Tips For Buying vacation homes, Waterfront Property, and Three Season Cottages

1. Tips For Buying vacation homes, Waterfront Property, and Three Season Cottages In Canada

2. Living the dream Before you begin the process of buying a vacation home, waterfront property or three-season cottage, there are unique considerations which you should keep in mind during your search and purchase. Disclaimer: Every residential and commercial real estate purchase is unique. This is provided for general informational purposes only. Any reliance or action taken based on the information provided is the sole responsibility of the user. Readers are advised to consult appropriate professional resources to determine what is suitable in their particular case. It is recommended that professional resources also be consulted for the purchase of condominiums, vacant land, investment properties, vacation or second homes, commercial or industrial properties, or in-law suites. This Guide assumes no responsibility for any consequences arising from use of the information provided in this Guide.

3. Determining Market Value In a suburban subdivision neighbourhood, it’s relatively easy to find recent sales of comparable homes in order to determine the true market value of the home you would like to buy. In a recreational setting, it can be more challenging as there are so many variables in the property types and amenities. An experienced real estate agent is an essential partner when determining the value of a home in a recreational setting. Your buyer’s agent will have access to a list of local listings (most often through MLS) sold within the last few months to compare to your home. To determine comparability, your agent will look at the features of a property which directly affect price, including: • Same or similar lake or waterway proximity • Lakefront or ocean frontage • Lot acreage • Age of buildings • Number of buildings • On-site docks • Boat house slips (single story vs multi-story)

4. What about water?! Chances are your vacation home is near water. When looking at homes near water, whether lakes, rivers, streams, or an ocean, don’t forget to research the quality, access and usability of the water. The regional watershed can be affected by a large variety of influences such as phosphates, water flow from other sources, size of waterway, land uses upstream (i.e. cattle or dairy farms), water depth control measures by government (i.e. with dams), and more. The information you need regarding the water on or near your property is available through the local government and is public information. Your agent should know how and where to access these critical water valuations. Understanding water quality is only one consideration. You want your access to water to meet your expectations for fun. Ensure you really can swim, boat, fish, kayak, canoe, or sail in your local lake, stream, or ocean. Also, discover the local conditions such as the prevailing winds and how they might affect your dock or how winter ice flows will affect your boat house or dock systems. Establish if the property is on a river or channel with a great deal of boat traffic which could result in wave damage to boats, docks, boat houses, or beaches.

5. Is it built well? A home inspection can reveal issues with the structure and integrity of your home. This is especially important when the recreational home you are considering is more than twenty-five years old. A home inspector will verify the condition of the property’s drywall, roof shingles, water pumps, water piping systems, septic tank, water purification systems, and the use of lake, stream, or well water for showers, dishes, etc. When you are further away from civilization, you need to know that your home has been properly maintained and is in full working order. Is it legal? Your home inspector will also confirm the legality of renovations, upgrades and builds on the property. The inspector will check that appropriate zoning use is in effect and that everything has the proper permits and municipal inspections on file. For example, are the shower and toilet permitted, is the boat house built on a Road Shore Allowance and is that Road Shore Allowance owned or leased. It is also important to understand the lot coverage allowance permitted and how much of it is already in use. If the lot coverage allowance is 10% and the existing buildings already meet that limit, you will not be able to build that Bunkie you wanted for additional sleeping accommodations. In other words, have the property thoroughly inspected for quality, legality and potential.

6. A few things to keep in mind Community – Explore the neighbourhood around your vacation home. An active community is invaluable on rainy days and when entertaining visitors. Learn more about the area by picking up a local paper and getting information on local events, landmarks, attractions, and services. Before selecting a property that is remote, consider your needs for health care, safety, and camaraderie. Financing – For recreational properties, financing mortgage terms vary greatly and it’s helpful to talk with your lender early to confirm all of your options and restrictions. For example, Hypothification (in which the debtor’s house becomes collateral for the mortgage) of a vacant building lot is difficult and not available through most lenders. In that case, a Personal Covenant (a covenant that does not run with the land, but is binding on the covenantor) is the usual means of collateral. Dock and boat house financing can also be challenging to obtain, so check with your lender before making detailed plans. Insurance – Recreational dwellings can also have unique and specific insurance requirements. Check with your insurance brokers regarding availability, costs, and conditions. For example, insurance costs on a wood framed cottage with a wood burning fireplace will have potentially higher premiums.

7. A few more. Internet and Cell Service - Check with neighbours and your internet and cell providers to confirm that internet and cell phone access is acceptable for your personal need especially if you plan to work from your recreational home. Privacy – How much privacy are you seeking? Lake frontage and larger acreage will increase your potential for greater privacy. Can you walk to your neighbour or do you need a car or boat for visiting? Seasonal Access – When a property is described as having seasonal access, it is not accessible during all four seasons. For example, it may be inaccessible in winter due to snow. If the property you are considering is on a private road, be sure to investigate who is responsible for the plowing and what the cost is to plow. Self-Sustaining – Living in an urban environment, you probably don’t think much about where your power and water come from or where your sewage goes. When you live in a recreational area, these are very real and pertinent considerations when utility services, water, and sewer are usually not provided or maintained by the municipality. Research every aspect of the water and power supply for your home, including drinking water, well-water testing, lake water supply (algae plumb), power supply (understand likelihood and frequency of outages), back-up generator requirements, septic tank pump outs, and more.

8. That’s it, that’s all. Enjoy yourself out there!