Assuming money isn't an option, the decision for me would revolve around family and lifestyle. As the "baby" of the family, my siblings and their kids had already created their "summer lives" before we bought the first summer place in the family. As a result, they don't often visit, so it's nice to have the "party" already at camp when we arrive and the friends my kiddos have there are different--we've found there's a unique difference between "summer" friends and "regular" friends. We also very much like the activities--craft activities, Halloween in summer, bands, etc. as all as the amenities, such as tennis and basketball courts, horseshoes, playground, etc.
That being said, if we had started with older kids and had an extended family to share camp with OR I we seeking a more private, serene experience AND money wasn't an issue, I'd certainly look for direct waterfront.
A quick note on the last point, finances: knowing what I know and home ownership and maintenance, I would only pay the extra for waterfront if it wouldn't affect my financial freedom. Specifically, that the increased costs are legitimate extra funds; I'd be majorly stressed if I were second-home-poor.
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