One of the main attractions of buying a property in Florida is the abundance of waterfront homes available for purchase by buyers seeking that perfect tropical residence with a spectacular view. Waterfront property can make for a good investment as it could have the cache of ‘rarity value’.

To demonstrate what I mean regarding rarity value, here are some interesting geographical facts courtesy of the Florida State Government website www.myflorida.com.  Florida State covers around 58,000 square miles.  The State has over 1,000 statute miles of coastline, 663 miles of this is classed as ‘beach’.  Of the 58,560 square miles that constitutes the State of Florida, over 4,000 miles of total area is classed as ‘water area’.  By looking as these few geographical statistics a buyer can render the notion that there are probably more non-waterfront homes sites than waterfront home sites, simply because of the quoted geographical ratios.  Therefore a waterfront home, in theory, could command a higher price due to rarity value.  There is only so much waterfront property available in Florida and man cannot ‘make’ any more.  Plus buyers need to consider the laws of supply and demand.  Many buyers are drawn to waterfront locations and as you can see, there are only so many homes that actually have this physical attribute.

Buyers interested in exploring the option of purchasing a piece of real property with a waterfront location should educate themselves to understand there are different classifications of waterfront that can affect the home’s value.  It would be fair to say that a home’s waterfront location and its’ consequent desirability, or rarity, is the key to why 2 identical homes may differ greatly in price.  On further investigation it will probably become apparent that one home sits on a more sought after waterfront lot, hence the price premium.

So what are the most popular definitions of waterfront in Florida?  Here is a summary of the various categories:

· Beachfront     Usually the most expensive type of waterfront property in Florida.  Not only does the homeowner enjoy magnificent views from their own lanai or porch, they have the added bonus of walking straight onto the sugar soft sands from their own front door.  Beachfront property has desirability; who would not want to live on the oceanfront given the choice?  Plus it has rarity value.  There is only so much beachfront property available in Florida for purchase as there are only so many miles of beachfront that are currently built upon.  Florida also has some tough rules governing beachfront development; therefore to build more homes to meet demand is difficult.  Add these 2 factors together and you have some of the most expensive real estate in Florida which can be a good investment.

· Riverfront     If you view a map of Florida you will see inlets of waterways or rivers that feed into the ocean surrounding the State.  A piece of property situated on a lot along a waterway such as this has the advantage of wonderful views, especially if the waterway is wide.  The home may also have great boating access, particularly if the home’s location is close to the where the waterway meets the ocean.  Homes classed as riverfront typically carry a substantial price premium that is generally driven by accessibility to the ocean, view and size of lot. 

· Canal Front     In Florida it is not uncommon to find that many of the coastal cities are set on canal networks that may join the adjacent ocean.  For instance, the Gulf Coast City of Cape Coral is famous for having more canals than the town of Venice, Italy and is very much a city set on water.  Canal front property can make for a more affordable way of purchasing waterfront property and can constitute a good investment, particularly if the home has top quality boating access to the ocean.  However, not all canal front lots are equal and what sort of canal the home site sits on can dictate the home’s value.  If a buyer is interested in purchasing a home on a canal, one of the questions to ask is does the home sit on ocean access water or fresh water?  If on ocean access water what sort of ocean access do I get?  These questions and their subsequent answers are important, especially if the buyer plans to boat from the property.  This is where the skills of a knowledgeable local buyer’s agent are very useful as they should be able to advise you on the best home location to suit your needs.

· Freshwater Lakefront    This type of waterfront location is usually found in developed gated communities or condo communities.  When the developer plans the community, they will usually include a lake of a certain size befitting the overall plan.  The developer will build homes or condos around this area, thus giving the eventual homeowner a waterfront view.  If the community has exactly the same home for sale with a lake view and with a non-lake view, it is fair to assume that the property with the lake view will be more expensive than the non-lake view as the developer will charge a price premium on the lake view lot.  Freshwater lakefront homes are a great affordable way for buyers to purchase a home with a view without breaking the bank.

I hope this page has answered some questions surrounding what constitutes waterfront property and the subtle differences.  As you can see not all waterfront property is alike!  Buyers interested in seeking out waterfront property in Florida are advised to engage the services of a reputable and knowledgeable Buyer’s agent in the area of interest to help them find the right property for their needs and budget.