I’ve been wanting to buy a cottage for a few years now. After every lockdown this desire is amplified especially with warmer weather approaching. The fact that I have very little outdoor space in the city also played a big role. It’s a dream of mine – to have a sweet getaway that I can take my friends and family to, and keep in our family for generations to come. A gift to my kids, and their kids.
As with everything I put my mind to, I quickly became consumed with research and analysis.
As much as I so desperately wanted to spend what could be the last Covid summer with my family in a peaceful, cozy cottage, I came to a difficult yet necessary decision: Hold off on the cottage purchase.
I consulted with many brilliant minds that I’m lucky to have in my network and the following are the main contributors to deciding that 2021 is not the year to buy my dream cottage.
- The lure of a cottage is strong now that the whole world is trying to cope with Covid-imposed restrictions. When we are eventually able to travel again whenever we want, will a cottage be your go-to destination and will it be utilized as often?
- Many cottage buyers may not know what they got themselves into: the costly upkeep, maybe they didn’t realize it was a bad location, and many other unforeseen costs often force previously enthusiastic owners to sell eventually.
- When the stock market crashes, lavish things like cottages gets sold.
- There have been times in the past two decades when you couldn’t have *given away* a cottage.
- Holiday homes are never as solid an investment long term as other investments, they swing a lot more.
- Those who bought in prime markets like Muskoka, PEC, etc. are often well-moneyed and in senior positions. Gains are likely to stick. Other areas in the middle of nowhere? Will likely tank.
On the flip side, does it really make a big difference if the intention is to hold onto the property for a very long time? Many highly analytical and investment-savvy friends of mine decided to take the plunge, inflation or not, bubble or not, and just enjoy the vacation property for years to come with their family. It’s all awash in the end, if you are in it for the long term.
If you are considering making a cottage purchase, you need a pro on your side who can protect you and explain what a septic system is, how to get a good well tester, and give answers to questions like “Is the road even accessible during winter? Is the water swimmable? Is this area known for black flies?” and so much more you don’t even know that you don’t know.
Reach out to us in the contact form below and we would be happy to connect you with our top partners around Canada, in every neighborhood, who are local experts and just awesome people!
Check out my Instagram stories here, for a deeper dive on this topic.
General Form