Think of how amazing it would be to have a spot to escape to so that you and your family could get away from it all, and just relax.
There was a huge increase in cottage sales during the pandemic as lockdowns prevented travel and offices shut down and shifted to remote work mode.
It was also difficult to rent cottages over the last few years as demand for rentals skyrocketed. In response, many people decided to buy their own cottages to enjoy and/or rent out to others.
The market has been challenging but with a bit of planning, buying a cottage is a dream that can come true! Here are a few points to consider if you’re thinking of purchasing your own little piece of paradise:
Know Your Numbers
The rules for financing a cottage are quite a bit different than mortgaging a home so make sure you speak to a mortgage specialist before you start hunting around for a cabin in the woods.
Mind Your Motives
Determine whether you’re looking for a spot to enjoy with family on the weekends, an investment property to rent out, or a retirement retreat that you can eventually move into and call home.
Location, Location, Location
Figure out how far you’re prepared to travel and whether or not you need year-round access. Once you’ve decided on a possible location, spend some time getting to know the area before you commit.
Rental Potential
Renting out your cottage when it’s not in use is a great way to cover your costs. Location is critical for renters so it’s important to be in a high-demand area that offers a wide range of amenities.
Co-Ownership
Purchasing your new getaway with friends or family means you can share the upkeep and expenses. Just make sure you agree on everything from day one so you can spend your time relaxing instead of arguing.
Fixer-Uppers
Renovating a “diamond in the rough” is a great way to get a foothold in the market. Major renovations often require permission though so make sure you’re familiar with local zoning rules and regulations.
Buying a home away from home is a huge decision so do your research, get your finances in order and seek professional advice before taking the plunge.
If you’re thinking about buying a cottage or any other type of recreational property but you’re not sure where to start, please don’t hesitate to get in touch so that we can plan out your next move!
