7 Things to Think About When Buying a Cottage
As I write this I am sitting here on the dock looking out over the water while the kids play. I am at the cottage of a friend who thanks me for my help in coordinating his purchase by inviting us up every summer to celebrate. My husband and I have recently started looking for a cottage of our own and these are some of the tips I have learned about what to look for.
1. Good swimming and a healthy lake. What is the access from the land to the water? Is there a good beach area? Some lakes do not allow large boats. Is it weedy or prone to algae blooms? Think about accessibility, if there are a lot of stairs will your everyone be able to manage? The wet spring this year has meant that mosquitos are prevelent, make sure you don’t choose a spot near wetlands. A place with a good breeze can blow pests away.
2. A convenient town. Walk around, find out where the fire department and hospital are. These can have an impact on insurance. A close grocery store and charming shops are all great to have, especially if you are planning to rent out your place at all.
3. Distance. I had to do an open house this weekend and being close enough to the cottage to be able to come and go when work calls me is definitely important.
4. Ownership. Make sure you understand the ownership of the property you are buying. If there is not a survey, get one done. Know all the details of any easements. Is the road to access your cottage public or private?. If it is private, do you own it? What is the road like in spring? Is it plowed in winter? Who maintains it? Once you narrow down where you want to be, meet the neighbours, talk to someone who knows the area well and find out about any land claims that may exist.
5. Amenities. I have been renting a cottage with my brother and sister and their families for the past several years so I know I need 5 bedrooms and a washer and dryer. I don’t intend to be there in the winter so it does not need to be a 4 season which could save some money but when financing, banks tend to look more favourably on winterized cottages that have year-round access. With all those people needing groceries I do want to have road access though so not an island. I’d like drinkable water from the tap to avoid having to bring water with us so I need a well which needs to be tested. And a septic system is a must, this needs to be inspected and pumped before closing. Rural properties can have very high hydro bills so I’d like to install solar panels on our place.
6. A budget. Calculate mortgage payments, property tax, insurance, utilities, fuel, and commuting. Think about costs like maintenance, repair and entertaining.
7. Experts. You will want to have a conversation with mortgage and insurance brokers, a lawyer and a financial planner. There are rules about how much you need to put down, especially if you plan on building. Find out about tax implications. If you plan on sharing a cottage with another family, figure out those pitfalls. Finally, find a knowledgeable Realtor you can trust who has your best interests at heart. I know a great one!