So you think you want a cottage. You envision endless summer days on the dock and nights spent gazing at the stars by the fire. Well, take off your rose-coloured shades for a moment, because there’s a world of capital gains, estate planning, and the other financial issues for you to explore before you buy.
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How much does a cottage cost?
The lure of the cottage – can you afford it?
The price of a cottage is just the beginning: Property taxes, utilities and maintenance can really add up. Before you buy, know what you can afford by following the 32-per-cent guideline
Sheryl Nadler/The Globe and Mail
Things to consider when buying recreational property before a city home
First-time home buyers should be cautious about trying to bypass expensive urban housing by purchasing a recreational property first, real estate experts say.
The joys of cottage life, at a fraction of the costs
Fractional ownership is essentially the old-fashioned time-share: A number of people each pay for the right to use a facility for a specific period of time each year
Mark Blinch/The Globe and Mail
Is a cottage a good investment?
Why cottage ownership is a pricey proposition
Buying a cottage is most often an emotional purchase, so don’t kid yourself into thinking it’s also a sound financial investment
Vacation property: emotional buy or sensible investment?
The decisions you have to make before buying a cottage aren’t necessarily financial. They’re lifestyle questions
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Tax and financial tips for cottage owners
Ten tax issues and opportunities with your cottage to watch out for
If you own a cottage, or are thinking of buying one, be mindful of the following cottage-owner mistakes that can cost you big tax dollars if you’re not careful
Plan to earn rental income from your cottage? Consider these tax implications
Whether it’s a cottage, cabin, camp or chalet, more Canadians are looking to defray the cost of ownership by earning some rental income, or trying to deduct some of the costs related to their vacation homes
Need a mortgage on a cottage? Here’s what lenders look for
While the basic process of applying for and qualifying for a mortgage are the same, lenders will look at many more variables when assessing a property before lending money to buy a cottage
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Estate planning: Cottage as inheritance
The five biggest estate planning mistakes of cottage owners
Who will pay for maintenance costs when you’re gone? How will decisions be made? Here are the five common mistakes that cottage owners make when it comes to planning for the future of the property
A cottage agreement can save the family headaches
If you own a cottage and are thinking of leaving the property to your heirs one day, there’s no guarantee that they’ll be able to share the place successfully. But you can stack the odds in favour of a happy co-ownership through use of one terrific tool
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Leaving the family cottage to children will cost you – or them
Whether you gift a vacation property, sell it to your heirs, put it into joint tenancy, or you give it by will, there will be a capital gains hit for the owner of the property
How to keep the cottage in the family
Estate planners recommend having frank discussions about the cottage to avoid stress, family feuds and potentially hefty bills down the road
The feud-free way to co-own a cottage with your family
Owning a cottage with a family member means sharing the work and expenses, so having an agreement to cover ownership, upkeep, cleaning and costs is important
Dianne Nice