One of the best investments an investor can make is a lake property or lake front real estate. Market studies show that these properties grow rapidly above the original purchase price. Both small and large properties rarely last in thriving real estate markets.
Just like vacation homes, lake properties offer investors generous returns on the investment year after year. Areas with lake front homes are usually occupied by tourists or temporary residents that vacation for selected months out of the year.
A lake property is also a good investment because it can be used as a single family or multiple family rental home. This gives property investors a steady source of income since these properties are in high demand.
While these properties are excellent investments, there are some disadvantages to owning lake front real estate. For starters, they face the risk of flood damage, especially in areas that have higher than average rainfall. Lake properties also tend to have higher tax rates because of how quickly they appreciate in value.
With these considerations in mind, try to decide whether a lake property is a suitable fit for you and your needs.