Come on in - The water's fine!

Is this the time to buy a lakeside vacation home? Our experts say yes.

by Jo Lord

When the weekend comes, Richmonders love to leave the city behind for a second home by the water. Some can’t resist the ocean. Others gravitate to the river or the bay. Still others fall for the charms of lakefront resorts such as Smith Mountain Lake and Lake Gaston. The good news in lakefront property is that now is a great time to buy.

SHORT-TERM OPPORTUNITY, LONG-TERM WINDFALL

Not surprisingly, the downturn in the national housing market created what is now a buyer’s market for lakefront homes. “Back in 2005, it seemed waterfront property was being priced out of reach for all but a small percentage of buyers,” says Paul Moore, team leader of Smith Mountain Homes Realty Team. “I regularly heard from clients who waited and thought they’d missed their chance forever. Now we see that wasn’t the case.”

Still, Moore says the window of opportunity will likely close again soon. He advises those that can to take advantage of this short-term buyers market for a long-term windfall.

LOTS OF REASONS FOR FAVORABLE BUYING CLIMATE

Lower interest rates are one reason to buy now, Moore says. Price flexibility is another. While sellers were disinclined to accept anything less than asking price in recent years, they’re now more willing to negotiate. There’s also less competition from builders and speculators who once grabbed up properties and artificially inflated prices. Inventories are higher for homes in all price ranges. Finally, while buyers in the first half of the decade often had to settle when it came to location and features, there’s now a great selection of both.

Arlene Enos, owner and associate broker of REMAX Lakeside Properties in Lake Gaston, concurs that now’s the time to invest. “Obviously, the stock market’s not where to put your money right now. Plus, they’re never going to make more waterfront property. If you can possibly do it, now’s the time.”

SMITH MOUNTAIN LAKE GAINING NATIONAL ATTENTION

Little by little, Virginia’s picturesque Smith Mountain Lake is attracting attention on a national scale. Author David Baldacci has a home there, for instance. David Stevens, former Freddie Mac senior vice president, calls it a “hidden gem for long-term investment” and passed over waterfront properties all over the East Coast to buy there.

For June, the arbiter of all that is hot in homes, HGTV, features Smith Mountain Lake – the only lake it’s including – during a weeklong special on waterfront living.

Naturally, the appeal of Smith Mountain Lake starts with the lake itself. The water stretches along 500 miles of shoreline surrounded by the Blue Ridge Mountains. “It’s a nice deep lake, a wonderful lake,” says Vicki Gardner, executive director of the Smith Mountain Lake Chamber of Commerce. It’s also a world-class fishing destination that last year hosted one of the world’s major fishing tournaments, the ESPN Bassmaster Elite Series.

The location is another lure. Nestled in central southwest Virginia, Smith Mountain Lake is just an hour from Roanoke and three hours from Richmond. Gardner also extols the area’s moderate climate, four beautiful seasons, history, dining, shopping, water sports and sense of community. “This is just one of the most delightful places,” she says. “Here, friends become family.”

So, how much will it set you back to become part of this community? Could you do it with $300,000, for example? According to Paul Moore, team leader of Smith Mountain Homes Realty Team, that will definitely get you in the door. At that price, you’re likely looking at a town home or two-bedroom condo with a “decent” waterfront lot, sometimes with a dock. “It could also get you a very limited supply of cottages or a trailer on a steep waterfront lot or a lot with a poor view,” he says.

What about $500,000? Moore says, “A great lot starts at around $450,000 or more. A great house starts at $250,000 or more. So ‘great’ really starts at $600,000 or $650,000.” Still, thanks to the market shift, he says those with $500,000 can do just fine. “You can now come here and get a decent, small vacation home or cottage or very nice condo for under $500,000. And that’s OK because someone might have a million dollar home in Richmond but when they come to the lake, they want something simpler like a cottage. So $500,000 is doable.”

LAKE GASTON SMALLER, MORE LEISURELY PACED

Lake Gaston sits on 350 miles of beautiful shoreline along three counties in North Carolina and two in Virginia. In comparison to Smith Mountain Lake, Lake Gaston is smaller, more affordable and more leisurely paced, says Arlene Enos, owner and associate broker of Lake Gaston’s REMAX Lakeside Properties. The location is very appealing, too, she says. “It’s halfway between Richmond and Raleigh, halfway between the ocean and the mountains.” Visitors can reach Lake Gaston in an hour and a half from both Richmond and the Raleigh-Durham area.

Another draw, says Almira Papierniak, executive director of the Lake Gaston Chamber of Commerce, is the “pretty and pristine” water, which appeals to those who enjoy boating, swimming, water skiing and jet skiing. Papierniak adds that the fishing is terrific, and that Lake Gaston has played past host to the ESPN Bassmaster Elite Series. Also on her list of pluses are “all kinds of outside activities, local theaters, wonderful restaurants with waterfront dining, public boat ramps and lots of social clubs.”

Enos says that Lake Gaston is “an incredible investment, mainly because if you look at all lakes across the nation, we probably have the best prices. I think we were discovered a little later than some of the others.”

So what can buyers expect for, say, $300,000? Answer: quite possibly the lake house of your dreams or even the water view of your dreams – but probably not both. “The water is the main draw, of course,” says Enos. “When I talk about ‘perfect water,’ I mean an ideal view with wide water where you can walk down to the water, get in your boat and go. That’s what everybody wants.” She says that for $300,000, buyers can expect a nice house with water that’s not perfect, or perhaps a lot with perfect water and a double-wide trailer.

Let’s talk about $500,000, then. “Let me give you an example,” says Enos. “I recently listed a house for $499,000. It’s a three-bedroom, 2-bath with 2,284 square feet but the water’s not perfect because it’s in a cove. But it’s a nice second home for $500,000. Or you could have a really nice lot with a house that’s not as great.” Her final assessment? Buyers should expect at least $300,000 and as much as $2 million.

Jo Lord is a freelance writer and baby boomer who lives and works out of her little bungalow in Richmond, Virginia. Her work regularly appears in numerous publications around the city.