Want to buy a cottage? Weigh the costs versus the rewards
The Victoria Day holiday has historically been “opening weekend” for many cottagers. It is also a time of year that sees a lot of turnover of vacation properties — whether north or south — which might make you wonder how you can achieve your dream of owning a vacation property.
With summer just around the corner, vacation plans begin to formulate. For many, this includes an extended stay at the family cottage. This article from the Financial Post gives a good background of information for those looking to purchase a vacation property.
Possibly the most important factor to take into account when looking to purchase a cottage is the mortgage. Lending terms and interest rates for "recreational properties" are different than those of a principal residence. It is always a good idea to consult a qualified Mortgage Broker to advise you on the different options available.
This article also explores the possibility of renting your cottage out while you're at home, giving your vacation spot the potential to be an investment property, and providing some tax benefits. Of course, it is essential to factor in maintenance and repair costs.
To read the full article from the Financial Post, click here.