With Toronto home prices so high, cottage and country living has become one of the most viable alternatives to buying a house in the city. Owning a cottage is a great way to truly disconnect when you arrive home. Whether you choose to live in the country or have a cottage just for the weekends and holidays, there are advantages to living outside the city that greater numbers of people are discovering – especially millennials.
According to a Globe and Mail article, millennials are among the most likely to rent the place they live and own a country place well outside the city limits. Not only do they see the purchase of a country place as a way to enhance their lifestyle, they are more likely to use it as a short-term rental to boost their income.
However, before your decide to run out and buy a country place, it is important to run the numbers and to be sure that you will be able to recoup your investment. Firstly, it is harder to get a mortgage on a cottage. Despite having lower price tags, many cottages might not meet a bank’s investment standards. Banks are also skittish about financing second-homes and investment properties unless the buyers have a record of already owning property. So, getting a bank to sign off on a mortgage might be a little more difficult than if you were to buy a regular home.
Don’t forget that if you choose to buy a country place that you can also use for short term rentals, you will have to factor in the cost of the management company that you will likely have to hire to take care of getting your rental ready for new renters. In some cases, although you might get a higher income from short-term rentals, having a long-term renter is more beneficial as it requires less time and financial investment on your part.
Cottage living is a growing trend that really reflects that kind of work-life balance that the younger generation is demanding. It is a good way to have your city pad and a place where you can relax on the weekends.
According to a Globe and Mail article, millennials are among the most likely to rent the place they live and own a country place well outside the city limits. Not only do they see the purchase of a country place as a way to enhance their lifestyle, they are more likely to use it as a short-term rental to boost their income.
However, before your decide to run out and buy a country place, it is important to run the numbers and to be sure that you will be able to recoup your investment. Firstly, it is harder to get a mortgage on a cottage. Despite having lower price tags, many cottages might not meet a bank’s investment standards. Banks are also skittish about financing second-homes and investment properties unless the buyers have a record of already owning property. So, getting a bank to sign off on a mortgage might be a little more difficult than if you were to buy a regular home.
Don’t forget that if you choose to buy a country place that you can also use for short term rentals, you will have to factor in the cost of the management company that you will likely have to hire to take care of getting your rental ready for new renters. In some cases, although you might get a higher income from short-term rentals, having a long-term renter is more beneficial as it requires less time and financial investment on your part.
Cottage living is a growing trend that really reflects that kind of work-life balance that the younger generation is demanding. It is a good way to have your city pad and a place where you can relax on the weekends.
