Should you buy a cottage this year?

Buying a cottage is a super tempting idea for many people these days. Traveling within our own province has become popular as international travel can still be complicated. Lots of us would like an extra property to relax in or work at — sort of a vacation home and home office combined. If you want to buy a cottage, there are a lot of things to consider before you start hunting. It’s an exciting experience, but be sure to take these points into account first.

Consider your budget

When you buy a cottage, you’re buying a second home. Whether you plan to live in it full-time or use it as a weekend escape, you will have to pay for it as if it were your main home. Cottages have become increasingly expensive as people have been favouring “staycations” in their own provinces to avoid the complexities of international travel. Depending on the size and location of your cottage, you could be looking at buying a property almost as expensive as your home. 

You will also have to factor in costs for electricity and internet, which can be pricey in remote areas. Plus, you will need to purchase insurance for the property. You can rent the cottage out when you’re not using it, which can relieve some financial pressure. However, lenders will want to know that you won’t need to rely on rental income to purchase this property. Before you buy a cottage, you will need to be actively budgeting for it to ensure you can afford it.

Mortgage considerations

Securing a mortgage for a second property is often a more difficult process. Many lenders require larger down payments for second properties to give them more assurance in your abilities to afford it. Since you already own one property, lenders want to make sure you have the funds to pay for another. Your down payment might need to be 30 per cent or higher, which is a large sum to save up for. If you want to buy a cottage, you’ll be looking at needing tens of thousands of dollars saved up just for the down payment.

Maintaining the cottage

Owning a cottage means you’re responsible for maintaining it as well. Just like with any other home, you’ll have to ensure this property is cleaned and cared for, and any repairs or issues will fall on you. If you want to buy a cottage that can be used in the winter, you will need to winterize it and maintain its heating, insulation, windows and doors, and pipes. You will have to keep it clean and keep the yard maintained as well. If any issues occur with water, roofing, or plumbing, you will be the one who needs to arrange for fixes. If you’re prepared to take on this responsibility, you might be a good candidate for buying a cottage, but it’s certainly a lot to consider.

Location is everything

Just like with a regular home, location is very important for when you buy a cottage. Nova Scotia has lots of great cottage areas. Consider if you want your cottage to be on a lake, on the ocean, or in a more forested, secluded area. Your desired activities, like swimming or hiking, will influence where you buy. If you plan to rent out the property, it’s worth noting that waterfront cottages are often the most popular, as people love relaxing near the water and tend to link cottages to swimming. Your cottage should also be easily accessible. Consider how, or if, the roads are maintained and if an average car can easily reach the location. 

Find a realtor

As with any home purchase, we strongly recommend using a real estate agent. Not only that, but it’s best to use a realtor who is familiar with the area you want to search in. Using a local realtor ensures they know all the ins and outs of cottage country and can provide you with the best information and advice. Cottage real estate can be a bit different from buying in Halifax, for example, so it will benefit you to have a professional who knows about rural buying. Things you might not consider, such as water access or plumbing, will be an important part of buying a cottage.

The decision to buy a cottage rests on your own circumstances and whether it suits your situation right now. If you decide buying a cottage is right for you, we’re happy to be your guide throughout the process! We can help you access the best lenders and assist you as you locate the perfect real estate agent.

If you’re interested in buying a property or chatting about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.