Real Estate Review: Cottage Edition
Ah, the weekend cottage. Leave your cares at home and escape to the lake to relax. Fishing, canoeing, beaches, campfires and family fun are all yours at your own private retreat from the world. Sounds like the perfect summer getaway from the hectic and busy pace of the city. But a cottage is also a considerable commitment of time and money. Is it a good investment property? We spoke with Alda Neves Dubé, director of marketing with Intercity Realty Inc., Brokerage, for her insight into this much-loved Canadian passion.
Q | Is purchasing a cottage a smart real estate investment?
A | “It really depends on your intentions for the cottage,” says Neves Dubé. “Will you be using it for your personal recreation? Is it a property you want to pass down to your children and grandchildren? Or is it simply a real estate investment that you are acquiring for your portfolio? Your overall objectives will impact whether a cottage is a good investment property.”
Q | Any recommendations on where to invest in a cottage?
A | “As with most real estate opportunities, location will ultimately be the driving factor at achieving the highest return on your cottage investment,” says Neves Dubé. “The cottage market in various parts of southern Ontario has been exceedingly active. Like most real estate investments, a cottage purchase will likely appreciate in value the longer you hold on to it.”
Q | What is your advice on when to buy a cottage as a second property?
A | “Buying a cottage as a second property can be expensive,” says Neves Dubé. “People are more apt to spend their disposable income on leisure items when finances are good. Typically, real estate prices tend to peak in the spring and taper off in the fall.”
Neves Dubé also points out that the interest in cottages may increase over the next decade, as the baby boomers plan for their retirement and a more tranquil way of life.