From The Detroit News | By Ken Calverley and Chuck Breidenstein
DETROIT, October 17, 2024 ~ Imagine a floating home.
No, this is not a backhanded reference to the recent events in Florida.
Nor is it about motorized yachts or houseboats.
We are talking about a trend to construct homes with relatively permanent anchorages on floating platforms.
The scarcity of conventional building lots, especially in demand areas, is helping to drive this phenomenon.
Floating homes are likely to be purchased through real estate agents but are often defined and bought as a separate asset from the moorage where they are located.
October 8, 2024 ~ Chuck “The Inside Guy” Breidenstein and Ken “The Outside Guy” Calverly offer the knowledge and resources you need to make the home of your dreams a reality.
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Although the home is attached to utilities such as electrical, sewer and water, the actual space they occupy on the harbor front or river where they are anchored is as well defined as a piece of earth but may be simply rented or purchased as a condominium.
Some defined water spaces were considered a steal two decades ago at $100,000 each.
And while you have no lawn or plants to maintain, many such properties are sold under the mandate of a Property Owners Association that dictates everything from house specifications to care and maintenance of common areas including parks and parking.
Another interesting tidbit to consider is that, while floating homes might be mortgaged much like a conventional home, the structure itself is not typically subject to real estate taxes.
Note that mortgage lenders for these properties are currently few and far between since the houses do not meet typical lending requirements as homes.
Federal Housing Administration, FHA, and Veterans Administration, VA, loans are not currently financing options for these properties.
Carry-back financing by current owners is more common, or the home may be financed like an RV.
Whereas most typical homes gain value over time, these homes may actually depreciate, so buyers are cautioned to make certain they are dealing with experts that also provide thorough physical inspections of the home above and below the water line.
Floating homes are found throughout the world and this country, from South Carolina to Texas and virtually any other coastal state.
One classic distinction between a houseboat and a floating home is the issue of a built-in engine, which a floating home will not have.
The platforms they rest on may be constructed as a floating barge-type hull or, similar to the floating rafts we find on many lakes, will be aluminum or wood frame buoyed by either foam blocks or air-filled barrels.
Design and construction on top of the platform typically resembles standard frame construction, though steel or aluminum studs may replace treated wood.
Although tiny home concepts influence a lot of space design, you can also witness expanded plans of multiple stories.
As with conventional homes, roofs are built based on the local environment from rainy Seattle to sunny east Texas.
And, of course, weight is a real consideration, so good design considers strength and density of materials, as well as issues pertaining to the wetter environment in which the home is likely located.
Unlike houseboats, floating homes will typically fall under the local building code, so items such as stairwells, handrails, egress, bracing and wind loading must be addressed as you would with a normal home.
Some investors are turning to floating homes as rental properties in demand areas, but they are cautioned to fully know and understand local rental laws as they may apply.
It also bears noting that overstressed markets such as New York City or the California coast have seen prices soar due to demand while the mooring costs are appreciating at the same rate.
The popularity of floating homes has also intensified pressure for more regulation as buyers seek to protect their investments.
Insurance issues loom large as the popular locations often place the homes in jeopardy of weather-related damage or destruction, so buyers must exercise strict caution in purchasing and understanding coverage options.
Like other construction types we have discussed, floating homes are a choice for some, but not all.
And, as with any housing endeavor, you are advised to take advantage of professionals like those you can find every day at InsideOutsideGuys.com.
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For more advice, listen to “The Inside Outside Guys” every Saturday and Sunday on 760 WJR from 10 a.m. to noon or contact them at InsideOutsideGuys.com.
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