Before the pandemic, it was uncommon for people to rent out their cottages, but with all flights grounded, cottages became popular short-term rentals. And the trend is as strong as ever today. But potential cottage purchasers should consider it is important to buy a cottage in the right place. Although cottages are most popular in the summer, certain places that offer year-round activities will yield cottage owners even better returns on their investment.
Canadians are already jumping headlong back into the recreational housing market. Royal LePage anticipates 8% growth in the single-family recreational home market in 2024 in Ontario alone, and 5% nationally, which would bring average prices to $662,148 and $678,930, respectively.
However, there are also a lot of deals to be had out in the cottage country, following the massive rush north when COVID-19 hit. Moreover, with the last federal budget increasing the capital gains tax rate, many cottage owners were contemplating whether or not they should list their properties by the June 25 deadline. In that respect, there are indeed opportunities to be found on the market.
Some final thoughts: Talk, before you leap
For those contemplating a cottage purchase solely for leisurely enjoyment, it is imperative to sit down with your children when planning the estate and determine everything from who wants to use it and who doesn’t, how that affects a non-resident child, and who will be responsible for its upkeep.
