Buying a Cottage: Key Elements to Consider Before Investing The cottage market is constantly growing in Canada, offering more affordable prices than the urban sector. Before buying a chalet, it is important to make sure you make a good investment to guarantee the profitability and durability of your acquisition. Here are the key things to consider:
1.A targeted search: Before buying, it is important to know your needs according to your lifestyle and your family, as well as to take into consideration the location where you want to live. This will define the style of chalet that suits you, with the number of bedrooms and bathrooms suitable for your needs.
2. An adequate provisional budget: The purchase of a chalet involves significant costs, in particular the down payment, inspection and evaluation costs, notary fees, CMHC insurance premium, insurance life and housing, welcome tax, etc. It is important to do the math from the start to avoid unpleasant surprises.
3.Inspection of the land and its accessibility: It is essential to have the land inspected to verify that all construction standards have been respected and that the building is not located in a protected area preventing the right to build. It is also important to find out about the risk of landslides or flooding of the land as well as the accessibility of the chalet in all seasons.
4. Checking the Surrounding Landscape and Neighborhood: Find out about local amenities such as grocery stores, pharmacies, hospitals, and other useful day-to-day utilities. Also do some neighborhood research to understand the distances to these amenities. It is the same for the environment and the landscape surrounding the chalet.
It is essential to check the septic systems of a chalet during the visit to ensure their functionality and their connection to a drain field, since most chalets are not connected to the sewer systems. municipal. It is also recommended to find out about the condition, possible problems and age of these installations. As a buyer, you have the right to request copies of pre-inspection and approval reports and to perform your own inspection. It is important to note that the septic tank must be properly maintained and emptied before the closing of the sale.
Foundations and insulation are also key points to check. Depending on the use you will make of your chalet, it is important to ensure the solidity of the foundations and the quality of the insulation to prevent any costly work. Additionally, insurance and maintenance costs can be high, especially for cabins located in hard-to-reach areas or in winter. It is recommended that you ask your real estate agent or previous owners for average electricity bill costs and plan for expected expenses.
If you're considering buying a cottage as a long-term rental investment, it's important to do the necessary math and check the potential rental ease based on the key points mentioned earlier. In addition, if you are considering buying a condominium chalet, it is important to take the time to check the condominium regulations, condominium fees, the condition of the chalet, the provident fund, the condominium association or the board of directors, the renovations carried out and the expected short and long term expenses.
Finally, it is recommended that you consult a mortgage broker to help you find the product that best suits your financial needs, since buying a cottage is a major investment.
Written by Kenny Bruton Mortgage Broker