3 Steps to Buying a Recreational Property

3 Steps to Buying a Recreational Property

Renting a vacation cottage can work for the short term, but there’s a huge difference between staying at someone else’s property and having your own personal retreat.  Why pour your hard-earned dollars into paying someone else’s mortgage? Why not invest in your own piece of paradise and possibly earn some extra income from it?

STEP ONE: Determine costs

There will be quite a few decisions to make before purchasing your recreational property. The first question you’ll need to ask yourself is:  Will this property be strictly for pleasure or do you plan to use it as an income opportunity? For some, creating timeless memories while sharing good times with family and friends is all they need to find value in a property.  Keep in mind that it isn’t always fun, sun and relaxing in the hammock. Quite a bit of work goes into owning a vacation destination. Things you should keep in mind are property taxes, insurance and utility costs, not to mention maintenance and upkeep, and possibly even a second mortgage.  When you purchase a recreational property for personal use only, this should be looked at as a long-term investment. It isn’t the same as purchasing a home, as it is unlikely you will make your investment back if you decide to sell after 5 years.

The numbers have been crunched and you are now ready to begin the hunt.

STEP TWO: Find a location

Deciding on where you want to buy your recreational property is an important choice that should primarily depend on where your permanent residence is located.  You will want to be far enough away to get all the benefits of cottage living, but close enough that your travel time doesn’t take away from the time spent enjoying your private oasis. A good rule of thumb is to set your sights on a property that is 2 to 4 hours away from your home and has close access to amenities such as grocery stores and health care providers.

STEP THREE: Hire an agent

Now that you have chosen your location, the next item on the agenda is to find a local real estate agent that can advise, help and guide you to help make your dream a reality.  The advantage of using a professional who has first-hand knowledge of not only the area in which you are looking but who also specializes in recreational property real estate is invaluable.  They will be able to assist with things that you may not have even thought of, as well as get you the biggest bang for your buck. Be sure to have a list of things you “must have” in your property, as well as your “like to have” and “bonus points” ready for the agent to review.  Take your time when picking an agent and interview multiple candidates before deciding on “the one”.

 Budget

Location  

Agent       

Let the search begin!

Stay tuned next month when we look further into the advantages and disadvantages of renting out your recreational property.

Rob Heming at Realty Executives on the Bay specializes in tourism accommodation, recreational and multi-residential properties, as well as fine homes and waterfront cottages.