Is Now A Good Time To Buy A Cottage In The Kawarthas?

Cottage season was once primarily associated with summer in Canada, when the lakes and beaches would be full of people revelling in the warmth and sunshine. Many of us spent all winter dreaming about it, relaxing outside and enjoying a cool drink as the smell of the BBQ fills the air.

Things have changed over the last few years. Canadians have realized that cottage country is just as beautiful when the ground is covered in snow or in the fall. Even though it’s a little too chilly for a dip in the lake, these seasons just kick off a different kind of fun and excitement: hiking, cycling, snowmobiling, skiing, ice fishing, and more.

In terms of lifestyle, any time is a great time to start searching for your cottage! What about the real estate market itself? If the idea of buying has taken hold, here are some tips to navigate today’s changing conditions.

Have you heard about the gorgeous cottage location that is just a short drive from Peterborough? Pinch yourself, because the dream is real! Learn all you need to know in Where Is Kawartha Lakes, Ontario?

What to Know About the Changing Real Estate Market

Change is the only thing we can ever be sure of in real estate. When demand is high, you might compete against other buyers, which could mean paying more for your cottage than you would during a slower market.

When there are plenty of listings and little competition, prices could be lower. All the same, no one can predict what will happen with the market.

That’s why we always recommend acting based on your own reasons and resources rather than by reading the latest statistics. When working under the expert guidance of a real estate agent familiar with your area, you will always have some advantages in any market. The bottom line is that buying a cottage is a smart decision – if you are well prepared and doing it for the right reasons.

Knowing the market is instrumental when forming a winning strategy to buy your cottage. Start by reading the posts below:

Why Buy Now?

If you have spent the last couple of years renting a cottage for a week or just a weekend, the idea of buying might be endlessly intriguing. Owning comes with its share of responsibilities, but the benefits cannot be denied.

There’s no more rushing to book your vacation destination before all of the spots fill up. You can rest assured that you will always have your time whenever and as often as you want it.

You can also renovate and remodel your cottage however you want, permits and budget allowing. There could even be potential for income if you decide to rent it out on Airbnb or Vrbo; however, the legalities are beyond the scope of this blog.

If this is something you want to explore, be sure to look into the by-laws in your chosen area regarding short-term rentals. Your real estate agent can also help with your specific situation.

Buying a cottage now can be an excellent option if:

You are a first-time buyer searching for a permanent home in a stunning vacation paradise. Places like the Kawarthas are not just for summer holidays; they are stunning all year long! Plus, the towns of Kawartha Lakes boast most of the modern amenities you’re after.
You have sufficient equity and savings and want to expand your property portfolio. Your primary residence and your cottage will both increase in value over the years, allowing you to grow your wealth over the long term.

When Should You Rethink Your Decision to Buy a Cottage?

Buying real estate of any kind is a big investment. As such, it’s a decision you’ll want to make carefully, while taking your future goals and current finances into account. In some cases, it might be better to wait or even reconsider whether you should purchase a cottage at all. For example:

You are buying in the hopes of selling soon at a profit. Real estate can still be an excellent investment, but the days of quick returns are behind us. It’s not just because of anti-flipping legislation, but also due to the market itself. It takes time for a property to appreciate enough in value to earn a healthy profit.
Buying now will stretch your finances. If covering two mortgages would be a struggle, you are likely better off waiting until you have greater purchasing power. Remember that life can change, and even a slight increase in interest rates can affect your ability to repay your mortgage.

Should You Take The Leap?

Buying a cottage doesn’t just give you a second home whenever you want a change of scenery. Many people are buying now with the intention of living there later. If you’ve ever wanted to know how to downsize in style, just think of a home by the lake, with multiple recreational activities and surrounded by amenities. (Do those retirement dreams include scoring a hole in one? The Kawarthas are the right place for golf enthusiasts!)

If you’ve decided to take the plunge, this will be one of the most exciting moments in your life, and cottage hunting can be fun. How do you get started?

Reach out to a local real estate agent you trust and who has experience in your particular market. They will be there to guide you through everything else you need to know along the way.
Next, schedule a visit to your lender or mortgage broker to see how much you will qualify for. (If you need a recommendation, your Realtor® can help!)
Existing homeowners may be able to qualify for a second mortgage. (Just be sure you understand the risks associated with too much mortgage debt. If you default on the loan, there’s a chance you could lose your house.)

Dreaming of the Kawarthas?

“Cottage country” in Ontario encompasses a broad area. One of your first challenges is to narrow down your search to an ideal location, preferably one full of pristine beauty that is also easy to get to. If you live in Peterborough, Kawartha Lakes is just perfect.

You can get there quickly, and soon swim, fish, and explore nature throughout the warmer months. Then, in the winter, you can take in the beauty of a pristine snowfall while cross-country skiing, skating or snowshoeing. To top it all off, you’re surrounded by a network of vibrant communities offering fun festivals and events all year round.

The list of reasons to choose Kawartha Lakes keeps growing! Here are just a few things you’ll have to look forward to:

Ready to Begin?

Start by listing all of the features you want your cottage to have, such as the number of bedrooms, proximity to amenities and whether you want one on the waterfront. Make a note of your top contenders to visit in person. This is the fun part!

Set aside a weekend where you can walk through and explore the property and the community. This gives you a clear picture of what your life will look like once you’re all settled.

Above all, work with a real estate agent who specializes in the area. A local expert can tell you about all of the hidden gems in the community and help you find your perfect home-away-from-home!

Do you want to know more about cottages available in the Kawarthas? Our Peterborough real estate agents are happy to get you started and answer any questions you have. Just reach out to team@jeffandkatie.ca or call 705-243-9797 to start the conversation.