Six questions to ask when buying a cottage

Morning coffee on the dock, late afternoon kayaks and bonfires under the stars. This is the imagery drawing buyers to cottage properties in droves.

Amid a pandemic that has people working from home and many with no plans to return to the office, buyers are choosing to create a personal paradise of a home office.

Marnie Bennett of Ottawa’s Bennett Property Shop Realty says the prices for recreational properties are up 70 per cent in the past two years and Baby Boomers are part the increased demand for waterfront homes.

“Three point two million Baby Boomers are planning to move in the next five years,” Bennett says. “And 56 per cent of these Baby Boomers are wanting to purchase a recreational property.”

Older millennials, born in the 1980s, also have the disposable income and desire to buy cottages as well, she said.

Waterfront properties used to be on the market for 40 to 50 days. Now the average listing is snapped up within 10 days.

The spike in demand, and in pricing, is staggering.

“Sales across Ontario for recreational properties are up 276% in the last two years,” says Bennett. 

The Bennett team joins CTV News at Noon bi-monthly with trends and tips.

If you are interested in purchasing a recreational property, Marne Bennett suggests you ask yourself important questions and investigate these concerns.

“Do your due diligence,” she says.

If you are looking for a quiet escape, for example, you don’t want to be on a lake with loads of jet-skis.  If you like fast boats, you’d better make sure you can use a motorized boat on the lake you have chosen.

Here are Marnie Bennett’s questions to ask when buying a cottage.

1. Do you want waterfront?

• If yes, does the seller own the waterfront?   
• Are they Crown land? 
• Can you extend the dock, build a new dock or boathouse?
• Is there a shoreline road allowance? 
• What are the costs to buy non-waterfront versus waterfront? 
• What is the most acceptable distance away from waterfront?

2. Has the cottage flooded before?

• Check out the Flood zone Map 
• Check out low & high water marks 
• Insurance will depend on the flood rankings 

3. What is the water quality like?

• Declining quality, or poor water quality, in lakes or rivers impacts the property values and can have drastic societal consequences. 
• Have water test & sampled.
• Where is the water coming from?  If it’s a well, what is the depth?

4. Is the cottage winterized and accessible year round?

• Is the road plowed? What is the condition of the road?
• Is it muddy? What is the road incline and are the roads maintained and easily accessible?

5. Are there opportunities to make passive income?

• Are there any restrictions? What are all the expenses of owning a recreational property?
• Look into taxes, maintenance, utilities, insurance and furnishings.
• What are costs versus revenues? Is there a strong Wi-Fi signal? Close proximity to town?

6. What is the size of the lake?

• If it’s small, what types of boats are allowed?
• What is the depth? 
• Medium lakes are usually great fishing, and large lakes are more active and busy 
• Check out all the lakes using maps from the Ministry of Natural Resources