Thinking of buying a cottage ??

[Bernie]

I can see Dans point of view. But I cant wait to get back to the cottage at any opportunity to get at the next project or to sit on a deck chair and watch the scenery. My place is on an island and would not want it any other way. But having access all the time may be better for some. My place is old (built in the late 1920's) and lacked maintainence for many years before I inherited it. So its a labor of love. I know some of my neighbor's who have much nicer places than mine have rented for over 3 grand a week in peak time in summer. That was done through rental agency. I believe insurance rates may be different when you rent out but not 100% sure. You may want to check on that. If you buy one be prepared for doing some repairs or upgrades to the building and don't forget about water and septic. Good luck in your venture.

[Norpiker]

I can see Dans point of view. But I cant wait to get back to the cottage at any opportunity to get at the next project or to sit on a deck chair and watch the scenery. My place is on an island and would not want it any other way. But having access all the time may be better for some. My place is old (built in the late 1920's) and lacked maintainence for many years before I inherited it. So its a labor of love. I know some of my neighbor's who have much nicer places than mine have rented for over 3 grand a week in peak time in summer. That was done through rental agency. I believe insurance rates may be different when you rent out but not 100% sure. You may want to check on that. If you buy one be prepared for doing some repairs or upgrades to the building and don't forget about water and septic. Good luck in your venture.

 

 

I thought about writing the exact same story. The only thing i would add is that all that extra work & maintenance around the place pays off in spades. I can safely say the price i paid and what i could have sold it for 3 years later would have been close to double the original price. Enjoy the 3 years with a cottage and when or if things change you can just look at it as a great investment with lots of great memories

Cheers,

P.

[brickNblock]

Quite a bit of good information on the topic has already been stated, both for and against.

I feel fortunate enough to say we made the right decision by purchasing waterfront and it doesnt neccessarily mean that you are confined to one body of water. By boat we are only 7kms from the BOQ but ...If we wish to make the hike..(comming soon).....we could do most of the Kawartha's all the way out to Georgian Bay via our same waterbody......that to us is a vacation!

As BigCliff said.....they dont make waterfront property any more.(generally)

It is our prime residence however and a very long drive to the GTA to do on a regular basis ....Winter driving can be a nightmare too....

As for appreciation....it can be slow but it is still real estate and normally a solid investment after your first 5 years but we've been enjoying watching some neighbouring properties selling after only a year of being here some 25-35% above what would have been the selling price 13 months ago.

Its a huge decision, purchase and cache of money........

Good luck on whatever it is you choose to do.

Only you know the path it took you to save that DP.

[Moosebunk]

I have a few friends with cottages. They spend all of their time at the cottage fixing it up, mowing the lawn, landscaping etc. No thanks. Give me a tent and I'll explore a hundred other places instead.

 

EXXXX-ACTLY.

 

Or, the very least, buy a piece of land, build a tent frame and an outhouse, and make a little getaway like TJ has done.

 

When I finally move south I'll likely be looking to join some friends with fishing camps. Hopefully, one in particular about 3 hours from Ottawa up into Quebec that has the only cabin on one lake and nearby access to about 10 more. Brookies mostly.

[LeXXington]

aaaah to dream.... I say save your money for your first house, your still young and a lot can change in a few years..

 

I remember 26, single, money in the bank, good job, and free time

 

Now in my 30's 2 kids, wife, house, trying to find enough time at the end of the day to dream about fishing.

[cityfisher]

Great Advice everyone !!

 

The one thing about buying a house in the GTA is ... Ill be paying 300-400k for a small townhouse and over 400 for a decent detached home..

im talking richmond hill/vaughn/markham... that means a HUGE mortage either once its built(if i buy new ) or quite soon if a buy used...

No way do i want a 300+ mortage considering i can live at home until after i get married( gimme 1-2 years and ill start considering it )

 

I could always leave it in my Crap mutual funds that return nothing

[Blue_Axela]

Unless you can find a good investment, your $50,000 will not be worth that much in 2-3 years time. So its very important not to leave that money in the bank and invest it into something.

 

You are right about the housing prices in the GTA. I bought a 300K condo downtown Toronto two years ago and its only 700 sq. feet. Thats insane...but at the same time you have to put your money on the market for it to be "worth" anything in terms of housing dollars.

 

Goodluck!

[squiggs]

My input on the topic and what i did when I had the same thought cross my mind when I was 25:

 

I Bought near Minden in 1997, 80K, now assessed at 140K, on the open market it would probably go for closer to 200K. It will be paid off in less than 8 years from now (HINT: bi-weekly payments). Small lake, year round road, winterized cottage. Since the original purchase I have drilled a new well, renovated the living room, built a deck and purchased 25 acres of vacant land directly across the road. The funds to do all of this have come from re-financing and taking advantage of the appreciation of the original purchase. I've never rented it for income either, that just spells headache to me.

 

Do I regret having no home to call my own in the city? Slightly, but the enjoyment I have had and will have in the future at my cottage more than makes up for that. I've been fortunate to have friends in the city that I can stay with for less cost than renting on the open market. So once the cottage is paid for, I'll be looking to buy in the urban jungle (I used my RRSP's for the cottage so I'm SOL on that front).

 

IMO, as far as a long term investment (10+ years) you can't beat real estate. For short term (if you want to own a home within 10 years) I would rent a cottage for vacations. Keep in mind that with the cost of urban housing you may be house poor with most $ going towards a 300K+ mortgage.

 

The market is a moving target. I would have thought prices would have stabilized before now but you keep hearing of price gains. talk to some agents or browse listings in the potential markets, they're your best source for up to date info.

 

It realy is a personal decision. If you're the kind of person who doesn't like being stuck in the city on weekends and you're going to use it consistently, it makes sense, I suffer withdrawall if I'm away from mine for more than 3 weeks.

 

Heading there in 4 hours. Cheers

jac

[bigbuck]

Wow, I'm weighing in on this one kinda late. I am a financial advisor and here's my take:

 

If you have $50k to buy a property in the next couple of years, stick to liquid (ie. cash) investments, don't buy equity mutual funds, those are for long term investing (5+ years). Things to look at are GICs, Money Market Funds, Bonds and the like. You MAY NOT make as much money but at least you will have the full amount with some interest. If you invest in stocks or equity funds, you are gambling, I can tell you horror stories of people who thought they can make a few extra bucks and ended up getting crucified.

 

No one has mentioned buying a small home and renting out a room or the basement to help offset the costs (nothing wrong with having someone pay your mortgage for you).

 

Another thing to remember is that real estate values are really high, if you are buying a home to live in, it's your home, not strictly an investment, if you own it for 20 years, you will most probably make money on it. A cottage that you will probably sell in a few years to make a down payment on a home, you stand to lose a significant amount of money if real estate corrects. Vacation properties get beaten up much more then residential properties - Remember that point.

 

Remember that a second property is subject to Capital Gains taxes, you can't move in for a year and call it a principal residence. You have to have it appraised before moving in to establish your Adjusted Cost Base on the place. Any monies made BEFORE moving in have to be taxed when you eventually sell it.

 

The point regarding a trailer is great. Why not, for a few thousand, you can pick up a trailer and for a couple of grand a year, you've got a place to go every weekend and fish.

 

LEXX, I'm with you, cash in my 20's, lots of fun, lots of time, now 2 kids, a wife, a home and no time to kill with a growing 'Honey-Do' list.

[OhioFisherman]

If your young consider this, interest on your home mortgage may be your biggest expense in life besides the actual cost of the home, it is nice to be able to cut that in half or more with a larger down payment, or have funds available for a safety net.

 

You never know what is going to happen down the road, having cash on hand can smooth bumps. Expenses, purchase price, taxes, maintenance of a cottage, vs rental income and time to enjoy it? Er and headaches, time for upkeep.

 

A vacant piece of land that you can camp on or put a trailer on may be a easier solution? Less expense up front and less money tied up in case the plans change? But a spot for the future? Just depends on your dedication to the plan I guess.

[brickNblock]

CityFisher.....

Where there is a dream there is hope Bud...

Paul..(OhioFisherman)..said it pretty good.

If you are young..???????

If you are.......and are serious about marriage in the next few years then Junior isnt neccessarily far off if not already here.

Buy close to work at the furthest distance your prepared to drive with comfort for both you an the missuss.

Perhaps you will be able to purchase a home at a decent price a little further from work then most but not so it will be troublesome to commute.

There are 'LOTS", available, 'NORTH' to soothe your need for something to 'Get Away From".at affordable prices where you could simply pitch a tent or build some sort of hunter camp as TJQ has. Having to sweat-work to make this idea comfortable /useable you may get a better idea of what you want later down the road.

Heck man.......some of these not to bad of places can be had for as little as $5K.....

Think primitive.......does it have water.(drinking)....is it good water or whats needed or do I bring it in.

Does it flood.IMPORTANT....

Whats the access to it...Public ...Private.........Seasonal/Year round.

Any neighbours.....talk to them about whats up!..are there hunters comming accross from crown land..mistakes happen...do they hunt with Bows/Guns?..you may half to mark off your parcel.

Ahemmm....Taxes..taxes..?????

Regulations..can you build a fire without hassle.

 

Again....Good luck with your decision..

You know what you had to do to save that D.P.

 

PS

I never gave a hoot to what others ever said about the capability of being able to move at a whim to your choice of water and not being 'Stuck' in one place vs PURCHASING A COTTAGE.

I'd make it quite sure that wherever it is that you may purchase holds enough FISH to keep you happy and boats are usually towed by trailers for when you wish to venture elsewhere.

If you ever purchase North...your never far from water anyway.

[Dara]

Hi Guys

long time no see

 

been busy with lots of things and just haven't been on here much

 

I do miss the place though.

 

This topic just begs me to jump in and say something. purely self serving but what the heck

 

It seems that I will have a house for sale soon that could fit in here.

It needs work. Sound building, but needs kitchen and bathroom upgrades.

I live too far away to do this myself.

 

now

 

heres the deal as to why I am bringing it up here.

 

Its on Scugogg Island and has deeded water access.

Walking distance to the marina.

 

why not combine a house with a cottage

 

ok, I'll move on to reading some other posts now. Sure hope there are lots of fish pics up

[martymonty]

You sound sooo much like me 10 years ago, of courses its a hugeee investment. We got the cottage when the kids were in there pre-teens, the values and memories are so much greater than any retun on my investment I could ever imagine, though property values have more than X4 appreciated. I do NOT rent, but I do let close friends and family enjoy the cottage whenever there is room, for a fraction of what it would cost to normally rent. The guys that use the cottage are ALWAYS there for cutting wood, fixing a dock or any maintenace or re-modelling needed. I get almost as much joy watching my friends kids grow up there as much as I seen mine. Now that my kids are older they are now starting to help with the seasonal chores needed as well as there friends. When looking for a cottage I used this criteria,, a lake big enoughthat you can fish in, swim in and boat in, but not too big that you can't canoe or paddle boat in, as well as within 3 hrs from home so we couldgo there for jsut weekends. A lot of work? sure, high taxes,,,,,,, yup...but if this is your thing you will be repaid many times over. I have so many memories from spending many x-mas weeks up there, cuttting our own tree in the bush, to taking late night swims and popping corn till well past midnight by a nice fire. We are sooooo fortunate to have "up north" there is no place like in in the world!! Am looking forward to going up in a few weeks for a poker weekend with the guys.....good luck!

[mdouglas]

If you're thinking about buying a cottage, here's a link to our advertisement:

http://www.youronlineagents.com/carledward...ng.php?id=67924

 

We have a 3 bedroom cottage for sale on Pigeon Lake (224K). As I'm sure you know, the fishing on Pigeon is great. The cottage is in great shape, the property has loads of privacy, year round access and great neighbors. We're selling because my wife wants to be on a deep northern lake instead of the shallow lakes of the Kawarthas.

 

We have some experience renting. The best thing about renting is that all of your expenses are a tax write off (mortgage interest, utilities, everything). Our total expenses last year were just shy of 9k. Our tax refund was close to 2k, so it cost us about 7k to own the property. Meanwhile, waterfront property has been increasing in value at 10-15%/yr. On a property that is worth 200k that's an increase in value of 20-30k. After the expenses, the asset has cleared about 15-25k. Over the long haul, investing is property is a cant-miss investment, especially waterfront with good access.