Thinking of buying a cottage? There are many reasons why urban dwellers are snapping up property in the great Canadian north. Whether you’re nostalgic for the lake-side days of your childhood, hoping to leverage rental income potential, or looking for options outside of the Toronto real estate market, buying a cottage can be a great option. But it’s important to look before you leap into the cottage country market. Check out these five tips before beginning your search.
1: Get to Know Your Dream Location
You may think that you want a lakefront cottage right on the water’s edge. But consider the risks: is this area prone to flooding? Is the lake full of summer visitors? Is that cottage in the woods accessible by any car or do you need a four-wheel drive vehicle to get in? Will you have easy access to grocery stores and emergency medical facilities? All of these are important points to consider when you search for the ‘perfect’ cottage.
2: Are You Financially Ready?
You should still look into a mortgage pre-approval before buying a cottage, the rate and amount for which will depend on what you have saved for a down payment, your income, and your credit score. You can start looking once you know exactly what you can afford on your budget.
3: Understand the Maintenance Fees and Insurance Costs
Beach homes in the south can be directly in the path of hurricanes, and that can make it more costly to insure the home. As well, if your cottage has manicured lawns and topiary bushes, you’ll have to pay for your own maintenance or landscaping services.
4: Consider Your Lifestyle
Are you seeking quiet solitude, or a social home where your friends, neighbours, and family will congregate? This will affect both size and location. Research your rental options and book a temporary stay in the areas you are interested first to get a first-hand experience.
5: Will You Rent Out Your Cottage?
Renting your property can earn extra income to help fund your mortgage, create a renovation budget or simply add to your savings account. If you’re considering renting your cottage, be sure to check out listing options that safely market your home such as CanadaStays, which can connect you with millions of travelers by listing your property on their online marketplace, and with a secure payment platform that ensures payments are easily and safely managed.
Would you consider purchasing a cottage instead of a city property? Let us know!