It’s a well-known fact: Cottage living doesn’t get much better than here in the Muskoka region. While cottage prices have definitely increased over the years, mortgage rates remain low and there’s a great selection of available cottages – from tiny cabins to sprawling estates and everything in between. If you’ve dreamed about buying a cottage long enough and you’re ready to make your move, we’ve got 4 tips to help you make the best choice for you and your family and ensure the process runs smoothly. After all, a cottage is all about rest and relaxation, so let’s make sure your bases are covered from start to finish.
Get pre-approved
Don’t assume you’ll get the same mortgage term or interest rate on your cottage that you have on your home. Lenders or banks may treat recreational or second properties differently than a primary home purchase. Also, pre-approvals are important to gain a solid grasp of the many expenses involved with cottage ownership so that you don’t find yourself in over your head financially.
Do a LOT of research
A cottage is much different than a home, especially if you’re only used to big city living or don’t have familiarity with this type of property ownership. For example, you’ll need to know about septic and sewage systems, winter access, shore allowances, docks, boathouses, and local by-laws governing the area. You’ll also need to find out what any additional fees and expenses may be, as well as the resale value and possible environmental protections to be aware of.
Work with professionals
Don’t have a Realtor yet? Buying your first recreational property is no time to call on your second cousin Joey who’s new to the business. For example, you need to know the best time of year to buy, have a carefully-drafted purchase agreement and be confident that the best price has been negotiated.
Working with a pro team also includes your home inspector, contractor (if needed) and real estate law team; be sure to work with experienced, local experts with good references who know the specifics of cottage ownership and municipal regulations.
Renting it out?
It’s not always easy to get up to the cottage every weekend, so renting it out for part or most of the year can be a great financial opportunity. Don’t forget that you’ll have to claim those earnings as income on your tax return and secure additional insurance. To help with the cottage rental process, you can retain the services of a local maintenance or property management company. Here at Ares Law, we’re the local, experienced professionals you need for your dream cottage, condo or home purchase. Our specialty is real estate law in Bracebridge, Gravenhurst, Port Carling, Huntsville, and the surrounding Muskoka region. We’ll work closely with you to help your purchase run smoothly so that your dream Cottage becomes a reality. Call today to book your appointment at 705-645-8743; we look forward to working with you!
