Waterfront Property--Look before you buy

Waterfront property is always in demand because there is only so much of it. If you considering jumping in and getting your feet wet, do a road trip and check it out in person. You don't need to be a millionaire to buy a piece of the coast or a shoreline on a beautiful lake, but you do need to exercise caution in which lot you choose.

• Buying Tips from Waterfront Investment Mentors:

1.) Walk the entire property. Look it over closely with a copy of the site plan or survey. Know what's on your land, what's on your neighbors land, where are the easements and utility tie on's, where are the septic fields, what are the building set backs, where are the roads, who maintains them, does the property have public or private water access, what are the zoning and building restrictions, etc.?

2) Will the land percolate (perc test) for the size house you want? Never buy a piece of land you can't build a modern house on, unless you want a camping/fishing lot.

3) Don't shop for a waterfront lot in just one development. Look at all other developments in the same area. Search realtor.com for any options you may be unaware of.

4) Ask homeowners who have already built a home what they think about the developer. Current homeowners will gladly tell you all the good and bad. Key concerns would be, do they like living here? Was the house built to your satisfaction? Has the community been developed as promised? What type of people live here?

5) Know what the economic growth of the town or county is. Who are the employers? What is growth and appreciation rate in the area? Generally, the chamber of commerce, your agent or the government agency in the area can help.

6) It is good to know the history of the development. The internet or local library can tell you what was on this land before it was developed. Was there a zoning fight with neighbors? What is the general feeling about this area?

7) Effects of Mother Nature. Find out when the last drought, flood or hurricane was. What did this property look like after the storm? You don't want to spend money for waterfront property and discover with every drought you bought waterview.

8) Finally, look for lots that already have a home on them. Instead of waiting to build, you may be able to buy now and create cash flow by renting it part of the year.

Just like making any other large investment, waterfront property requires due diligence unique to itself. Use common sense and a methodical approach before you buy to avoid drowning.