Can Cottage Country Homes Really Be an Investment?

For all those buying and for those who have already bought luxury cottage homes, the question remains whether the cottage home is a recreational property or a real cottage investment in itself. For ones who are thinking cottage country properties as an investment, it is high time to rethink on their decision. There are varied reasons to not invest in cottage country homes.

When it comes to selling these homes, the demand often takes a blow in market.

The taxes levied in Canada are also soaring high for the municipal corporations want more dues annually.

There might be a time in future when you get bored of these homes by visiting them again and again. It can also be a case that your needs or your future’s needs change with time.

Insurance premiums have gone up depending on the cottage home location.

Maintenance cost of these cottage homes are usually high since they are homes meant for visit only once in vacations be it summer or winter. Also workers availability when needed at such remote places could be tedious.

One may think that it is a good get a way luxury home, but less people ponder on the fact that more risk is posed to close to nature homes rather than to city homes. Problems like fire in woods, natural calamities like landslides and floods are more common in case of cottage homes.

While these homes are out of city, people have to drive miles spending much on fuel.

For those people who have put the property on rent, managing tenants could be tough.

The interest rates for the homes purchased on loans are on high side. More so, stringent mortgage rules are present to further demotivate a customer from purchasing one on loan.

If the home is bought by you but passing on to the next generation is the need of the hour then the capital gains tax have to paid full on the incremented asset value of the home from the time you bought it. This is usually on a higher side.
 

Hence, keeping in mind the above points while purchasing a cottage country home, it can be said that the cottage is not an investment but only a recreational house. But for those who have actually purchased the property, there are certain points in order to see the home as a cottage investment and are to be kept in mind. Since weather and time put more physical problems on the cottage homes, it is advisable to get your property insured. There are also cases when a manager can be hired to take care of your property.