A floating home is the perfect midway between life on a boat and life on dry land. It’s a more reasonable approach to ‘life on the water,’ many people have begun choosing summer homes like floating homes over buying a boat or renting a tropical bungalow. If you are into the idea of purchasing a second home as an investment and as a vacation spot for yourself, you might love the idea of floating homes.
Although many real estate investors might not consider floating houses a good investment, that’s not why you want to buy them. You are thinking about a life-long commitment, where you get to experience life on the water, and if things don’t work out long-term, you can consider using it to generate some income.
Regardless of your next home purchase plans, floating homes perfectly balance beauty and necessity. Wouldn’t living right on the water be great when summer comes along? It sounds like a great idea, and for some people, it is, but there are a few things to consider before fully committing to it.
- Living in a floating home
- Pros and cons of living on a floating home
- How much do floating homes cost?
- How to finance a floating home?
- Are floating homes a good investment?
- Floating home communities across the US
- Do real estate agents sell floating homes?
Living in a floating home
In case you’re tempted by a floating home, whether it’s on the ocean or a river, here are a few things to consider before packing up for the summer.
Experience it first-hand
Before fully committing to a life in a floating home, full-time, or just part of the year, you should know precisely what you’re getting into. Try renting one for a month or stay in a houseboat-themed hotel. Sometimes, floating houses can be cramped or damp, and while it may just take some adjusting, not everyone is made for a life on the water.
Do you have sea sickness or motion sickness? Comfort levels can go down in some cases when relocating to a floating home, and you have to know if that is something you can cope with. Extreme climate can affect you and your home more than it does on land, so be prepared for that.
Think about the location
Finding a location is essential to owning a floating home. What places have room? What are the fees? There’s no use building one until you find a location to put it, so weigh your options before committing!.
Living in a floating home can sometimes place you quite far away from the city or your workplace, so you must deal with long commutes. Taxes might also vary based on the location; remember that you can’t build a floating home anywhere. That is why location can be an essential factor to consider when seeking life on the water.
Build or buy? Weigh your options
How will you get your floating home? Are you aware of the costs of building a floating home? There are many options for building one, but size, space, and layout are essential. It can also be expensive to have a floating home custom-built, so if you are willing to forfeit a bit of freedom, you can buy one already built or staked out in a pre-existing spot.
Consider the safety of children and pets
Do you have children or pets? If so, consider how they might fear living near water. Teach your children to swim, and give cats and dogs a second thought if they’re not water breeds. Sometimes, the water surrounding your floating home may need to be tested for harmful bacteria such as E. coli. Think that decks can become slippery and dangerous to walk on, and stormy weather can damage your home and create a potentially threatening situation if you are outside.
Figure out transportation
We have already mentioned how commuting can be an issue for many floating homeowners as locations might not be favorable for fast commutes. In that case, you will have to figure out transportation. If you have a car, where will it go? If not, are there subway stations nearby? Bus schedules? Will you buy a bike or a Vespa? There are quite a few choices, but depending on the distance required for shopping, entertainment, and your job, your available options can dwindle.
Make adjustments to your belongings
Some of your belongings might be more prone to mold or deterioration in a wet and humid environment. No one wants to deal with any of those, so you must consider waterproofing your stuff. Do you have waterproof containers for documents, prized possessions, and emergencies? Invest in waterproof options for your clothes, food, and any other items that can be damaged by water or humidity. Many of these items can make living in a floating home much safer, so don’t neglect this aspect.
Downsize if necessary
Talking about belongings, do you have a lot of them? Floating homes are not famous for their size, and if you move from your house on land to a floating house, chances are you won’t be able to fit in all your belongings. If you plan on living in a floating home full-time, consider how much space you will have. If you have many belongings, this kind of life may not suit you, or you may need to rent a storage unit.When downsizing, you can still create a spacious design in your small apartment, but you can’t easily create more space. Consider the size of your floating home before relocating, and think if you are willing to leave things behind to accommodate your new lifestyle.
Pros and cons of living on a floating home
Pros of living on a floating home
Saving on locomotion costs
One of the greatest advantages of living in a floating home is that, unlike houseboats, it doesn’t need a self-propulsion system or a motor. Therefore, building upwards or outwards is not an issue, as it doesn’t affect the cruising ability since it only needs to float. This also means that you save locomotion costs like gasoline. Also, sometimes, living near water could increase the property’s value.
Friendly environment
Floating home communities tend to be small, and everyone knows each other. This creates an intimate and friendly environment, which many find very enjoyable. There is always that tight-knit feeling.
Enjoy natural beauty
For nature lovers, floating homes are the perfect opportunity to experience more of the area’s natural beauty. Floating homeowners usually experience gorgeous sunrise and sunset views. The boat deck is the ideal place to watch local animal wildlife, and you can afford the luxury of enjoying water activities at your discretion.
Cons of living on a floating home
Low inventory
Being the homeowner of a floating house can be an exciting experience, but it does have its downsides. Everything has a cost, and living on the water is no different. Real estate openings on the water can be pretty scarce, and there is less inventory for these types of homes and fewer options for you to choose from.
Monthly bills
Floating homes are known for raising the monthly bill. With mooring fees, electricity, sewage, water, and other utilities, you look at a large amount you must pay monthly. Practical concerns you should consider as a floating house owner include sea or motion sickness. Weather, wind, and extreme climate affect floating homes differently than they would property on land.
Vulnerability to extreme weather
The damage they might cause can be devastating if the house is unprepared to face these weather conditions. Values-wise, you are looking at a property that doesn’t scale well over time since water causes faster deterioration. Maintenance is vital to keeping your floating home neat but comes with extra costs.
How much do floating homes cost?
When you’re looking into buying a floating house, there are a few costs you’ll want to keep in mind. First off, the price of the house itself can vary widely, ranging from around $35,000 to over $1 million. On top of that, if you need to secure a slip in a mooring, that’s another expense to factor in.
It’s also worth considering the ongoing costs of owning a floating home. For instance, if you add more stuff inside, you might need to add more flotation underneath to keep it floating correctly. And if the siding gets damaged, you’ll need to repair or replace it to maintain the house’s integrity.
Don’t forget about the monthly HOA fees and any rental fees if you’re renting a slip. All these costs can add up, so it’s crucial to crunch the numbers and ensure they fit within your budget before taking the plunge into floating home ownership.
How to finance a floating home?
Securing financing for a floating house can be more challenging than traditional homes. You’ll have to hunt down a lender who deals explicitly with floating homes, not just regular ones on solid ground. Unfortunately, floating homes don’t qualify for government-backed loan programs like Federal Housing Administration (FHA) or Department of Veteran Affairs (VA) loans.
Lenders willing to finance floating houses might require you to jump through some extra hoops. They could ask for a bigger down payment, charge higher interest rates, or demand that the house be in tip-top shape before approving a loan.
If you’re eyeing a floating house and need a mortgage, it’s wise to chat with a Home Loan Expert. Only some lenders offer financing for floating homes, and these experts can point you toward the ones that do.
Are floating homes a good investment?
Owning a floating home offers a distinctive investment opportunity. While these unique abodes can indeed appreciate in value over time, selling them might require a bit more patience. This is because floating homes cater to a specific niche market, and not every prospective buyer is in pursuit of alternative living arrangements.
Nevertheless, floating homes present a compelling option for those seeking affordability without sacrificing comfort. Typically priced lower than their land-based counterparts, they can serve as a strategic investment avenue for certain individuals.
However, it’s crucial to consider your long-term plans before diving into ownership. If your intention involves residing in the floating home for only a brief period and then selling it for a profit down the line, opting for a traditional house might be the wiser choice. Traditional homes generally offer a more predictable resale market and may yield higher returns in shorter timeframes.
Floating home communities across the US
Living in a floating home has a unique charm. Imagine seeing ducks and herons outside your bedroom window, then starting your day with a peaceful kayak ride on a calm lake. And when it’s time for work, just hop on the metro! Floating communities in urban areas offer the perfect tranquility and city life blend.
While living by a serene lake or river in the countryside sounds appealing, sometimes being close to the city’s vibrant energy is necessary, especially for work. Thankfully, many cities offer floating homes, giving you the best of both worlds.
1. Sausalito, California
Sausalito is famous worldwide for its floating home community. You’ve probably heard Otis Redding’s song about it – it’s pretty sad, right? But did you know that many celebrities, artists, and writers have called these floating homes their own? People like Shel Silverstein, Robin Williams, Bill Kreutzman, and Isabel Allende have all lived here.
In the late 1800s, these floating homes were a getaway spot near San Francisco. After World War II, dock workers used scrap materials to build affordable housing in the bay. Later, hippies and free spirits were drawn to the area, crafting their whimsical floating homes. Sausalito still has its unique charm today, but living here might be a bit pricey for most struggling artists and creatives.
2. Seattle, Washington
Did you think living in a floating home would be cheap? Well, think again about whether you’re eyeing Lake Union or Portage Bay in Seattle. The gorgeous floating mansions here typically start at $1 million and climb higher.
Seattle has a rich history of houseboats and floating homes, boasting one of the oldest floating home communities in the US. Initially, these homes were crafted from salvaged lumber by logging and fishery workers. Conveniently situated within the city, Seattle’s floating home communities offer easy access to shops, businesses, and public transport. To catch a glimpse of Seattle’s vibrant houseboat scene, just watch the classic 1990s film Sleepless in Seattle.
If you’re interested in this kind of living, real estate agents in Seattle WA, can assist you in finding the perfect floating home in this beautiful city. They can share valuable insights about the rules and regulations of owning a floating house so that you can avoid any unexpected situations.
3. Fort Washington, Maryland
Naturally, this town by the Potomac River, the fourth-largest on the Atlantic coast, attracts folks who love the water and want to be close to the U.S. capital. The Fort Washington Marina is a top spot for floating home living. Movie buffs might recognize it from the 1950s film “Houseboat” starring Sophia Loren and Cary Grant. The marina is open from May to October, with over 200 boat slips and brand-new docks for boats up to 60 feet long. If you’re considering becoming a boating family, Fort Washington is the place to be.
4. Portland, Oregon
Portland boasts the nation’s most extensive floating home community, encompassing approximately 1,400 floating residences scattered across its waterways. These charming dwellings line the picturesque shores of the Columbia and Willamette Rivers, offering residents a serene waterfront lifestyle just a stone’s throw away from North Portland’s vibrant speakeasies and eclectic food carts. Moreover, Oregon’s advantageous lack of sales tax presents an enticing benefit, allowing prospective floating homeowners to save a significant sum upon purchase.
5. Key West, Florida
It’s all about that island life down in Key West, Florida. With floating homes scattered along the Gulf of Mexico, residents here get to soak up tropical vibes, epic sunsets, and a laid-back maritime culture that’s hard to resist. It’s like living in a perpetual vacation spot.
Over the years, the floating homes community in Key West has been growing steadily. With around 100 homes now, more and more people are getting interested in this unique way of living. Real estate agents in Key West FL, have noticed this trend as more buyers are drawn to waterfront properties, increasing the demand for floating homes.
Do real estate agents sell floating homes?
Floating homes are usually sold with their slips and sell a lot like regular houses. Real estate agents list the property for sale as they would with any other land-based residence. You can often find floating home listings on platforms like Zillow, Realtor.com, or other consumer-facing real estate information sites in cities where floating home communities have been formed.
If you’re considering buying a floating home, it’s wise to find the most reliable real estate agents near you. They will help you find the right property, explain all the laws and regulations involved, and handle all the paperwork. Each state where floating home communities are established has its own laws and regulations, and being familiar with them will save you a lot of trouble in the long run.
Conclusion
In wrapping up, imagine waking up to the gentle sway of the water, the sound of seagulls echoing nearby, and the warmth of the morning sun kissing your skin. That’s the magic of living in a floating home – a perfect harmony between the serenity of waterfront living and the comfort of home.
Sure, some might raise eyebrows at its investment potential, but to me, it’s not just about numbers on a balance sheet. It’s about the memories made, the friendships forged in close-knit communities, and the sheer joy of living life on your own terms.
Of course, there are practical considerations to mull over – like finding the perfect spot, ensuring safety, and managing costs. But isn’t that part of the adventure? The anticipation of exploring new waters, both literally and metaphorically?
For those willing to embrace the unknown, floating homes offer a chance to escape the mundane and dive headfirst into a world of endless possibilities. So, if you’ve ever dreamed of living on the water, why not take the plunge? After all, life’s too short for regrets, and the best stories are written by those bold enough to sail uncharted seas.
This article doesn’t seem to me to be grounded in fact. What home doesn’t pay sewer, water, electricity? I live on a floating home in Seattle and the cost is no different than anything else. The only added cost I have found is hiring divers every three years or so to check the floatation system (cost about $900). There’s no mold issue. It rarely moves and if it does it’s hard to notice. The house has only increased in value (as the ones around me). Living here is nothing short of perfection. Ovidiu, feel free to contact me if you would like to update your article.
Hi Stafford. I’m trying to buy a floating home in Washington and was wondering if you know any mortgage lenders that work with floating homes? Any help is appreciated! Looking forward to life on the water!!!
All is great until the marina owner sticks a huge boat in front of your house therefore blocking the view and reducing resale value by 40%