A new survey commissioned by Royal LePage Real Estate Services has found that people who are thinking of buying a recreational property, such as a cottage, are thinking that they need to consider renting out the property in order to afford its purchase, more so than people that already own a cottage.
Over half of buyers who were intending to buy a recreational property would rent to a tenant as long as they had decent referrals in order to help offset the cost of owning the property. But of current owners, the majority (83 per cent) do not want to rent out their recreational properties for extra income.
“Many Canadians aspire to own a recreational property because of the lifestyle benefit it provides but potential buyers must understand how they plan to finance their purchase to ensure they can afford it,” said the president and chief executive of Royal LePage Real Estate Services. “While renting out your property is an attractive option to improve affordability, the ability to do so profitably varies by region. Some areas have bylaws that restrict rental activity while other regions have strict noise regulations that might limit your ability to attract renters. It’s important to talk to a local agent to get as much information as possible about the community you are targeting, should you want – or require – rental income to make recreational property ownership possible.”
Other options for buyers looking to finance a recreational property include:
22 per cent say they plan to buy with friends or family
23 per cent plan to only buy the land at first, and build a cottage in the future
25 per cent plan on buying a cottage that needs a bit of work for a lower price
32 per cent plan on budgeting better for the purchase
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