Waterfront Properties

Owning a waterfront property, whether on a lake or river, is a goal of many who live, work and play in Muskoka. Few can deny the appeal of looking out over the water from the comfort of home or cottage, and many can only dream of owning a piece of paradise. Waterfront properties can present many challenges as no two are alike. Various factors can impact the value of a property and the ability to secure financing, such as construction quality, age of structures, water supply, waste disposal, access, shore road allowance, exposure, topography, 3-season vs. 4-season dwelling, lake vs. river, water quality, and size. Additionally, some lakes dictate higher prices than others. So how does one navigate the waterfront market and ensure that their budget will afford them the lifestyle of their dreams? It’s critical to keep things in perspective, develop a gameplan, know what you want — and more importantly, what you don’t want — and work with a REALTOR® who knows the area.

Choosing the kind of waterfront
The term ‘waterfront’ typically conjures images of a tranquil lake with sandy shoreline and long views across the bay. But for others, a river holds great appeal. For others still, a large pond offers the serenity they crave. Some lakes have motor restrictions in place, limiting the speed of motorized watercraft or banning it altogether. Rivers that limit travel to a certain stretch between rapids or waterfalls will generally offer less appeal than rivers leading to larger bodies of water. These factors will affect market price, use and value appreciation going forward.

Three seasons or four
Unless they are well insulated, serviced by a reliable source of water, an affordable source of heat and year round accessible roads, many waterfront properties will not be suitable for winter use. While this may be fine for many, others may want to partake of all 4 seasons of use to enjoy snowmobiling, skiing, ice fishing and other cold-weather activities. In addition, properties that are only designed for 3 season use often require proactive

Building materials and structural components
As Muskoka lies within the Canadian Shield, construction approaches have to take into consideration the rugged natural terrain. Many waterfront homes/cottages are built on piers, raised up off the ground. The significant temperature fluctuations of the seasons can cause frozen ground to heave and shift these piers over time, compromising the home’s integrity. Other structures incorporate the natural granite outcroppings into the foundation system. While this can provide a solid structural base, it could result in water penetration over the granite and into the dwelling.

Costs and maintenance you may not have considered
Urban dwellings are typically serviced by municipal water and sewer, but most waterfront properties draw water from a lake/river or well. Heated water lines may be needed for water sourced from a lake/ river to prevent freezing and splitting of pipes in colder temperatures. Filtration systems, including media filters, water softeners and UV systems, may be needed to ensure adequate water quality. Wells — both dug and drilled — generally provide a more reliable supply than water drawn from a lake/river, but if a well runs dry, the cost of a new one could be in the range of $10k – $20k. Very few waterfront properties will be serviced by municipal sewers, and most have either a septic system or holding tank for waste Septic systems allow fluid waste to be naturally cleaned by the ground, leaving solid matter in the tank. Holding tanks collect all waste, fluid and solid, in a chamber. Both will need to be pumped and inspected periodically to ensure proper function. Private roads may require ongoing contracts for maintenance and plowing, which add to costs. Docks can be destroyed by ice and maintenance measures and need to be ‘winterized’ with plumbing lines drained and blown out prior to sub-zero temperatures take hold to ensure water lines and other elements are protected.

Research the body of water
Lake/river depth, water quality and water source (spring-fed vs. watershed) should be well researched and understood before buying property. These factors can present potential dangers and costs, and may even result in decreased value later. Shorelines can erode badly if flooding is common, jeopardizing your investment, and many insurers will not cover flood damage in known flood planes. Poor water quality and potential algae problems may render the water unsafe. Always ask about the history of the area. Whereas spring-fed or deep lakes generally offer a higher level of water quality and a substantial water volume/buffer to counteract environmental and man-made pollutants.

Inspect the property, not just the dwelling
Some buyers make the mistake of placing too much importance on the home/cottage, and not enough on the property. It’s said that if you find the right lot on the right body of water in the right location, everything else can be changed. This can create great potential for improved value going forward if budget and resources allow you to purchase a great property with an older cottage and re-build or redevelop to create the home of your dreams. A note of caution, however; While in theory this holds true, bylaws and zoning can restrict certain kinds of development and/or improvements on the land. If your plan is to build/rebuild, look into municipal and district zoning and development charges as well as limitations. moving or rising water. Permits may be needed for replacement. Taxes on waterfront tend to be high. Be sure you’re aware of all the potential costs associated with waterfront living.

Access
While most people do give some consideration to 3-season vs. 4-season properties in terms of their ability to enjoy the dwelling itself year-round, few tend to realize that some waterfront properties are simply not accessible at certain times due to inability for the road to be plowed or frozen waterways. Island or water only properties that cannot be safely accessed in winter may also require additional consideration in summer. How will you get to your cottage? Is there a water taxi? Do you have to buy a boat? Where will you park your car? Where will you dock your boat? But these same properties may provide those on a budget with an excellent opportunity to get into the market. If you’re comfortable with restricted access, and happy with the price, a seasonal, water-access- only or island cottage may be what you’re looking for.

Supply and demand
Unlike the residential market, waterfront property is much more finite. No new lakes are going to pop up overnight, funneling more inventory into the market. As such, with supply increasingly limited and demand increasingly rising, waterfront properties are often able to dictate certain price premiums, especially on lakes and rivers that are considered preferable. Thus, waterfront properties often move with a slightly different rhythm from the rest of the real estate market.