Welcome to this month’s installment of Dear Urbaneer, where I answer real estate questions from both clients and followers. This time, I am helping a dwell seeker who is considering purchasing a waterfront property.
Dear Urbaneer:
It’s my dream to live facing the water, whether a lake, river or ocean. I’m drawn by water views and the lovely, peaceful experience that the waterfront provides. I am thinking of purchasing land to build a waterfront home (or buying an existing home to make improvements upon) – for a part-time, vacation residence, and later move there when I retire. However, I want to make a prudent purchase, and I expect that there are additional considerations when buying something on a body of water. What do I need to know?
Dreaming of Water Views
Here is my reply:
Dear Water Views:
Thank you for your question. It resonated with me because I know firsthand the power of living near water. Growing up in Victoria on Vancouver Island, BC, my childhood memories include my fascination with the diverse sea life in the tide pools next to the boat ramp at Cattle Point, as well as eating fish and chips on Willow Beach, near the marina where I learned to sail. At the time, I didn’t know the omniscience of being present in an elemental landscape attuned to a tidal rhythm peppered with notes of windsong, nor that the unique conditions of ocean islands – comprising nature’s trilogy of earth, air and water – are said to improve our metaphysical balance. I would discover this later, when I purchased The Black House in Charlottetown, Prince Edward Island, with one of my best friends in 2008, which I still enjoy to this day. Since then, I’ve learned that there is a significant amount of research on the positive mental and physical health benefits of frequent interaction with blue space. Exposure to water (or blue space) is a multi-sensory experience. It’s calming and encourages self-reflection. The sounds of running water or waves are inherently soothing and are often incorporated into soundscapes designed for relaxation and meditation.
However, from a real estate perspective, if you’re considering purchasing a property that has a shoreline, several considerations should be part of your due diligence to ensure your purchase is prudent. Below are some of the factors to clarify.
Water Rights
You may be dreaming of docking a boat right outside your front door, but it’s imperative you understand that you don’t automatically enjoy this right when you purchase a waterfront lot. Typically the lot line ends before the shoreline, so technically, you don’t own the water’s edge and the as-of-right to build a dock.
In Ontario, waterfront property owners generally have Riparian Rights (reasonable use and access to the water), but do not own the beach/shore outright. (See Beds of Navigable Waters Act, R.S.O. 1990, c. B.4). Property owners who want to fill shoreland, remove vegetation, or install a dock are required to get approvals and permits from the Ministry of Natural Resources and Forestry.
Beware the Shoreline Road Allowance
From the 1850s through 1900 in the Province of Ontario, surveyors surveying Crown lands often dedicated strips of land along rivers and lakes in favour of the provincial Crown. These strips of land – typically 66 feet wide and called a Shore Road Allowance (SRA) – were initially set aside for emergency access and transportation during the logging era. Most of these allowances, as a result of the governing municipal legislation of 1913, are now owned by the municipality in which they are situated, though there are instances where the Crown retains ownership. Often undeveloped, for decades cottage owners often treated the Shore Road Allowance as their own. However, when the use of snowmobiles and ATV’s for recreational use became popular in the 1970s, and organized groups began using SRA’s as a public right of passage, the only means to regain quiet enjoyment was for cottage owners to purchase their adjacent SRA for their exclusive use. For Buyers completing their due diligence, a “closed” SRA means the adjacent property owner has purchased the allowance, which becomes part of their land. This purchase is documented in the property’s legal description. Conversely, an “open” SRA remains Crown land, which means the municipality or the Crown retains ownership.
A cottage owner must purchase the Shore Road Allowance in order to improve or develop the land near the shoreline. However, even owning the allowance doesn’t mean you can build freely on it. According to Section 5.9.2 of the local zoning bylaws, no development or alterations are allowed within 30 meters (98.4 feet) of the high-water mark of a lake or river.
Private Or Public Road Access
In Ontario’s cottage country, it’s not unusal for a collection of cottages surrounding a lake to share access via a private road. When this is the case, it’s important to understand whether the private road is accessible year round or seasonally, who is responsible for its maintenance & repair, if an annual fee is payable, and whether the private road can continue in perpetuity or for a specific period of time.
Privacy Expectations
If you are located on a shoreline which the public can access, privacy can be an issue, both when you are using the waterfront located in front of your home, as well as when you are inside your home.
It’s not necessarily a deal breaker for most folks, but it is something to be aware of to temper expectations. If this is the case, keep in mind that at night if any of your interior lights are on and your window coverings are open anyone walking on the beach looking up at your property may see you and yours inside. Your unobstructed view may also be theirs.
Elements of the Shoreline
It’s important to assess what the shoreline and beyond is like to ensure it complements your objectives. For example, are you purchasing on the waterfront so your family can swim, build sand castles, or so you can dock your sailboat? The geography and topography of the shoreline and beyond can impact the usability of the waterfront. Does it matter if it’s weedy, rocky or sandy? Must it be deep or shallow? Will you need to engineer your shoreline with rocks and other structures to maintain its sturdiness and protect it from erosion? For example, a gradual, sandy shoreline is the most family-friendly. Marshy and highly vegetative shorelines have an ‘ick’ factor that make it difficult to access so you may require additional structures (i.e. ramps or boardwalks) to reach the water.
If you are on the ocean, you’ll be subject to tides and a greater likelihood of weather events that may erode and change your shoreline over time. Similarly, if you are on a river, which usually has stronger currents, erosion will also be a factor for your shoreline. A river is often more affected by spring melts or heavy rains, so flooding may be an issue to consider, too.
On most bodies of water, maintaining the shoreline will be an extra cost for maintenance, so be sure to factor that in.
Water Rules
Do you dream of speeding up and down the waterways in your boat? Make sure that motor boats are permitted on the body of water you are looking at. Also, identify speed limits, any noise regulations or rules around the size of watercraft allowed on the lake or river.
Water Quality
Water quality can impact your plans for boating, swimming, and fishing. For example, high algae blooms or the presence of E. coli might irritate your skin or even make you sick. Similarly, polluted or poor-quality water may emit unpleasant odours and can make swimming and boating less pleasant, as well as affect the variety and edibility of fish. Moreover, consider that the presence of excess vegetation can make waterways more challenging to navigate.
As I discuss later in this blog, it’s also essential to verify the quality of the well water if the property is not connected to municipal sewer lines.
Building New
Suppose you’re purchasing a site with the intention of building a new waterfront dwelling, which may include replacing an existing one. In that case, your due diligence should account for site-specific challenges such as flood risk, strong winds, and unstable soil. You’ll also need to determine the local zoning and environmental regulations, as well as any setback restrictions for building near the shoreline.
I have a friend who bought a spectacular cottage outside Toronto, perched on a waterfall. That structure could not be built in that location today due to environmental restrictions; therefore, if it were to burn down, it would have to be relocated further from the river. They’re also restricted from expanding the structure, so be cautious with your assumptions.
Additionally, building a waterfront dwelling is often more expensive because it usually entails more complex construction logistics, such as specialized site work. If it’s in a more remote location, your labour and transportation costs are likely to be higher.
Account for Higher Operating Expenses, More Maintenance Costs & A Greater Risk Of Damage
Be aware that a waterfront residence may have higher operating expenses because of its exposure to the elements including prevailing winds. It may also have more maintenance costs because higher moisture can accelerate dampness and damage and, if you’re on the ocean, steer clear of materials prone to corrode quickly.
Furthermore, coastal regions are more prone to unexpected weather events, so it’s important to determine what materials are strong and have longevity, and all properties on or near water face the increased possibility of flooding so take this into account. Insurance companies often require you to carry additional flood insurance for an added premium, and in some instances they may not provide insurance. Know this before you make a purchase because you may not be able to place a mortgage on a property that cannot be insured.
Flood Risk
Obviously, flooding is a greater risk when you are on the waterfront, and in some cases can be catastrophic, causing your property to lose value, with climate risk having a significant impact on real estate.
How do you know if your area is prone to flooding? It can be hard to get a definitive answer. This CBC story Are You Buying A Flood-Prone Home? It’s Hard To Find Out discusses how flood zone maps in Canada are largely out of date, in part because of swift and frequent changes to topography, thanks to more ferocious storms.
I wrote about a climate risk and real estate value tool here: A Climate Risk Assessment Tool Is Now Available For Canadian Homebuyers & Homeowners. It’s a practice commonly used in the United States on property listings, but it’s less available here.
It takes some legwork, but check with area maps published at the Federal (the NRC maps flood data), Provincial and Municipal levels. Conservation authorities can be good resources, as can insurance companies. Property documents and surveys may reveal if the home or land is in a flood plain.
It’s a good idea to check local media reports and talk to future neighbours to understand if flooding has been an issue in the past. Of course, this doesn’t predict the future, but it gives a fuller picture.
To mitigate potential flood damage, if possible, position your home high up and set back from the water.
Site Infrastructure and Zoning
Like with all other lot building, you need to determine what infrastructure you’ll have access to and what you’ll need to install. Are you on a well and septic? Is there municipal access to water and sewer? What about things like hydro, cable, telephone, cellular and internet access?
Similarly, what are the restrictions and zoning requirements around property improvements and construction?
Let’s end there for now, but feel free to reach out anytime.
And thank you so much for your thoughtful question!
– Steven
There is nothing quite as exciting as envisioning your dream home, except for perhaps having that dream home become a reality. But housing dreams are built more solidly on a foundation of due diligence, and with decades of experience and a deep, relevant knowledge of the housing industry, I’m here to help!
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Since 1989, I’ve steered my career through a real estate market crash and burn; survived a slow painful cross-country recession; completed an M.E.S. graduate degree from York University called ‘Planning Housing Environments’; executed the concept, sales & marketing of multiple new condo and vintage loft conversions; and guided hundreds of clients through the purchase and sale of hundreds of freehold and condominium dwellings across the original City of Toronto. From a gritty port industrial city into a glittering post-industrial global centre, I’ve navigated the ebbs and flows of a property market as a consistent Top Producer. And I remain as passionate about it today as when I started.
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