Once you’ve been to the Parry Sound or Muskoka area and experienced the magic of our cottage country, it’s hard to get it out of your head. Every day in this region there are people who come from across Ontario and beyond to look at available properties so that they can turn their cottage ownership dreams into reality. Are you about to be one of them? Congratulations!
As experienced real estate lawyers in this area, we love it when a property purchase comes together smoothly. It’s our job to help our clients ensure that their investment is well-protected, so we’ve outlined the top considerations to help you get from sitting on the fence about buying a cottage, to sitting on the dock!
- Are your finances arranged?
You may have your down-payment ready to go and the extra income to carry the cottage mortgage, but don’t forget about those extra closing costs such as property and land transfer taxes, inspections, and so on. You’ll also need to budget for regular maintenance and repairs, not to mention furnishings, utilities and cottage toys!
Getting pre-approved for your cottage mortgage is another good idea. Not only will you have a better idea about your future mortgage and interest rates, it may help you move a little faster if there’s an offer you want to put in. Talk to your lender and give yourself ample time to arrange financing.
- Are you in-the-know about cottage living?
Owning a Parry Sound cottage is naturally quite different from owning a house in a city or town. Similar to living rurally, there are unique considerations around septic systems, sewage, utilities, local wildlife, ecological protections, lakefront allowances, snow removal, year-round access, and so on. It’s important to do your research to find out exactly what type of cottage property you want to own and what types of regular maintenance will be required.
- Do you have a top-notch team?
Buying your first recreational property is no time to DIY important tasks and take on your own real estate negotiations/sales, home inspections or filing your own legal paperwork. It’s advisable to work with experienced, local professionals who thoroughly understand the world of cottage purchases. There are specialized by-laws and other regulations to consider; you’ll need a good Realtor, real estate lawyer and so on to have your back throughout the process!
- Do you plan on using it as a rental property?
Many cottage owners are happy to have the extra income from renting out their cottage to help offset their costs. It’s important to keep careful records, screen all potential renters, and get extra liability insurance coverage. When you rent it out, it’s a taxable income, so be sure to budget accordingly. If you don’t live close to your cottage or don’t have time to manage the rentals, you can always hire a local property management team to help you. Talk to your real estate legal team about your rights and responsibilities if you plan on renting your cottage.
As you can see, there are a few unique considerations to make before you buy a cottage or other recreational property. At Ares Law, we live and breathe all things real estate law, and we’re the trusted, experienced and local professionals you want on your side when buying in the Parry Sound, MacTier or Muskoka region. Connect with us before you buy and we’ll walk you through the process, inspect your purchase agreement, surveys and other documents, and help ensure the closing runs smoothly. Book your appointment with us – we’re here for you: 705-746-6444.
