6 Mistakes to Avoid When Relocating to Waterfront Property in Ontario
In addition to stunning views, a waterfront home can offer prospective buyers relaxing water activities, from fishing to boating and kayaking. Living on the water will also bring new responsibilities and risks that buyers might not consider before purchasing a new waterfront home.
With that in mind, this article will discuss six common mistakes that should be avoided when buying a waterfront property in Ontario.
1. Not Considering a Property’s Location
When you buy any home, research on the location and the impact on insurance is an important task. A home’s location will have the greatest impact on insurance costs. You will need to know if your potential home is in an area prone to wildfires and hurricanes. Other factors like crime can have a certain type of impact on insurance rates.
2. Failing to Consider Applying Flood Insurance
Homeowners’ insurance will cover the cost of fixing damages caused by natural disasters, something that is essential for every home. In addition to homeowner’s insurance, flood insurance is a necessity for homes by the ocean or lake. Waterfront homes are far more susceptible to flooding, and flood insurance will cover your house and belongings from any water damage. Research what flood zone your potential property falls under, and you can determine what type of flood insurance you may need. You might also need to consider flood mitigation if the sea level is slowly rising in your area.
3. Being Unproactive With Financing
Waterfront homes are more expensive than other homes due to the appealing location. Many lenders will opt to place waterfront properties in a specialty loan category. You will more than likely need a jumbo mortgage, a type of loan that is used to purchase properties that may exceed the typical loan limit. These types of loans may take longer to underwrite, and it may be best to obtain financing to avoid any compromise on the sale.
4. Failing to Have the Property Inspected
You might want to avoid buying a house that has not been built to withstand the waterfront. An ill-equipped house is far more susceptible to expensive damages. Inspect the property for features that can protect it from weather, like storm shutters or a high foundation. It is crucial to discover whether or not you can swim in a boat on the water that is near your home.
5. Being Unaware of Waterfront Home Responsibilities as a Homeowner
Your potential waterfront home might be a part of a POA (property owner’s association) or an HOA (homeowners’ association). If this is the case, you may have more specific responsibilities that are required of you. These particular rules and regulations might include what color you can paint your home and what type of landscaping is allowed.
6. Not Checking Community Rules and Regulations
You might consider improvements or additions for your new property, like a new pool or a dock. However, it is essential to keep in mind that additions to your home might increase your homeowners’ insurance. Removing brush or trees is another project that needs to be approved by the city. When researching local laws, you can better determine if buyers can improve the home.
Conclusion
Waterfront Properties will require extra maintenance and protection against natural disasters and other unpreventable damage that can happen to your home. Whether it be proper flood insurance, inspection, or learning your new responsibilities, you can prevent costly mistakes when investing in a waterfront property. Trust your local real estate agents at Hendricks Team Realty to guide you in finding the waterfront property of your dreams in the many historic urban and suburban neighborhoods that make up Ontario today.