Lake Home Prices – Through the ROOF!!!

iowa_josh wrote:

For someone not in this situation, how much are monthly payments and taxes on a 500k “cabin”?

Let’s say you put 20% down, which gives you a 400k loan at say 4% interest for 30 years. Mortgage payment would be $1910/mo. Taxes would vary by county, shoreline and location but roughly another $8k/year for that, and another $2k insurance, so that’d be about $1000/mo. So a grand total of about $2900 and possibly up to another grand depending on Taxes and insurance. Which isn’t much compared to the $100k Tritoon with at least one 600 HP Merc on it you’ll need for happy hour cruises!

My father was a firefighter, he bought a cabin on Bone Lake in Luck Wisc. on 3/4 of an acre for 3000 dollars-no I did not forget a zero.

BigWerm wrote:

<div class=”d4p-bbt-quote-title”>iowa_josh wrote:</div>
For someone not in this situation, how much are monthly payments and taxes on a 500k “cabin”?

Let’s say you put 20% down, which gives you a 400k loan at say 4% interest for 30 years. Mortgage payment would be $1910/mo. Taxes would vary by county, shoreline and location but roughly another $8k/year for that, and another $2k insurance, so that’d be about $1000/mo. So a grand total of about $2900 and possibly up to another grand depending on Taxes and insurance. Which isn’t much compared to the $100k Tritoon with at least one 600 HP Merc on it you’ll need for happy hour cruises!

A bit more for Ins. tax calcs are high for MN, about right for WI.

Can’t really put a $ amount on a sitting on the dock corking with a cold one watching the sunset though.

How far are you from water Dutch, if you don’t mind my asking?

3 miles to the nearest landing, 11 miles to VNP ramp.

Thanks. The reason I ask is that being in nice up north country but not necessarily ON a lake can be plenty nice too, in my opinion. I used to think that being on a lake would be the only thing acceptable, until a went to a buddy’s cabin in northern WI. He’s just miles away from about a dozen lakes but his cabin is off a dirt road in the woods, and it’s really quiet and peaceful. I think either would be great someday but both present good options depending what you’re looking for.

My taxes are $400 in Koochiching County

What is the price difference between a place on the lake and a place “close” to the lake?

On Rainy?

TheFamousGrouse wrote:

I don’t think it’s haves and have nots as much as it is the fact that the world has changed as a result of COVID.

A whole bunch of people and their employers out there have discovered that they can effectively work remotely. Some have even been told they won’t be returning to the office period or that the office will be downsized and it’s now just drop in and meeting space.

So a LOT of people and suddenly reconsidering where they want to live or spend a lot of time now that they are not chained to an urban area because of their jobs. They are either moving out entirely or they now don’t have to be at the office M-F so a cabin is a lot more usable because they can work from there.

The competition just got a lot greater for lake properties. Add in relatively low interest rates and it’s just bad luck/timing.

Grouse

Grouse hit the nail on the head. My wife and I can both work remotely for most of the year, say except for some bigger meetings that we’ve been required to attend in person. My wife’s company has already moved out of their old office and the owner of the company is building an addition to his home to act as his office/conference room. I was only going in 1-2 a month anyways so it wasn’t a big change for me.

We have been at our up north property for weeks now. We bought a Cobhan Explorer terminal. It gives us really reliable WiFi so we can work without fear of disruption. It’s expensive, but with us being here for weeks at a time it’s nice to be able to stream tv and run our devices.

Northern Wisconsin taxes are cheap unless you have a waterfront property, if compared to properties in Southern Wisconsin ateas.

Thanks. I didn’t realize so many of you guys are so successful. A lot of people are retiring early this last year and I suppose they create more demand as well.

toddrun wrote:

I happened upon a very nice lake shore lot, reasonably prices, and went down the road of looking to build also. Basic specs – 2500 sq/ft finished, 3br, 3ba, chalet style, with 2 car attached garage and 40×50 shed with cement floor, using medium grade materials, not top of the line but not budget. 5 bids, all about the same – $800k – $900k. STICKER SHOCK!!!!

No surprise to me at all. Building new has a premium price to begin with. The lack of production by many companies, excessive material draws has driven material prices up 10-35% – if you can even get some things.

Patience is key right now. Keep looking and be ready to pull the trigger as soon as you find what your looking for. Procrastination will cost you $$$$$

Home prices and cabin prices are being fueled by lack of supply, a good investment market, and historic low interest rates. As has happened several times previously…there will be a correction. Secondary properties are one of the first things to go when a money crunch hits.

We were looking at property near Madison, WI for my son to purchase – same situation. Houses getting 30-50 offers and selling for well over the already inflated listing price. We looked at several in the $200k-$250k range and to say they were nothing special would be an understatement.

Good luck!

Scott

Can’t really put a $ amount on a sitting on the dock corking with a cold one watching the sunset though.
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It is interesting that you mention sitting on the dock. I bought a place on the lake 10 years ago and figured it would increase my time in the boat exponentially. My time in the boat may have actually declined. I spend an inordinate amount of time on the dock. For me at least it may be the best place to unwind and relax.

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amen brother! owning a lake place takes alot of work, but it’s my kids most favorite place, no video games, no phones or ipads, just playing outside on the beach and fishing from the dock. The worst day of the year is taking everything out of the water (but you can hire that out)

ptc wrote:

Can’t really put a $ amount on a sitting on the dock corking with a cold one watching the sunset though.

It is interesting that you mention sitting on the dock. I bought a place on the lake 10 years ago and figured it would increase my time in the boat exponentially. My time in the boat may have actually declined. I spend an inordinate amount of time on the dock. For me at least it may be the best place to unwind and relax.
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Those summer pics just look so enticing this time of year!

if your dock allows it, I cannot recommend enough getting the dock furniture kits (rocking chairs with table) that mount to the frame sides of the dock. They are overpriced for 2 chairs and a table, but it will greatly add to your dock enjoyment time vs the standard wooden bench seat!

Prices are crazy high. We purchased a cabin/home on a lake back in 2013 and a home we passed on because we could not agree on a move in date recently sold for $150K(40%) more than what we offered in 2013. They pulled it off the market back then because it didn’t sell.
Being on the lake is great for views like this and of course the sand beach, but it also limits the number of lakes one fishes.

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gonefishin wrote:

Being on the lake is great for views like this and of course the sand beach, but it also limits the number of lakes one fishes.

It doesn’t have too. You just need two boats😉

My kids always enjoyed catching fish off our dock the most. After living on the lake there is no way we could live off the lake.

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Another option for you budget minded people is to find a spot on the lake that is not premium frontage. I live on a creek that goes into the lake. I never have to take my dock out, my taxes are half of what they would be if I owned premium frontage. I actually have a large yard to enjoy at 1 acre and way more privacy most of the year as the cabins / homes that are on my street are vacated most of the fall winter and spring.

Can I swim at the dock? – no. Is there fishing off the dock? Depends on the season- roughly 2-3 months out of the year is good to great the other 9 months mostly no.

But keeping your boat docked and jumping in it is priceless. Also the waterway in front of my house has no wake, no jet skiers or fast moving boats. And the scenery is awesome.

Dont pigeon hole your idea of lake frontage. There are plenty of good options out there if you keep an open mind and determine what is really important in owning on a lake.

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That’s a creek!!
Good idea though.

Netguy wrote:

That’s a creek!!
Good idea though.

…my thoughts as well

If that’s a creek, then living on a lake is nothing less than Lake Superior frontage

Our plan was always to retire on water in northern Minnesota but were never in a position to get 75% of what we wanted for what we could afford. After many miles logged we bought a 1.5 acre lot in Nevis. We’re actually on what’s classified as a river that connects Shallow lake to Lake Belle Taine. Like Bigpike’s situation we pay less taxes and enjoy much more privacy than folks on the main lake.
So we paid $60 grand for the lot and got to work. There were many days we’d leave early in the morning and cut down trees and go home the same day, 7 hours round-trip. Eventually we had a campsite established and it started paying dividends immediately. We had so much fun as a family! Kids building forts in the brush piles, cooking over a fire, what it did for us as a family cant be stressed enough.
So we got a nice class five driveway, a well and a 28X40 garage that was half cabin. Eventually we had a septic installed and put a Woodstock in. We paid cash for all improvements and after time it had become incredibly comfortable. FF to 2012 and we had the land paid for so we used the whole site to leverage a construction loan for a house. By now we had a great relationship with the builder. He didn’t submit a bill until almost 4 months into the 6 month time frame and only submitted one more before we converted to a conventional loan, he basically fronted the project.
We did a poured foundation and have infloor heat and a few other things that were important to us. We’ve done probably 80% of the inside work, mainly just Ann & myself with family and friends pitching in.

We now have a 3500 sq ft home in one of the nicest parts of the state in my opinion.
Our mortgage was $157,000 and we paid that off when we sold our home in White Bear Lake, which was the only house we’d ever owned.
Live within your means and be creative.

gonefishin wrote:

Being on the lake is great for views like this

That is a great pic there, Phil !

-J.

Ok. So technically I live on Sqwau Creek Flowage. I can see both ends of the “flowage” from my dock. It enters the lake through a tunnel big enuff for a 17′ -18′ boat or small pontoon.
Sucks to be me

Double post

Belletaine, I just wanted to say that your story about the place you’re at is awesome. Well done.

belletaine

Great explanation on what you and your family did. I may do something similar. I would rather have a place not on a lake but with more acreage in an area with a lot of good lakes to fish than be on a good lake that is crowded.

Netguy wrote:

belletaine

Great explanation on what you and your family did. I may do something similar. I would rather have a place not on a lake but with more acreage in an area with a lot of good lakes to fish than be on a good lake that is crowded.

We have access to 2000 acres of water from our dock but still have privacy, which is good, we get loud once and awhile 😉

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