Water Access

[serendipity]

Anyone have any idea of the demand on water access only properties?  I'm interested in one, but just mildly.  It strikes me that these would scare off a lot of people due to access issues for future use, reno's, building, etc...

How have these typically been viewed in the past?  I guess islands are a whole different kettle of fish though.

Thanks!

BTW - Great and informative site.

[Rob]

The biggest problem I have found is you need access to a dock on the mainland which usually means renting or buying space.  That could run you from nothing to a few thousand dollars.  Also, year round access to your property might be impossible unless you have a small plane.  Even if the lake the island is located on freezes in the winter, you can't travel late fall and early spring when the ice starts melting or forming.

I like the idea of owning an island. 

[serendipity]

And that is the conundrum.  Mainland facilities.  Lack of that really can decrease value.  I guess you could always throw on your boots/snowshoes and do some bushwacking.   

[Rob]

It could also increase the value.  If a buyer values privacy and has a small float plane it would be ideal.

Reselling this type of property is definately not something you want to try as your first resell or it may be your last.

[serendipity]

What is Karma?

[speedfreeksteve]

Water access is MUCH less desirable than road access. Even some land with seasonal road access (6-8 months of the year) are worth much less than something comparable with year round road access.

There's only a very limited amount of people that are willing to go through the trouble of getting a water access only property. The only exceptions I've seen is for islands, and on large lakes with water accessible amenities (grocery/liquor store, etc) such as can be found in Honey Harbour (Georgian Bay).

Basically my point is, if you are looking at a water access property, you really need to discount its value significantly in comparison to road access properties. Especially if significant work is needed such as clearing the land and bringing building materials there.

[serendipity]

They may much less desireable but there has been considerable interest in the ones available.

I guess it all depends on taste.

[Frank]

If you've ever owned a water access cottage you know why they are considerably less money.  Want to get a new fridge - getting it there can be fun.  Want to hire someone to do some work on your cottage - good luck.  Don't leave too late to get there, or get stuck in a traffic jam on the way there, cause if you get there after dark you'll be renting a hotel room for the nite.   Don't have a heart attack either, cause the ambulances don't float. 

I had one for two years and that was quite enough, - everything had to be lugged in, and I had to incurr several hundred a year in additional expense for the dock at the local marina (lucky if your lake has one by the way).  No hydro or phone, everything ran on propane and generator.  Any work had to be done by hand since getting a piece of machinery out was very costly and sometimes impssible - not much chance of drilling a well for clean drinking water, and heaven help you if you have a septic tank that needs pumping (most likely you have a composting toilet, or an outhouse - which also need constant maintenance (by you).   If you want to take a quick trip into town remember to get back before sundown and give yourself the time you need to get out to the cabin.  OH YES, make sure your outboard engine is in tip top shape, or you will be rowing the ten k back to the dock (bursitis time).

If you have a land based cottage, even if it is seasonal road you can still get in by ski-do.  With a water access that is not possible for a good part of the year (wear a floating ski-do suit).

[serendipity]

Those are all very good points Frank.  I guess it depends on each persons situation and the resources available to them in the area.  But even if you had the perfect situation you wouldn't want to overpay.  If you decided to ever sell you would end up having a tough time recouping your investment.  The only scenario where I guess this would be a win-win is if you intended on keeping the property for the long haul.

[Frank]

I forgot to mention, that when you get to the cottage (or leave), and it is raining - good luck if you only have an open boat.  Also, if you are out there and it rains - you are stuck.  These kinds of things can make your loved ones quite miserable. 

But you are right it is all a matter of choice.  I've known several elderly persons who have had these kinds of cottages all their lives, but there comes a time when they end up selling them (for a discount) cause they just can't make the trip anymore.

[Frank]

What is Karma?

Serendipity

Karma is what you get when someone 'applaud's you.  If they 'smite' you, then your karma goes down by one.

[Rob]

Serendipity, if you like what sayone says you can applaud them on the other hand if you dislike what someone says you can give them a thumbs down by smiting them. 

[karlo_k]

A good boat is definately an asset...and a place to keep it that is less than 1km away.   You'd probably notice that the water access properties are occupied far less than road access....ie no one really goes there.   I'd think they would be a lot cheaper...but also very hard to sell.

[speedfreeksteve]

I think the only reason for water access having any sort of interest is the perception that they will be much cheaper than a road access lot, which is usually true.. but it still doesn't mean your getting a good deal.

Look at it this way, you can still get waterfront, road accessible property that is around 3 hours from Toronto for as low as 20-25k  if you're lucky and know where to look. An equivalent water access only property 2-2.5 hours Toronto will usually go for more than that, even though you're probably looking at 2-2.5 hours by car, and then 30 mins by boat just to get to it. 

My point is, water access property is overvalued right now in some areas which could be a good or bad thing, depend on whether you're a buyer or a seller.

[serendipity]

Very good post speedfreak.  It is all about perception.  One thing that I have found out about this tax sale business is that the biggest challenge is to seperate emotions from the investment side of things.  I've only been at this awhile and have yet to succeed with a bid but I can definitely say that it is tempting to get carried away in the competitive nature of the business.  It's addictive and sometimes you want to win just to win.  In the end it is really all about the research and taking smart calculated risks without the emotion.  The only exception to this rule should be if you find a property that is truely what you want and plan on never selling it.