Buying a Cottage in Ontario: Find Your Dream Getaway
The demand for cottages grew throughout the pandemic. Many urban dwellers were craving life by a lake and looking for more affordable property options outside of the Toronto real estate market.
Cottages also offer rental income potential, and some are even winterized meaning that the owner can live at or rent it out all four seasons. It’s important to understand the cottage country market before making the leap. Here are some tips and markets to consider when looking for your dream getaway.
Become Familiar With Your Dream Location
Regardless of where you decide to live, it’s best to get an idea of the area before you move. There’s a lot to consider depending on your situation and what you want to get out of a cottage.
Are you looking for a holiday home for yourself, or are you looking for somewhere with rental income potential? Location is also important. Canada is a very cottage-friendly country with a wide variety of locations and landscapes to choose from, so you should think about what kind of activities you like or what kind of environment you want.
It’s also important to think about the potential risks associated with a cottage. Consider its accessibility during the changing seasons. Do you have a suitable vehicle to get to it? For example, some cottages can only be reached by boat. Also worth considering is the water treatment, whether it’s prone to flooding, environmental factors and internet or electricity access.
Some ideal cottage locations in Ontario include:
Muskoka - Located just two hours north of Toronto, Muskoka has been a prime vacation location for well over 100 years. It is vibrant with natural beauty and a plethora of pristine lakes surrounded by gorgeous forestation.
Orillia - Known as the “Sunshine City”, Orillia is located on the shores of Lake Couchiching and Simcoe and features dozens of beautiful lakes, golf courses, cycling trails and more.
Sauble Beach - Sauble Beach is a small area in the town of South Bruce Peninsula, along the Eastern shore of Lake Huron. Its main attraction is the long, sandy beach, which is accompanied by many recreational activities such as beach volleyball, and the multiple restaurants and entertainment venues close by.
Kawartha Lakes - The Kawarthas consist of over 250 lakes and rivers and is just 90 minutes north-east of Toronto. The lakes have many great canoeing and kayaking routes to be explored, and fishing and boating are popular activities too.
Understand the Financial Investment
As with any home purchase, you should begin with getting a pre-approved mortgage to understand what your budget is for buying a cottage.
Currently, Bank of Canada interest rates are rising and this could affect what your mortgage payments will look like, but it does not necessarily mean that your payments will increase.
As home prices have decreased in recent months, in some areas monthly mortgage payments are lower than many people expect. It’s worth remembering as well that aside from the actual cost of the property you must take into account potential maintenance fees, tax implications of owning a second property, and even things like travel costs (which could be affected by the location of your cottage).
Plan for Maintenance Fees and Insurance Costs
As part of the financial investment into buying a cottage, it’s important to factor in things like maintenance fees and insurance costs.
Cottage insurance, which will typically cover structure or property damage and personal liability, will need to be purchased, and the costs will depend on whether you visit the cottage seasonally or more regularly throughout the year as a secondary property. It will also depend on the location and the value of the cottage.
This is where thinking about the location becomes important - access to things like emergency services will impact the cost of your insurance. Whether you rent it out or not, the electrical system and how often the cottage is unoccupied will influence this too.
Preparing for potential flooding should be a priority when considering costs, as well as damage caused by mould, damp or other weather-related incidents. And don’t forget about unexpected visitors! While you’re away there’s potential for critters and other wildlife to use your space, so creating temporary or permanent measures to alleviate that issue is important.
Determine the Long Term Purpose of the Property
Determine what you want out of your cottage before you start looking. Are you looking to live here full time, part time as a second property or something you will only visit during particular seasons? As mentioned above, this will affect your insurance costs but also how much you will need to spend on other maintenance fees.
If you’re planning to rent the property out for additional income, you will need to undertake regular maintenance tasks like deep cleaning, doing inventory checks and safety audits. Depending on the season it will be available for rent, you may also need to prepare the property for different weather conditions.
Some people choose to buy cottages with other family members or friends. In this case, it’s a good idea to sit down and work out a formal agreement to determine who does what, considering things like agreed upon usage, determining the division of labour, and listing all tasks and responsibilities for everyone to undertake.
When buying a cottage in Ontario, it’s important to work with a real estate agent that will help you navigate the real estate markets in cottage country.
Whether you’re buying for yourself, with your family or friends, or purchasing an investment property, a real estate agent will answer your questions and guide you to find your dream getaway.
Zoocasa is an award winning brokerage that uses data and technology to deliver an intelligent, end-to-end real estate experience. Its insights and suite of digital tools, combined with the market expertise of the in-house agents and brokerage team allows it to set a new standard for full-service real estate in Canada.
