What motivates a buyer to buy a beachfront property? Why does one get a house in the mountains? A home with a great view is hard to resist. As more buildings are constructed, the chances of getting a property with a great view are getting increasingly harder. However, the better the view you want, the more money you have to pay. Before looking at those lakefront lots for sale in Murray, SC or that fabulous penthouse suite listed in NYC, let’s take a look at the factors that go into purchasing properties with a view.
Factors to Consider When Purchasing Properties with a View
- The Motivation
Views are hard to quantify. One person’s preference is different from another’s. It is highly subjective. One buyer’s heaven could possibly be another one’s hell. Let’s take lakes for example. A buyer looking for peace and tranquility will be disappointed in getting a house crowded by plenty of cabins with powerboats and jet skis. On the flip side, a buyer who wants to fully enjoy the lake with different toys will not be happy getting a property on a quiet fishing lake.
- The Location
Like any real estate property, location is an important factor. The neighborhood, demographics, accessibility, zoning, and future developments should be considered. For properties with a view, you need to ask whether the view is protected or not. For example, you are looking at buying an expensive home with a great view. However, you are unaware of future plans for a commercial structure across your property that will block your view. You have wasted a meaningful amount of money on the deal. Add to that the significant depreciation this development has brought on your real estate. Do your homework and make sure your investment will go a long way.
- The Valuation
Many first-time buyers are led to believe the physical characteristics of a property will inevitably lead to an increase in value. In reality, the physical structure’s value depreciates over time. On the other hand, the land on which it stands goes up in value. This might seem trivial, but knowing how land values affect property returns lets an investor make wiser decisions.
Beachfront and lakefront properties are among the best for return on investments as they rake in higher demand. Market studies indicate these types of properties increase rapidly over its original selling price. Lakefront properties, in particular, both big and small, rarely last in thriving markets.
How Much Does the View Cost?
The most important question now is, how much is it? Different types of views have different costs added to a property’s value.
- 5% to 10% of the property’s value for homes on flat grounds with unobstructed views of open spaces or parks.
- 10% to 30% of the initial value is added for homes situated in hills with partially obstructed views like rooftops. It will depend on how much of a view you have.
- 30% to 50% of the property’s initial value given the same conditions above with no visual obstructions.
- 50% to 75% of the value of a hilltop home with a view of the cityscape free from any obstructions.
- 75% to 100% or more for a home with a breathtaking and unobstructed view of a big lake or ocean.
Having a great view to look at from your property is one of the best assets your home will have. More than the return of investment, the spectacular view alone is unquestionably worth it.