cottage

01.26.21 | Buying

5 Things To Know Before Buying Your First Cottage

For many Ontarians, buying a cottage is the dream. There’s nothing quite like having your own little piece of paradise outside the city. But before you decide to take that leap for the first time, there are a few things you should know. Armed with the basics, you’ll be in the best possible position to make an informed purchase.

If you’re thinking of buying your first cottage, here are five things to keep in mind…

1) Your Finances

If you’re like most buyers, you’ll probably require financing. The first step is knowing your options. For example, you can tap into the equity in your primary residence using an HELOC. You can opt for a mortgage instead, or use a combination of the two. Before you make a decision, talk to a personal finance expert. You should also be aware that financing may be a little trickier if you see yourself in a waterfront cottage (due to the risk of flooding), though that’s not always the case.

2) Your Ideal Location

There are over 250 lakes in the Kawarthas, and choosing the right spot isn’t always easy. Are you looking for seclusion—or would you rather have handy amenities (from groceries to craft beer) nearby? Do you plan on doing a lot of fishing or boating? If you have little ones, it’s also a good idea to consider the water depth (and how steeply it drops off) for any given property. Fortunately, an agent who knows the region—and does their homework thoroughly—will ensure you have all the info you need.

3) Local Bylaws

If you find a cottage that’s almost perfect (but not quite), remodelling may be your best option. Unfortunately, it’s not always as simple as purchasing a property and diving in. Before buying your first cottage, you’ll want to make sure the changes you’re planning are above board. For example, if you’re hoping to construct a dock, you may be impacted by existing zoning requirements. An agent with local knowledge and connections can help you find the information you need regarding permits and applications.

4) Tax implications

Thinking of renting out the cottage you’re planning to buy for part of the year? Doing so could seriously boost your income—just make sure you understand the full financial picture first. The amount you get from renters could push you into a higher tax bracket. It may also have implications for certain benefits and credits you receive. On the bright side, expenses such as utilities and maintenance related to rental periods can be deducted.

5) Access

While the Kawarthas aren’t far from the big city, some areas can feel more remote than others. A secluded retreat may sound like paradise, but what if owning one means having to maintain a private road with a handful of other cottage owners? Are you okay with terrain that may be a little trickier to navigate in the winter? This may not present a challenge for some buyers, but assessing your comfort level is the key to choosing a place you’ll always look forward to visiting.

A cottage is a place where family memories are made, and owning one can be incredibly rewarding. By learning the basics and working with a local expert, you can ensure that your home away from home is everything you’ve been dreaming of—and more!

We’re here to help you find the ideal home in Kawartha Lake. Check out the latest local listings, or learn more about buying with our team!