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Necessary elements to consider while buying a cottage

  • Apr 11, 2024
  • 7:53 pm

If you are thinking of buying a cottage in Canada and following the market, it is obvious that competition among buyers in this market segment has increased tremendously over the past decade. In recent years, cottages have been in high demand, as the interest in renting personal properties for additional income has become more available through various online platforms. Buying cottage as a vacation home or even a year-round home can be a good investment in not only short term but also long term. There are some important factors to consider when looking for the perfect home. We highlight six necessary elements that are required to be considered when buying a home for vacation.


A cottage can be a terrific investment. However, location and the times of year you visit your vacation property can have a big impact on whether or not it generates rental revenue. A property that can only be reached by boat will most likely only be utilized as a summer residence. In such scenario, the cost of owning a boat must be taken into account when investing in an island cottage. While many backcountry roads are not maintained throughout the winter, certain properties in extremely remote places may be reachable by car but may not be accessible during the winter. Location is also crucial to take into account when determining how far away from facilities it is. Since many cottages are located in extremely remote areas of the nation, it may take a while to go to a grocery shop or gas station. Location and accessibility, along with other amenities, are important considerations when making an investment in a secondary house.

Rental potential and rules relevant to it

Cottage can be an fabulous speculation in the event that you moreover select to utilize them to deliver rental pay. When obtaining a house as a rental property, key factors to be noticed are the number of bedrooms and bathrooms, ease of acess, and area. Assume the thought of leasing is your fundamental driving force behind buying a recreational property. In such scenerio, it is strongly recommended that you simply go through the rules and regulations with respect to leasing out regular property and learn your way around the diverse web platforms accessible for leasing.

Requirements for maintenance

It is essential to get a comprehensive inspection before buying your vacation house to make sure it is suitable for both summer and winter climates. One of the most important things to look for when thinking about year-round upkeep is how old the windows, doors, and roof are. Additionally, you should check the amount of insulation, especially underneath the floors. Wintertime puts a lot of strain on cottage roofs because snow, ice, and other debris build up over time. Furthermore, the age of the windows and doors matters since you don’t want any gaps or openings that could allow animals or the elements to enter the cottage. In addition to the structural requirements, getting to know about the municipal ordinances for winter snow removal is crucial . Certain areas have regulations dictating that a path needs to be cleaned at all times in the winter. If you live far away, it can be worth the investment to hire someone to check in on your cottage and remove any snow, ice, or debris during your offseason after learning about the local rules.


Piggybacking on the year-round support prerequisites is being mindful of the sort of plumbing the cottage has – or indeed on the off chance that it has plumbing at all! When looking at cottages for deal, make a list of vital amenities, such as having indoor plumbing. Numerous houses do not have indoor plumbing, and they are equipped as it were with an outhouse. In addition to that, numerous properties in recreational markets run on a septic system, which needs a distinctive amount of maintenance, care and attention year-round.

Taxes and Capital Gains

A cottage is considered “personal-use property” which means there are differences in tax treatment. If you only use your cottage as your own personal vacation home, there are different tax treatment than if you decided to rent it out. When you sell your cottage, you’ll have to pay taxes on any capital gains made on it. Before you make any big financial decisions and buy a property, it’s important to think about your financial situation and what you need and want in the property. It’s always a good idea to talk to a professional first. If you’re a cottage goer, you’ll want to know that in October 2023, the federal government revealed new reporting rules for trusts. Under the old rules, anyone who held a beneficial interest in a trust didn’t have to report it. However, under the new rules, anyone who owned a portion of a trust in 2023 is now required to file a T3 return (also known as a T3 return) by April 2, even if they didn’t generate any income from a trust. Cottage owners should also know about the “Underused Housing Tax” (UHT). Ottawa introduced the UHT in January 2022, which is a one percent tax on residential property occupied for less than 180 days in a year. This applies to all Canadians who owned residential properties through a trust as of 2022.

Cost of living

What’s the cost of renting a cottage? This question requires a lot of research and due diligence. You can generate a rough estimate of your future costs by considering the factors below.

  1. Insurance for the households
  2. Filtration system for drinking water
  3. Garbage services
  4. All other necessary utilities including power, heating, mobile phone, and internet
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