Lakefront or Lakeview Lots ??? That is the question.
Many folks I talk to on a weekly basis purchased a lakeview lot a couple of years ago and are now ready to turn that lot over for profit. They are often very surprised to hear from me that a profit on a lakeview lot is not typical. If you purchase a lakeview lot in one of the newer communities, you are most likely purchasing a lot at a higher price than buyers in old communities paid for theirs. Once you add annual homeowner's fees, taxes, any interest you may be paying for a loan, and other costs associated with purchasing the property and realtor commission, in most cases your property is now priced 'way above market price.
There are two other factors involved here as well. All communities have lake and/or mountain view properties - the majority of the property in any given community is going to be view and not lakefront. Which means that, today, there are well over 400 view lots on the market. Contractors I have spoken to tell me that, when people purchase view property they should do so with the intention of building on them.
We have over 800 miles of shoreline, of which only around 20% can be developed. And most of what can be developed has been. This makes lakefront property very finite. I am not an investment counselor only a lowly Realtor, but in terms of investment lakefront makes more sense to me.
Homes with fabulous lakeviews have, in the past, done well - although this year's market has been a little strange.