There are plenty of opportunities to own lakefront property in Minnesota, the state belovedly coined The Land of 10,000 Lakes. Whether you’re looking for a gorgeous retreat on the expansive Lake Superior, a quaint cabin on a smaller lake near the Twin Cities, or something in between, the perks of owning a lakefront property may convince you to take the plunge and purchase your dream vacation home.
Here are some key benefits when owning lakefront property. Let’s get started!
Lakefront property is a scarce resource, meaning there’s strong profit potential
By its nature, lakefront property is a scarce resource, meaning its value will normally rise over time. Because of their scarcity, it makes owning lakefront property a great financial investment, retaining value over a longer period as compared to properties elsewhere in the state. Plus, if you decide not to sell in your lifetime, you’ll have a place where your friends and family can gather for years to come.
Lakefront properties can provide you with rental income
In addition to a strong resale, lakefront property can also be used to generate rental income. All year round, people rent lakefront properties for the same reasons that you bought yours – to have fun and relax!
There will be peaks and valleys throughout the year when renters are more likely to reserve accommodations, meaning you might not be able to use your own property if you want to actually make a significant amount of money. For most lakefront homeowners, your weekly rental rates should equal of be greater than the property’s monthly mortgage payment, letting you break even with an annual occupancy rate of about 30 percent.
Lakefront properties may provide you with big tax deductions
If you don’t allow renting, you can treat the mortgage on your lakefront home the same as you would for your primary residence, meaning taxes are fully deductible from your gross income.
If you do rent out your lakefront property, but use the property as well, you’ll may be able to deduct operating expenses. To find this out, add up the days your property was rented throughout the year. If you occupied the property fewer than 10 percent of the days it was rented or for fewer than two weeks (whatever is greater), you can deduct all operating expenses of the home. This includes interest, utilities, cleaning costs, lawn care, snow removal and other fees. If you need help understanding eligible deductions, review at IRS Publication 527.
Lakefront property lets you enjoy limitless recreational opportunities
There’s no better place than a lakefront property to enjoy a number of recreational activities. From water sports, like fishing, water skiing and paddle boarding, you can have fun in the sun all weekend long. Of course, recreation activities in a lake town are never limited to water sports – there are opportunities for golfing, volleyball, rock climbing and running, among other outdoor sports. You can also use recreation as a way to meet new people and build a nice social life in the town where your lakefront property is located.
Lakefront Property in Minnesota can serve your unique interests
Before purchasing a lakefront property in Minnesota, do you research. Many lakes in the state are better for boating, water sports and socializing, whereas others are better for isolated activities like hunting and fishing. So be aware – not all Minnesota lakes offer the same benefits; the best lakes for recreational activities are probably not the best for fishing.
Lakefront property may provide health benefits
Similar to spending a relaxing day by the pool, retreating to your lakefront property gives you a break from fast paced city living. Just being away from all the hustle and bustle and surrounded by fresh air, wildlife and nature will have a positive effect on your well-being, mental health and overall mood.
Although you may pay a higher price for lakefront property, the potential health benefits may be worth the cost. It’s hard to be in a bad mood when you wake up to the soothing sounds of waves crashing and lakefront view out your back window. Being on the water can also lead to a healthier lifestyle and help you stay more physically fit in general. Property owners have easy access to enjoyable outdoor activities, from swimming to paddle boarding to beach volleyball and much, much more.
Contact A.D. Hays Group today to find your dream vacation home!
Whether you want a remote cabin in the woods or a stunning lakefront property, we can help you find the ideal vacation home. We’re the experts when it comes to buying and selling vacation properties – our team is here for you to help you with every part of the realty process. Contact us today to find out more about how we achieve success for our clients. Get in touch.