Is Buying a Second Home on White Lake a Smart Investment?

Buyers ask me some version of this constantly: is a second home on White Lake actually a good investment, or am I just buying an expensive place to relax? White Lake sits in Muskegon County, Michigan, between Whitehall and Montague. It is a fair question, and it deserves a real answer rather than a sales pitch. I am a REALTOR, not a financial advisor, so I will not tell you what to do with your money. What I can do is lay out the factors that actually drive the answer, so you can weigh them against your own situation and, if it helps, your accountant's.

They are not making more lakefront. The supply of private frontage on White Lake is essentially fixed, and desirable waterfront tends to hold value well precisely because it cannot be replicated. A new subdivision can add a hundred inland homes. It cannot add a single foot of new shoreline. That scarcity is the fundamental reason waterfront has historically been one of the more durable segments of the housing market, and it is the strongest part of the investment argument for a well-chosen White Lake home.

A second home pays you in two currencies. One is the potential change in the property's value over time. The other is use: the summers, the family gatherings, the place your kids and grandkids come back to. That second return does not show up on a spreadsheet, but it is often the real reason people buy, and it is worth naming honestly. If you only want a pure financial return, there are simpler vehicles. If you want an asset that also gives you a life on the water, that blend is the actual pitch for a lake home.

Some owners rent their White Lake home part of the season to offset the carrying cost. That can meaningfully improve the math, but only where short-term rentals are allowed, and the rules vary by municipality around the lake. Underwrite rental income conservatively and confirm it is permitted before you count on it. (Here is what you need to know about short-term rental rules on White Lake.)

An honest investment view includes the carrying cost, not just the purchase price. Non-homestead property taxes on a second home, insurance and possible flood coverage, the seawall reserve, seasonal dock work, and upkeep all reduce the net return. None of this sinks the case, but leaving it out is how people overestimate what they are really earning. The buyers who do best treat a lake home like the investment-quality asset it is: they underwrite the full cost and buy the property that is sound. (Here is the full carrying-cost breakdown.)

There are tax factors on both sides of the ledger for a second home, from how mortgage interest and property taxes are treated to what happens with capital gains when you eventually sell. These depend on your personal situation and current law, which is exactly why this is a conversation for your accountant, not your agent. I flag the questions worth asking. Your tax professional gives you the answers that apply to you.

On the lake, the property you choose matters as much as the decision to buy at all. Frontage quality, water depth, the condition of the seawall and systems, the specific bay, and access to Lake Michigan all shape both your enjoyment and your resale. A generational lake home on solid frontage is a very different asset than a tired cottage on a shallow, weedy corner, even at a lower price. This is where a specialist earns their keep, by steering you toward the homes that hold value and away from the ones that quietly bleed it.

For the right buyer, at the right property, with the full costs understood and the lifestyle value counted honestly, a White Lake second home can be both a sound asset and one of the best places you will ever spend your time. For the wrong buyer, or the wrong property, it can be an expensive lesson. The decision is yours and your advisors'. My job is to make sure the property itself is one worth owning, and to give you the real numbers to decide. (Start with the full waterfront buying guide.)

• Waterfront's core strength is scarcity: private frontage is fixed, which is why it has historically held value well.

• The return is part financial and part lifestyle. Count the use value honestly, and know that pure returns come simpler elsewhere.

• Rental income can offset costs, but only where allowed, so confirm the local rules and underwrite conservatively.

• Include the full carrying cost, taxes, insurance, seawall, and upkeep, when you judge the real return.

• The specific property matters as much as the decision. A sound, well-chosen home holds value in a way a tired one never will.

• What You Need to Know Before Buying a Waterfront Home on White Lake

• The Hidden Costs of Owning a Waterfront Home on White Lake

• Questions to Ask Before Buying a Vacation Home on White Lake

Tamara Hekkema is a licensed real estate agent and REALTOR with Greenridge Realty, serving White Lake, Whitehall, Montague, and the surrounding West Michigan lakeshore. She is not a financial advisor, but she helps buyers choose the well-built, well-located homes that tend to hold their value. Weighing a White Lake second home? Let's look at the real numbers on a specific property.