Raycaster Posted April 5, 2015 Report Posted April 5, 2015 A lot of the members are close with resort owners and have been around a long time to see the ups and downs so I thought I'd post the question here. Retirement is a few years away but I always wondered if semi-retiring by purchasing a resort would be a fiscally responsible idea. I do know it would come with a lot of hard work with probably zero fishing but I've seen resorts further north going for the same price a some luxury single cottages. I also know most renters don't want to drive 5 hours either... I'm a trades guy and could handle the majority of upkeep etc. but what I'm really worried about is the taxes/insurance/licenses etc. Its the bottom line "money spreadsheet" I'm interested in. Are most resort basically just hard work and a break even situation? Thanks guys, yup know the maintenance problems, just would like some "Ballpark figures" on costs and pitfalls. Scare me all you want, hurt me with the truth!
frodobuggins Posted April 5, 2015 Report Posted April 5, 2015 I would think dealing with some of the clowns/drunks/jerks who might rent it out would be worse than maintenance.
Paudash Posted April 5, 2015 Report Posted April 5, 2015 We are looking into the same thing, the reason most fail is because of the mortgage people carry on them. If you are able to purchase it without going into debt you can make it work and live a comfortable retirement. If you have to carry a mortgage of any size on the property you are doomed for failure. Also when you do the numbers on any resort or summer rental property you need to realize that most places in Ontario are only rent-able for 7 weeks per year. Great idea and I am shopping now hopping to buy in the next 3-5 years
Steve Posted April 5, 2015 Report Posted April 5, 2015 quinte is the money location. almost 12 months a year rentals. Kawartha's are much tougher.
Shloim Posted April 5, 2015 Report Posted April 5, 2015 Something right on the snowmobile trails is helpful too from what Ive heard.
Big Cliff Posted April 5, 2015 Report Posted April 5, 2015 There are some good ones in the Kawarthas but location is going to be the key. There is a place on Sturgeon Lake (actually on the river coming out of Fenelon falls) that I think would do very well if it was run properly. They have a nice dock, lots of traffic an ice cream counter..... but I don't know how many times we have stopped in there to get fuel, ice cream, have a snack and they were closed. After about the third attempt you just quit trying. Friends of ours use to own Lunge Haven, they made a decent living at it but they worked 7 days a week 16 hours a day. Not quite my idea of retirement They sold it a couple of years ago because they were just worn out and wanted to retire.
Steve Posted April 5, 2015 Report Posted April 5, 2015 a very close friend of mine owns a resort on 12 mile lake....right on a snowmobile trail.... it helps....a bit....but certainly not enough to make the winter profitable.
vance Posted April 5, 2015 Report Posted April 5, 2015 If the place you are looking at has city water and sewer it would be perfect but if it doesn't and runs off lake water the stuff you have to do to your water and sewage systems is expensive.There are quite a few parks that have closed up because they can't meet the requirements for safe drinking water and a proper septic system. Vance
Old Ironmaker Posted April 5, 2015 Report Posted April 5, 2015 No one can suggest to you if it's a good or a bad idea unless they really know you. One prerequisite for that type of business is better than average customer services skills. I am the kind of person that most likely would be charged with assault dealing with some people. You have to be a saint when it comes to drunks busting all your stuff.
lookinforwalleye Posted April 5, 2015 Report Posted April 5, 2015 I know 2 people who had the same dream...one for the Parry sound area the other in the Gravenhurst area both did not last very long both ended in bankruptcy and divorce...my advice would be to research the hell out of it and if you decide to go a head with it sit down and research it again!!! pay special attention to Cliff`s post!!!
leaf4 Posted April 5, 2015 Report Posted April 5, 2015 My boss owns a place on lower buckhorn, he must do alright because he's well off and the way he runs our sheet metal and refrigeration business is all about the bottom line and that's how he is in life in general http://www.bayviewresort.ca/ is his
John Bacon Posted April 5, 2015 Report Posted April 5, 2015 A lot of the members are close with resort owners and have been around a long time to see the ups and downs so I thought I'd post the question here. Retirement is a few years away but I always wondered if semi-retiring by purchasing a resort would be a fiscally responsible idea. I do know it would come with a lot of hard work with probably zero fishing but I've seen resorts further north going for the same price a some luxury single cottages. I also know most renters don't want to drive 5 hours either... I'm a trades guy and could handle the majority of upkeep etc. but what I'm really worried about is the taxes/insurance/licenses etc. Its the bottom line "money spreadsheet" I'm interested in. Are most resort basically just hard work and a break even situation? Thanks guys, yup know the maintenance problems, just would like some "Ballpark figures" on costs and pitfalls. Scare me all you want, hurt me with the truth! I am not sure about the finances; but I am pretty sure that it won't end up being "semi retirement". I think you can expect to be be working a lot of 80+ hour weeks during the summer. You will still have maintenance etc. in the off season. You won't have a lot of time to take it easy. It may be okay for someone who prefers work to hobbies and can make the purchase without a huge mortgage.
Old Ironmaker Posted April 5, 2015 Report Posted April 5, 2015 (edited) One thing I would want to add is if you are in pre retirement you must be closer to 80 than 10. Some people think they will always be able to do what they are able to do at 50. If the aches and pains as well as some worse health things creep up on you, you may not be able to do what is needed without hiring staff. Like plumbers, carpenters, welders, electricians, painters, mechanics, labourers etc. etc.That will kill your bottom line faster than a bullet. A big question for anyone thinking about buying any business is Why are they selling? I guarantee you if it were that lucrative they would not be selling it outright unless the sale will carry them to enjoy a nice lifestyle for the rest of there lives. A million bucks ain't what it once was. I don't get why some people think semi-retirement is going from 40 hours a week 5 days a week with many weeks vacation to 80 hours 7 days a week and no vacation. Edited April 5, 2015 by Old Ironmaker
SuperDave Posted April 6, 2015 Report Posted April 6, 2015 Enjoy your retirement. Go fishing. A lot. Do work around the house. Volunteer at a pet shelter or something to help fill your time. I know absolutely nothing about owning a fishing camp, but imagine its one giant headache.
Shloim Posted April 6, 2015 Report Posted April 6, 2015 One other suggestion. Since it's common knowledge that the hospitality industry is the toughest, you mentioned you are a trades guy. If you want to invest in real estate, but a REIT. Avoid the headaches, now what I've been able to do for the past 2 summers is swap services for a weeks stay at a cottage. We created a pre determined scope of work and it worked perfectly 2 years going now. I would have done it again this year but my wife has an East coast road trip in the works. The options are endless for potential deals, we are also a seemingly "normal" family so that adds a comfort level for people. Just a thought ....
bigbuck Posted April 6, 2015 Report Posted April 6, 2015 The little cottage resort/trailer park in Honey Harbour where we had our trailer recently sold. The old owners had been there for almost 10 years and had had enough. It was getting run down and was not taken care of as well as it should have been. I have spoken to a few people who are in that business, if you are looking for a pay cheque, do not bother. What the place makes has to go out in wages and upkeep/improvements which are constant. The pay out is at the end when you sell. The improvements and increase in the price of the real estate is where you make your money.
motv8tr Posted April 6, 2015 Report Posted April 6, 2015 I would recommend you talk to people who currently own resorts, and ask them all your questions, no one will be better suited to give you answers. From what I can tell most are friendly and would be willing to help out with information. Good luck Maureen
doubleheader Posted April 6, 2015 Report Posted April 6, 2015 If you've got skills so that you don't have to pay someone for carpentry, plumbing and electricity, if you have people skills and enjoy working with the public, if you love to keep busy, if you remain strong of body, if you have a desire to create a family legacy as opposed to generating income, and the you find the right lodge, then yes, I think one could make a go of it and be very happy in the process. That said, probably less than 1 in 50 retirees fall within that subset.
Raycaster Posted April 6, 2015 Author Report Posted April 6, 2015 Thank you for all the replies, I knew the forum was a great place to ask. The idea is many years off and having rented all over for many years I kinda knew the general answer already but the re-enforcements help.
crappieperchhunter Posted April 6, 2015 Report Posted April 6, 2015 If you've got skills so that you don't have to pay someone for carpentry, plumbing and electricity, if you have people skills and enjoy working with the public, if you love to keep busy, if you remain strong of body, if you have a desire to create a family legacy as opposed to generating income, and the you find the right lodge, then yes, I think one could make a go of it and be very happy in the process. That said, probably less than 1 in 50 retirees fall within that subset. Well said and I agree 100%...except for the 1 in 50 ratio. I think the ratio would be more like 1 in a million. Love the kawartha's. Have a cottage in Bobcaygeon. Before we bought it I was leaning towards what you are thinking of. If you are serious make sure your cottages are winterized. That way you can generate winter income from winter tenants. We have our cottage rented out to winter tenants from Oct 1st to April 30th every year. Lots of trailer park people need a winter home. Many of the hotels have these people as winter tenants. They come back every year and treat the place as there own because they DO want to return the next winter. This is the route we went. Originally we looked at a few spots that you might be interested in....but the risk/work/reward numbers just didn't work for us. I can also tell you that you better be handy....cause ALL the trades people we have dealt with up there work at a different pace then what we are used to here in the city. And if in the peak of there busy season you need a little project done in a timely matter....well...good luck with that. Not trying to scare you off...because it sure is a worthwhile and fulfilling goal if you can see it through....just be prepared to do your homework before you jump in and be prepared to be busy after you take down the sold sign.
Tootsie II Posted April 6, 2015 Report Posted April 6, 2015 If your thinking of it as a retirement or even semi-retirement investment, run like hell the other way. Running a lodge is a virtual 20 hour a day occupation in the high season and is not for the faint at heart or for those getting older. Not only can it cost you your health and wealth, but often the "better half" gets dragged into it and their enthusiasm quickly wanes and there goes that part of your life.
manitoubass2 Posted April 6, 2015 Report Posted April 6, 2015 Always been a dream of mine. Im still young and have a great place to build. Once I did alot of research and developed a solid business plan, even had up to $750,000 in forgiveable loans and another $400,000 in cash if needed. I backed out very quick when I could see my wifes enthusiasm wane for the outdoors. No way am I choosing canp life over her and my kids. So now the plan is a nice cabin on the same lake, with future prospect of adding a few cabins or outposts later on. My cousin owns a camp and caters to the rich. Our family basically built half the camp for free. Hes laughing all the way to the bank because his clients are all return customers, rich, and would rather drink and smoke cigars than fish. Another friend owns a camp on wine lake near ear falls. Built it slowly with cash turnaround. Lives a wicked nice life on the lake but thats mainly because he didnt borrow. He used income to grow every few years and stopped around 7 cabins I believe. To boost his business he also rents out the cabins as get aways in the winter. And these are luxury cabins. Hot tubs etc. He lives a wicked life
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