Time for a Lake Home?

Pros and Cons of a Second Home

Buying a lake house is a big step and often your second most valuable investment. Never rush into a lake home purchase. You need to consider it over time. Determine how much use your lake home will get and how it can fit into your finances.

For some, this is just too stressful.  At the same time, owning a lake home on Lake LBJ can be very rewarding. It can be the source of relaxation: a time to get closer to your family, a place to be a kid again, and a place to meet new friends. It can even be a place to retire.

Lastly, owning your own lake home is not like renting. You get to leave your stuff there to truly make it yours. You can make impromptu escapes, leaving the stress behind. And your children and grandchildren will feel more comfortable in a place they have learned to call home.

If you’re thinking about buying a second home on Lake LBJ, you’re not alone. In many communities around the lake around half of the homes are second homes. 

If you’re considering the purchase of a lake home where do you start?

► Location. Consider your personal tastes, interests, and hobbies when you’re choosing a second home. For example, if you’re the type of person who likes golf as much as you do the water consider a community like Horseshoe Bay that offers 3 Robert Trent Jones courses in addition to all the water activities.  If you prefer a more secluded atmosphere it might be a good idea to look at smaller neighborhoods like Blue Lake or Oakridge.  Often some of the older areas have larger lots offering a little more privacy.

► How much are you willing to spend? Prices can vary greatly.  There are still cabins and fixer uppers and condos on the water that can be purchased for less that $500k while many of the homes are well over $1,000,000 with some in resort communities like Horseshoe Bay exceeding $5,000,000.  Prices will also vary based on the lot.  A home on open water will cost more than a place on a cove or canal.  Check current mortgage rates to get an idea of what your monthly payment might be. Don’t shy from jumping in the car and spending weekends looking at homes in different neighborhoods.


► Think about what it should look like. Is your dream lake home a rustic cottage? Or is it a condominium near a golf course? Perhaps it’s a larger place that could be your future retirement home. You'll need to determine how big it should be. Is it just for your immediate family or would you like to invite your extended family and friends?  A place at the lake tends to be a magnet for family and friends so you'll want to have enough space for everyone. 

► Find a great real estate agent.  This step is absolutely critical. A terrific real estate agent will take the time to help you understand the market, keep you informed during every step and can actually make the process of finding lake place relaxed and fun.      

► Take your time. There's really no reason to get in a hurry when you're starting to look for a lake home.  Lake LBJ is 23 miles long so take the time to learn about the towns and it's different communities.  Think about what amenities are important and much they are worth to you.  Use the search feature on this site to help narrow things down without driving back and forth. Remember - rushing into a second home purchase can be a mistake.

 


Look at a second home in the same way as your primary home. The most costly home repair projects are:

  • Kitchens

  • Bathrooms
  • Heating systems
  • Roofs

That doesn’t mean that you shouldn’t purchase a second home with an outdated kitchen. Just understand that if you can’t tolerate the current kitchen, it could cost you $10,000 to $40,000 to update. Unlike your primary home, you’ll have the additional challenge of managing a renovation project long distance with a quality contractor you can trust.

Buy a lake home that suits your personality and needs. If you don’t like working on your primary residence or dealing with contractors, look for a home that needs little work. At the same time, buying the smallest second home in the best neighborhood you can afford means your investment may appreciate at a higher rate.

Learn how long homes have been on the market to get an idea of how much room you have in negotiation. Learning the overall direction of housing values in a specific region can help you make educated buying decisions.