Is It Better to Buy a Nicer House or a Better Lake?

This is the single most common trade-off dilemma I see with lake-home buyers. You have two properties at the same price point. One sits on a desirable, well-known lake with so-so shoreline and an average house. The other sits on a quieter, less prestigious lake with a recently remodeled, turnkey home.

Which one should you choose?

The Short Answer

Buy the better lake. Every time. The house can be changed, renovated, or replaced. The lake cannot.

The lake determines your daily experience: the water quality, the recreation options, the privacy, the views, and the community. It also determines your property's long-term value. You can remodel a kitchen, add a bedroom, or build a new deck. You cannot move a property to a better lake or change the shoreline.

The Worst House on the Best Lake

There is an old real estate adage: "Buy the worst house on the best street." It applies even more strongly to lake property. The worst house on a desirable lake is almost always a better long-term investment than the best house on a mediocre lake.

Here is why. A dated cabin on Gull Lake or the Whitefish Chain has built-in demand. The lake itself attracts buyers. Over time, you can improve the property. But a perfect house on an undesirable lake will always be limited by the lake it sits on. You cannot renovate your way to a better location.

When the Exception Makes Sense

There are situations where choosing the better house over the better lake makes sense.

• • You are buying for short-term use. If you plan to own the property for fewer than five years and want to enjoy it immediately without any work, a turnkey home on a decent lake may make more sense.
• • You cannot afford the renovation. Buying a fixer-upper on a great lake only works if you have the budget and timeline to actually make the improvements. If you cannot afford the work, the property may become a burden instead of an asset.
• • The "better lake" is not actually better for your lifestyle. A large recreational lake with heavy boat traffic may not be better for someone who wants quiet solitude. The right lake for you depends on how you plan to use it.

The Bigger Principle

Stop thinking of a lake home as a house that happens to be near water. Think of it as a lake property that happens to have a house on it. The value is in the land, the frontage, the shoreline, and the lake itself. The house is important, but it is not the primary asset.

When you evaluate a property that way, the decision becomes much clearer. If you have to compromise, compromise on the house. Do not compromise on the lake.

A Note on Shoreline

There is one important exception to the "buy the better lake" rule. A property on a great lake with terrible shoreline may be a worse investment than a property on a decent lake with excellent shoreline. Shoreline quality matters that much. A property with a steep, eroded, or mucky shoreline on a premier lake can be difficult to use and even harder to resell.

Evaluate the lake first, then the shoreline, then the house. That order of priority rarely steers you wrong.