Avoid Cottage Buying Nightmares
Now may be the perfect time to buy the cabin you always dreamed of considering that the cottage real estate market was not spared by the economic downturn. After years of demand exceeding supply, we are now seeing a more stable cottage country real estate market. Time-share and new condo developments are proposing generous incentives to possible buyers while the prices of resale cottages are falling as seen in the Collingwood real estate market.
Enlisting the help of an area professional should be your primary order of business. The real estate agent you select should have an in depth working knowledge of recreational properties. Do not assume that because an agent works in a community surrounded by lakes and cottages he will have the answer to your questions. Experience selling in the recreational real estate market should be your determining factor when selecting an area specialist.
One very important aspect to consider is zoning. You may be stopped in some cases from changing your cottage into a year round retreat by municipalities having adopted a season using zoning. The same is true for expansions and added constructions. Make sure you ask your agent about the zoning by-laws in the area that interests you. The cottage associations deal with the daily concerns while the zoning by-laws are established by the municipalities.
If you are in the market for a waterfront cabin, be aware that you may not be allowed to modify the beach or shoreline on your future property. In the case of Collingwood cottages, you may be stopped by the authorities from modifying the slope of the property or from adding fill. You will also need permission to modify or construct structures such as docks, boathouses, retaining walls, etc that impact the shoreline. It would be smart to add a clause to your buying agreement that warrant the legality of existing structures or to make sure that changes can be done in the future.
The road access to and from your cottage is another area that should be investigated before finalizing a purchase. You should find out if the road access is public or private, whether it is open year round, and who is in charge of the upkeep of the roadway. The access may be on a private right of way in some instances.
Another factor is the water and sewage systems. Water is drawn from rivers or lakes wells in many cases. To ensure that you water is safe to absorb, bring it to the local health authority for testing. You may have to install a mechanical purifier in order to receive potable water. The Environmental Act strictly regulates the use of septic systems and this is the most used waste disposal for cottages. In many of older properties, the septic system may be a crude improvisation. If you are planning to build an addition on the cabin, you may need to replace the septic system as it will most likely no longer be adequate.
A last consideration should be the financing of the cottage. You will need financial assistance, if like most purchasers, you cannot manage to pay cash for the property. You will be required to put down a minimum down payment of 20% although the amount of financing available will vary with each financial institution. You should evaluate your financing options with a local mortgage broker who will be familiar with the financing choices available for cottage properties.
