishing? There are so many lakes for that.<\/p>\n\n\n\n

Purchasing a lake home has its disadvantages that are similar to what you’d face buying any home.<\/p>\n\n\n\n

However, it’s a sound financial investment, a valuable generational asset, and it offers a certain lifestyle you wouldn’t be able to find anywhere else.<\/p>\n\n\n\n

Whether you plan to live there full time or visit only when the weather’s nice, buying a lake home is totally worth it.<\/p>\n\n\n\n

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