Whether you’re an experienced cottager or just starting to think about buying one, it’s important to be prepared for those additional expenses that can be unique to cottage life; some that are expected each year and some that aren’t. Your cottage is your oasis, and a significant financial investment too, so be sure to save for that rainy day (or in our case, snowy!) where you need to cover some cottage costs that you didn’t plan for.
We’ve outlined some of the top expenses for your cottage on top of standard items (such as furnishings, appliances, decorations, and tools) so you can crunch the numbers and make sure you’re prepared:
Ongoing & occasional expenses:
Property taxes – If you have a lakefront cottage, be prepared for hefty property taxes. Just like a residential rate, cottage tax rates depend on the size of the lot and the buildings, as well as other factors such as location and amenities.
Insurance and utilities – You’ll need insurance for your cottage (including liability insurance) which you can pay annually or monthly. Many of today’s cottages now have cable TV/streaming and Wi-Fi, and don’t forget about landlines, heat/AC and hydro.
Road access/winter maintenance & cottage association fees – Depending on if you use your cottage in winter and where it’s located, many cottagers have to pay for winter snow removal/road access. Other maintenance fees could include dock removal/installation, boat storage, marina fees, and septic tank maintenance. There are also cottage associations you may want to join, which have a fee attached.
Cottage security – Some cottagers pay for a security/maintenance company to do regular checks on their property, or you could consider getting a security system installed if you feel it’s needed.
Water toys & equipment– For many, cottage life means enjoy having a boat (or two) as well as kayaks, stand up paddleboards, floating toys, ATVs, fishing gear and so on. You’ll also need to factor in costs for gasoline, life jackets and boat licenses too.
Ongoing repairs – You’ll need to occasionally paint, repair and replace things in and around your cottage. If you’re handy, you can save money by doing a lot of it on your own.
Hosting – Plan on doing a lot of entertaining? Food, drinks, gas for the boat and extra utilities can really add up. If you’re comfortable asking people to contribute a few meals and BYOB, that can help keep costs down. A cottage is a special oasis, which is why it’s important to be financially prepared so that you’re not kept up at night worrying about those additional expenses. At Ares Law, we specialize in real estate law and it’s our job to help you crunch the numbers for your cottage purchase, including outlining all closing costs, taxes, and so on. Connect with our expert legal team today for your home or cottage sale or purchase in the Bracebridge, Huntsville, Gravenhurst or greater Muskoka area at 705-645-8743.
