WHAT TO LOOK FOR IN LAKE REAL ESTATE

Business People, Mar 2008 by Carmody, LauraMarie

Beginning in the spring of each year and continuing through the fall, the lakes of Steuben County are teeming with activity. Interspersed among the residents and visitors is another distinct group of people looking to invest in lakeside real estate.

The most sought-after property is located along the county's all-sports lakes and their offshoots. All-sports lakes are substantial enough for waterskiing and related high-speed sports. Clear Lake, Crooked Lake, Hamilton Lake, Jimmerson Lake, Lake Gage, Lake George, Lake James, Lake Pleasant and Snow Lake all fall into this category.

Smaller lakes like Big Otter and Little Otter have 10 mph speed limits, but because they are part of the Lake James chain, residents have access to several larger bodies of water. There is also a host of self-contained non-ski lakes and private lakes to consider.

Of course, desirability is subjective. While one investor may prefer a lake that welcomes ski boats and jet skis, another may appreciate the serenity of a lake that limits its activity to fishing boats.

No matter what a buyer prefers, the housing choices are seemingly endless. Single-family homes, seasonal cottages, condominiums and villas are all available.

As for the lots, there is lakefront property, channel front property and second-row housing with deeded access or association access to the water.

A key component in choosing a lot is foresight, according to realtors based near Steuben County's lakes. Prospective buyers need to consider the future utility of the space. Could a larger home be built on the same property? Could an extra parking area, garage or storage shed be added?

"We are seeing quite a few people tearing down homes - either right away or after living in them for a few years," says Craig Walker, a broker associate with Coldwell Banker Roth Wehrly Graber. "Lot size and functional utility are important if a buyer is thinking of rebuilding down the road. Ask yourself if there is new construction, will the lot size be adequate?"

"The value is actually in the land," explains Jane Kearns, a broker with Re/ Max-Tri-State Realty in Angola. "You can always change the house but not the property on which the house is sitting. Buyers need to consider access to the lake, ample parking for weekend guests and even yard space."

Walker points out that the age-old adage "location, location, location" also applies here.

"When you own property at the lake, the focus is the lake," he says. "You want to make sure you have a far-reaching view."

Location also means proximity to a swimming beach, according to Todd Stock, president and broker/owner of Re/Max-Tri-State Realty in Angola. That means being able to walk out from the shore at least 50 to 100 feet on firm ground, as opposed to stepping on rocks and muck.

"While the area and the neighborhood are important, they are not as important as the beach and the view," says Stock. "Frontage and beach are significant amenities in purchasing lake property."

Last, but not least, location equals accessibility to major traffic arteries. In this case that may include Interstate 69, the Indiana Toll Road and other thoroughfares.

Although lot utility, proximity to the water, beach access and other aspects of lake real estate must be evaluated, the ultimate question is whether the property is simply an investment or if it is a lifestyle choice. Stock reports that if a buyer is purchasing the lot as an investment, then it needs a great beach and a premium location. This is the most expensive scenario but also appreciates at the fastest rate. On the other hand, if this purchase is a blend of lifestyle and investment, which it almost always is, then the buyer needsto factor in what is most important for the entire family. In other words, determine what the family really needs to enjoy their lake home and make the best financial decision at the same time.

"The number one reason to buy lake property is the lifestyle and the chance to spend time away with the family," says Stock. "That's what it is all about. Buyers need to factor in their own use of the property and decide what it is worth to them."

"People should choose the lot and location that best suits their needs and fits their comfort level for price," adds Barbara Hendrick, a broker associate with Coldwell Banker Roth Wehrly Graber. "Buyers need to remember that it is a long-term investment."

A critical aspect of this investment involves using a real estate agent who specializes in lake real estate. An agent can offer sound advice on fair market value and share important information about the process and the area.

"Buyers should work with a realtor who is knowledgeable in the lake market," says Hendrick. "They need to feel comfortable working with that person and be prepared to answer questions that will help the realtor better understand their needs."

Hendricks also encourages buyers to keep an open mind when it comes to what they really want. She points out that choosing lake property isn't the same as purchasing real estate in a subdivision, because every lot is so different. Then again, the fact that every lot is different is what makes the search for the right piece of lake real estate such an exciting experience. That and the fact that it is one investment that offers some immediate benefits.