Cottages As Investment Property
“A Cottage Or Vacation Home Can Also Be A Profitable Long Term Real Estate Investment”
According to a resent survey conducted by Royal Lepage, a percentage of those surveyed believe that owning a cottage or vacation home is a good long term investment.
Here’s the rest of the article as well … http://www.canequity.com/blog/2011-05-majority-of-canadians-confident-in-vacation-homes-as-long-term-investments/
The survey focused on individual that had either recently purchased a vacation property or planned to purchase on in the next 24 months.
Especially in the upper end cottage communities, the real estate market can very closely reflect what you would typically see in urban areas in terms of growth rate and resale-ability.
As more individuals get prepared to take this step towards cottage type investments, the key element to making their property profitable over time is going to be the structure and rates provided by their cottage mortgage facility.
While cottage mortgages are not that difficult to secure, there can be considerable differences in rates and terms from one type of cottage to another and there can also be differences from one area to another to reflect a market that is stronger and maintains higher resale activity and interest.
And when you already own a primary residence, you can still qualify for a cottage or vacation home mortgage at very slow interest rates and low leverage, but you’re going to have to make sure you can meet the lender’s lending criteria in order to do so.
Outside of just buying a good property mortgage financing is going to be the next important element in terms of the amount of money you need to put down to acquire the property, the interest rate you’re going to have to pay over time, and the monthly debt serving that is going to impact your case flow.
In order to properly navigate through all the different twists and turns that can come into play when trying to place a cottage mortgage, your best bet would be to work with an experienced mortgage broker who can help you plan ahead of purchase the best way to approach mortgage financing so that when you locate a property you’re interested in, you’ll already know if its going to fit into your financing requirements.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel