As a real estate agency deeply rooted in the Adirondack region, potential buyers often reach out to ADKPP wanting to know is a lake house a good investment? The short answer is: it depends on the buyer. Each situation dictates its own limitations or future goals for a lakefront property. Where these criteria shake out ultimately determine whether a waterfront home is a good investment.
For the right buyer, at the right lake, with the right expectations, yes, it can be an excellent investment. However, like any real estate decision, look past the postcard view to determine what you expect out of the property as far as use and return. Read on for our expert ADKPP advice to help you make decisions on your potential waterfront investment.
Key Considerations: Is A Lake House A Good Investment in the Adirondacks?
1. Consistent Buyer Draw to the Adirondack Region
The Adirondack Park is unlike any other destination in the Northeast. The Adirondacks offers six million acres of protected land and hundreds of lakes, making this an ideal place to start your search when it comes to lakefront properties. Lakefront homes in our region aren’t just second homes, they have become legacy properties. Many of these properties stay in families for generations reducing turnover and helps stabilizing pricing, even if other markets are in flux. This style ownership builds years of memories and pride in the property and connection to the waterway.
Depending on what style of property you are looking for, know that there can be strict development guidelines around Adirondack waterways and supply is naturally limited. This care for and scarcity of property helps support long-term property values and protect the natural resources near the property. This is often a major attraction for buyers who have fallen in love with the area.
2. Strong Lifestyle Value (That Often Translates to Financial Value)
Whether you are talking to locals, seasonal residents or visitors to the region, all will likely agree that one of the biggest draws that brings people here is the lifestyle value. Much of the people who seek to experience or live in the Adirondacks value a slower pace of life with easy access to nature and outdoor recreation opportunities. Additionally, another big advantage of owning an Adirondack lake home is that it can offer both personal use and investment potential. Here are a few things to consider with the lifestyle:
- Four-Season Recreation: Owners can enjoy world class outdoor recreation year-round. Summers offer great boating, swimming, golf, hiking as well as other opportunities to explore nature. Fall brings some of the best foliage in the nation with enjoyable & comfortable temperatures to complement the gorgeous scenery. Winter brings plenty of snow sports from lake skating, nordic trail or backcountry skiing, downhill skiing and snowboarding on various mountains. Spring time offers weather dependent outdoor opportunities from late season skiing to lower elevation mud season hikes alongside a wonderful time of renewal.
- Short-Term Rental Potential: Well-located lake houses can perform strongly as short-term or seasonal rentals, particularly on popular lakes with good access and amenities. Throughout the Adirondacks, communities are starting to implement short term rental regulations. If you intend to rent, look into what current STR regulations are for that area.
- Privacy & Seclusion: Those looking for privacy, nature and space can likely find a property to check off those boxes and add lifestyle value. These trends have only strengthened in recent years, providing a secure financial value for these style properties.
Even when rental income isn’t the primary goal, lifestyle return alone is significant for many buyers who decide to call the Adirondacks home or second home.
3. “Good” Investment Factors For A Lake House
Taking into consideration how many lakes can be found throughout the Adirondacks, each will has its own quirks and unique lifestyle. Additionally, not all lake properties are created equal between privacy and pricing. In our experience, the strongest investments tend to share a few key traits:
- Lake Quality and Reputation: Main focal points that buyers look for in a lakefront property are clear water, motorized boating (where permitted), and year-round appeal.
- Thanks to environmental groups throughout the Adirondacks, many waterways are protected and monitored to protect waterway health.
- When it comes to motorized boating, there is wide variety throughout the Adirondacks on what vessel types are allowed on waterways, even in the same community. In Lake Placid, Mirror Lake is a non-motorized lake, while Lake Placid allows motorized boats with the exception of jet skis.
- Year-round properties will generally always be priced higher due to continual access versus a seasonal or boat access only property requiring specialized equipment to reach the property throughout the year.
- Accessibility: As stated above the accessibility of the property can be a major influence on whether the property is a “good” investment. Easy access year-round properties have more draw versus others that are difficult to reach. Buyers also consider if the property is a reasonable driving distance from major metro areas. In the Lake Placid region, some homeowners make a 5 to 6 hour trip from New York City or New Jersey to enjoy their Adirondack properties. Another aspect that increases value is access to the local community. While owners may want privacy, a reasonable trip into the community for grocery shopping, dining, or attending events can provide an additional bump.
- Zoning and Permits: If you plan on purchasing or building in the Adirondacks, get to know the Adirondack Park Agency. APA regulations help protect value, but can also limit expansion so buyers who plan on living in the region will need to understand what’s allowed.
- Condition and Maintenance: Like most properties, whether waterfront or residential, current condition and maintenance can affect whether a property is a “good” investment. As you are plan a waterfront home purchase, determine the condition and level of maintenance needed. Keeping up on maintenance during ownership will help hold value over time.
Bonus – Serenity and Memories: While the list above is more focused on financial and physical property aspects, another thing to consider is emotional aspects that make a good investment. Enjoying your morning coffee or tea in the peace of nature overlooking the lake, adventures on the water and funny stories from local explorations can all be great personal investments that will be remembered for the years to come. Potential memories can provide an extra boost for a strong investment decision.
4. Risks To Keep In Mind
Like all real estate or investments, there are always risks. Be realistic as you look for the perfect property and take into consideration possible risks. If you plan residing as a full time resident, some of the risks around the property could more easily mitigated that those experienced by seasonal or part-time residents. Lake houses are not “set it and forget it” investments. If you plan on owning a waterfront property in a more part-time capacity, you will want to consider:
- Maintenance Costs – As stated above lake houses are not a set it and forget it investment. Changing seasons can increase maintenance effort and cost needed to keep your property in proper running order. This is generally affected by the weather. If the property is year round, consider seasonal maintenance like snow removal, spring and fall property cleanup, and dock systems (removal & replacing). As a seasonal property, take extra care to winterize your property correctly and ensure protection of major systems throughout the property that could be damaged by winter weather. If you plan on using the property seasonally, look into hiring a care taker to check the property regularly and keep up on maintenance.
- Rentals – If you plan on renting the property, determine what the realistic numbers could be. Various areas throughout the Adirondacks can more seasonal income, like Lake Placid that experiences periods with fewer events drawing visitors. Additionally, consider the local regulations and whether your target area has a limited number of rental days permitted per year.
- Liquidity – Depending on location, price point and how the property has been maintained, you may find liquidity to be lower than urban markets. Many of these homes have a history and are special, so it may time to match with the right buyer. While it could take longer, lake front homes can sell quickly based on the season, current market conditions as well as the good investment breakdown from above.
That said, informed buyers who plan for these factors are often very satisfied with both their ownership experience and long-term results.
5. Expert Advice from ADKPP Real Estate Professionals
At Adirondack Premier Properties, we believe that a lake house in the Adirondacks is rarely just about maximizing short-term returns. It is really about finding the perfect fit for your lifestyle. When you purchase a unique lakefront property, it should be about enjoying an exceptional lifestyle. Enjoy the serenity of the Adirondacks while owning something truly irreplaceable.
Lakefront properties in the Adirondacks are for those buyers who value natural beauty, limited supply, and long-term appreciation over quick flips. Adirondack lakefront property remains one of the most compelling real estate opportunities in the Northeast.
If you’re considering buying or investing in a lake house, working with a strong local agency who understands the nuances of Adirondack lakes, regulations, and market dynamics will make all the difference when it comes to a successful process. Our experienced ADKPP forever agents are always happy to help you find and evaluate specific properties throughout our region to fit your financial and lifestyle goals. Call us today at 518-523-3333!