Categories
Cottage Life

How to handle cottage rental security deposits for guests and hosts

Renting out your cottage comes with a certain level of risk. Whether it’s a hole in the wall, a chewed couch thanks to the guest’s canine companion, or a ruined septic system from someone flushing the wrong items, you can wind up with some expensive repairs. That’s why many hosts introduce security deposits.

How does a security deposit work?

Security deposits are designed to protect hosts against damages caused by guests. In most cases, the host collects a security deposit from the guest before the stay and refunds the money after checkout, assuming the property’s in good shape.

Bill Dobbs, who runs Muskoka Cottages by Marlene, a property management company that handles a number of cottages in Muskoka, says he only uses security deposit funds on major damage, not on minor incidents, such as broken dishes.

“One of the big ones is garbage left behind. We require all our renters to take all their garbage, and if they leave it behind, we’ll take that off their security deposit,” he says.

Security deposits also act as a deterrent against bad behaviour. “I have family that have a separate rental. They don’t collect a deposit, and they tend to get more parties,” Dobbs says.

Typically, the amount collected for a security deposit depends on the size of the property, but Dobbs says he lets the owners of the cottages he manages determine the amount. On average, he’ll collect $3,000 to $3,500 for the security deposit.

How do you collect a security deposit?

Dobbs advertises his rentals through his own booking website, rather than through a rental listing website, claiming the booking giants take too large a percentage of the profit. This means he’s in charge of managing his own security deposits. To collect the security deposit, Dobbs puts a hold on the guest’s credit card throughout the stay. This hold is released seven days after checkout. During that time, he can alert the guest to any damage and charge their credit card.

What are security deposits used for?

Throughout his time managing cottage rentals, Dobbs says he’s never collected a guest’s full security deposit, only the amount necessary to cover the damage. “Last summer, we had a dog chew on a door frame. So, we had a repair guy come out, fix it, and whatever he charged is what we took off the deposit,” he says.

Collecting a security deposit can come with issues—one being unhappy guests. “We’ve had people say that I’m not allowed to take money off their credit card, or that they’ll phone their credit card company and charge me,” Dobbs says. This occurs in instances when guests feel they’re being unfairly charged for damages. That’s why Dobbs clearly outlines the role of the security deposit in the renter’s terms of agreement and only collects for legitimate damages.

But not every host is as diligent as Dobbs. From a guest’s perspective, sending an additional thousand or so dollars on top of the booking fee can leave you feeling vulnerable, especially if the security deposit isn’t sent through a booking platform. If you’re e-transferring the money to the host, you have no recourse for getting that money back.

How do security deposits work with Airbnb and VRBO?

This is an issue that even the major booking platforms grapple with. To help balance the power between guests and hosts, Airbnb introduced Aircover back in May. It’s a free, comprehensive protection policy that ensures guests aren’t cheated out of their rental or have to pay any extra fees. Airbnb doesn’t allow hosts to charge guests a security deposit unless the host manages their listing through Airbnb’s software. The host can then communicate how to submit the deposit through the offline fees feature.

Aircover also covers hosts. Airbnb offers hosts up to $1 million USD in damage protection, including pet damage and deep cleaning. Hosts have 14 days after checkout to file a damage claim against a guest through their resolution centre (hosts are not allowed to request other fees through the resolution centre). The guest has 24 hours to respond to the reimbursement request. If the guest declines or ignores the request, Airbnb will follow up with the guest and host to mediate the situation.

VRBO takes a more traditional route. The booking platform provides hosts with three options: either the host can keep the guest’s credit card on file, having 14 days after checkout to file a damage claim; the host can ask for an upfront refundable security deposit, paid back to the guest 14 days after checkout if no damage claim is filed; or the guest can purchase property damage protection, an optional insurance policy that covers damages caused by the guest.

The property damage protection insurance offers three policies: pay $59 for $1,500 of coverage, $79 for $3,000 of coverage, or $99 for $5,000 of coverage.

As a guest booking through VRBO, if you feel the host has unfairly charged you for damages, you can dispute the charge by contacting customer service. Similar to Airbnb, the booking platform will contact both you and the host, requesting additional documentation to verify the host’s claim.

If used appropriately, security deposits add an extra layer of protection to the rental process. As a guest, just make sure you read the fine print and understand what circumstances cause you to forfeit your security deposit. And, if possible, make sure you send the security deposit to the host through a booking website so that the money can be traced.

As a host, be upfront with the guest about why you collect a security deposit and how much you collect.

“For the most part, I don’t take money off anyone unless there is a real reason to do it,” Dobbs says. “I’m not trying to make money off of the security deposits.”

Categories
Cottage Life

Cottage real estate region: Lac du Bonnet

Lac du Bonnet and the rivers to which the lake is connected (the Winnipeg, the Bird, and the Lee) lie about 100 km northeast of Winnipeg. Tucked between Lake Winnipeg and Whiteshell Provincial Park, this transitional area offers lots of variety: part former agricultural prairie flatland, part rocky Precambrian Shield. 

The picturesque Still Cove and Bird River areas are coveted for their access to the bigger lake though they are on quieter adjacent waterways. Overall, there are only a few water-access sites; nearly all properties are accessible by road. A hydroelectric dam to the northwest keeps water levels fairly constant. 

Cottagers take their pick of recreation: 60 km of waterways for boating; summer and winter fishing for pike and walleye, including a thousand-hole ice-fishing derby; birdwatching (prairie and boreal species reflect the area’s diversity); a vast network of snowmobile trails; and three golf courses. The towns of Lac du Bonnet and Pinawa in the southern part of the region offer med­ical facilities, grocery stores, and other ame­nities. There is also a marina at a private campground on the lake.

Categories
Cottage Life

Cottage Q&A: The definition of “cottage country”

What is considered “cottage country” around Ottawa?—Valerie Quinn, Barrie, Ont.

Well, according to Wikipedia, it’s “the Rideau Lakes area or parts of the Outaouais,” which is correct. At least, it’s been correct for a long time. If you’re asking because you’re, say, moving to Ottawa and you plan to buy a seasonal place, cottage country for you will probably depend on how much you want to spend, how badly you want privacy, and how far you’re willing to drive to get it.

“For most people, ‘cottage country’ is within a two-hour drive of Ottawa,” says Martin Elder, the owner of Martin Elder Real Estate Group. “They want lakes, not rivers. They want nature and lots of trees and no close neighbours.” But—if you’ve been reading this magazine over the last several years—you know that “cottage country” almost everywhere is evolving. “Everything is getting built up,” says Elder. Plus, supply is low and demand is high. A cottage that ticks all the boxes—the coveted two-hour drive time, lots of privacy, and the right price—is getting harder to find. 

“I say to people, ‘I’d love to sell you that, but it doesn’t exist—not at the prices we saw two years ago,’ ” says John Macintyre, a veteran Century 21 realtor based in Chelsea, Que. 

More people are moving full-time to the cottage or retiring to the cottage. “Many lakes that 25 years ago were considered cottage-only are now largely residential,” says Macintyre. (If a lake has no cottages on it, is it still “cottage country”?)

Bottom line: if availability and prices and lack of privacy push buyers to drive outside the traditional two-hour upper travel limit, and more cottagers move full-time to the traditional cottage lakes…who knows what we’ll call Ottawa “cottage country” in the future?

Don’t worry. We’ll update the Wikipedia page when the time comes.

Got a question for Cottage Q&A? Send it to answers@cottagelife.com.

This article was originally published in the June/July 2022 issue of Cottage Life magazine.

Categories
Cottage Life

Buy the Way: This couple renovated a cabin to set themselves up for retirement

The search: In 1985, Chatham, Ont., couple Don and Yvonne Dreise started buying fixer-uppers to renovate and live in. “We enjoyed doing a project from start to finish,” says Don. “Every couple of years, we’d sell and move to a home that needed more ambitious renovations.”

During summers, Don, a project manager at a multi-trade contractor, and Yvonne, a now-retired BMO customer service representative, would take their three children camping in a pop-up trailer. The family travelled to parks throughout southern Ontario, from Pinery and Sauble Falls to Bon Echo and Algonquin. “We were never interested in getting a cottage because we didn’t want to be tied down to the same place,” says Yvonne. “We wanted to experience something new every year.”

The compromise: In January 2021, the Dreises took a drive to visit Yvonne’s brother in Shrewsbury, Ont., a little community on Lake Erie, 25 minutes south of Chatham. On the way, they came across a beautiful tree-lined street with cottages on the water. One of the cottages, a 640-sq. ft. two-bedroom, caught their eye. The cottage was in terrible condition—it had rotted hardwood floors and a sagging roof with holes in it. To make matters worse, the buildup of frost every winter had dangerously shifted its foundation. “But looking past the necessary repairs, we also saw lots of potential in its location,” says Don.

The cottage was close to Rondeau Provincial Park, and there was a golf course and a zoo nearby—attractive amenities for prospective renters. On the other side of Rondeau Bay, a brewery and several restaurants were a short drive away. Eager for a new project, Don and Yvonne purchased the dilapidated cottage for less than $200,000 in a private sale and began renovations that March. Over four months, they gutted the interior, replaced the roof and stabilized the foundation. Don handled much of the work himself, adding interior panelling and insulation, as well as a 200-sq. ft. deck.

By June 2021, the hard work and about $75,000 in renovations had paid off. In between stays, the couple rented out the cottage: “Our guests became enamoured with it, and so did we,” says Yvonne. “That’s when we started talking about Rondeau Bay being the place where we might retire.”

The silver lining: Last September, the Dreises hosted a group at the cottage to celebrate Yvonne’s 60th birthday. “We had a great time, but we realized the cottage was too small,” says Yvonne.

Don and Yvonne began searching for bigger cottages or empty lots to build on. That fall, they snapped up a vacant lot two blocks away. They recently sold the first cottage to people who had been renting it since October, and they’re using the profits to build a larger cottage on their new lot this summer. But they’re also keeping their options open. “We’re always looking,” says Yvonne. “We just went for a drive one day and ended up falling in love with Rondeau Bay. So who knows what we’ll discover on our next drive?”

Realtor advice: Consider buying a property that doesn’t check all your boxes

Even if a cottage is small or lacks the access you desire, it still has value as an investment, says Doug Peterson, a real estate agent in Belleville, Ont. “You can always sell your property or build equity with it to afford something else.” Peterson adds that buyers should assess what’s most important on their checklist and what might be superfluous. For example, many buyers are simply looking for a place to escape the city and go for a swim or a hike. “You don’t need all the bells and whistles for that,” he says. But most importantly, Peterson recommends purchasing sooner rather than later—with the caveat that buyers shouldn’t overextend themselves to do it. “I’ve seen a lot of buyers get priced out of the market recently,” he says, noting that prices should keep trending upwards for the rest of 2022.

Have you recently purchased a cottage in a unique way? Tell us about it: edit@cottagelife.com

Interested in buying, selling, renting, or dreaming about cottage real estate? Subscribe to our new enewsletter, The Key.

Categories
Cottage Life

Buy the Way: This family saved money by buying land and building a yurt

The backstory: Toronto couple Brady Del Rosario and Claire Dagenais have always felt at home in a rural setting. While they both grew up in the GTA, Claire, a 37-year-old events and administrative consultant, often stayed at her grandmother’s farm in Bas-Saint-Laurent, Que., while Brady, a 39-year-old architect, was a regular at his grandfather’s trailer in the Ottawa Valley.

After their daughters Gabrielle, 8, and Cosette, 5, were born, Brady and Claire were eager to share similar experiences with them. “We’d go camping most summers, but we wanted a place of our own we could use year-round,” says Claire. In 2019, the family began searching for properties within a three-hour drive of Toronto. Also on their checklist: an acre of land and water access.

The compromise: With a roughly $200,000 budget, the family was priced out of Muskoka and the Kawarthas, where cottages and vacant lots started at almost $400,000. When the pandemic struck, prices soared even higher as demand for recreational properties skyrocketed. The family considered cheaper empty lots—even if they couldn’t afford to build a cottage on one quite yet. “We figured this was our last chance to get our foot in the door,” says Brady. “We decided to buy land so we could eventually build the cottage of our dreams.”

In the spring of 2020, the family booked a few viewings of vacant lots in Marmora, Ont., a small community located nearly two and a half hours east of Toronto. They fell in love with Marmora’s pristine farmland and majestic pine forests. That May, they found a wooded two-acre lot a short drive from town. They bought it for $150,000—slightly under the asking price—the following month. 

The family debated several affordable short-term building options, including bunkies and treehouses. “But then we thought, why not a yurt?” says Claire. In 2019, the family had rented a yurt during
a trip to Pinery Provincial Park in Grand Bend, Ont. They appreciated how a yurt required less upkeep than a cabin and offered more living space and protection from the elements than a tent.

In the summer of 2020, they purchased a DIY kit from Yurta, a company based in Greenwood, Ont. Over the next four months, the family regularly drove up to their property. Claire and the girls cleared branches and rocks off the land, and she and Brady built a deck to serve as the yurt’s foundation. The family assembled the 226-sq. ft. yurt on the deck soon after. That winter, they added a woodstove and stainless-steel chimney. All told, the yurt, deck, building supplies, and furnishings cost around $30,000. “Building the deck was a lot of effort, but working on our yurt together became a special bonding time for us,” says Brady.

The silver lining: Claire and Brady plan on building a permanent cottage within the next 10 years. But for the time being, the family is enjoying the yurt. They have since made the trek there at least once a month. During those visits, Gabrielle and Cosette can be found swinging in hammocks or on birdwatching expeditions in their little neck of the woods. “Our yurt has made us realize we won’t need a showstopping lakeside cottage,” says Claire.

Owner Advice: Is a yurt right for you?

You get a yurt for a fraction of the cost of a cottage
Starting from as low as $11,000, yurts offer an affordable point of entry for families with modest budgets. “Yurts are also expandable,” says Brady. “If you want more square footage, it’s just a
matter of adding some carpentry and fabric.”

If you aren’t a DIYer, yurts might not be the best option for you
Brady and Claire erected their yurt in a day, but building its foundations and flooring required months of work. If you aren’t handy with a power saw, and Ikea furniture assembly gives you nightmares, the added cost of hiring a contractor could make the project unfeasible. 

Yurts offer versatility and adaptability
Lightweight and collapsible, yurts can be packed into a trailer or moved around a property. “We built ours on a floating deck with adjustable footings,” says Brady. That makes yurts perfect for families with evolving plans. For example, Claire and Brady aim to use theirs as a guest house in the back half of their land once their cottage is built. 

Yurts aren’t ideal for the winter months
“Our yurt’s woodstove keeps us surprisingly warm, but we wouldn’t want to spend the night if temperatures dropped below -15°C,” says Claire. And since their yurt doesn’t have plumbing, the family uses a camping toilet inside a separate tent.

Categories
Cottage Life

Cottage mortgage payments could increase by 45 per cent in the next three years

Rising interest rates could cause cottage owners who took out a variable-rate mortgage in 2020-2021 to experience a 45 per cent jump in payments by 2025-2026, said the Bank of Canada in its Financial System Review. The bank did specify that this number is hypothetical and is based on further increases to Canada’s mortgage rate.

Considering the bank increased interest rates by 50-basis-points in both April and June, however, the chances of further increases are likely. The bank intends to reassess interest rates in July.

By increasing interest rates, the bank is attempting to cool market demand and combat the elevated inflation level, which reached a 31-year high of 6.8 per cent in May. While intended to lower the cost of living, the increased interest rates are causing a spike in mortgage payments.

“It’s like red flashing lights in our face. [Mortgage rates] have been climbing so aggressively, fixed and variable,” says Andrew Thake, a mortgage broker based in Ottawa. “Fixed rates were in the one to two per cent range a few months back, and now they’re almost at five per cent with the major banks.”

A five-year, fixed-rate mortgage tends to be the most popular mortgage package, Thake says. This means that the property owner is locked in at a certain rate for five years. Therefore, a property owner who took a mortgage out before the interest rates started to increase is currently unaffected. But once those five years are up and the property owner has to renew their mortgage, they’re likely to see a major jump in payments.

Similar to the 45 per cent increase in high loan-to-income variable-rate mortgages, the Bank of Canada hypothesized that a high loan-to-income fixed-rate mortgage taken out in 2020-2021 would also increase by 2025-2026, jumping 26 per cent. Mortgages obtained in 2020-2021 are expected to see the largest increase because they were taken out when rates were at record lows.

At the moment, Thake says the fixed-rate mortgages are rising much faster than variable-rate mortgages, which fluctuate and are based off the Bank of Canada’s overnight lending rate. This means that a variable-rate mortgage is giving people more purchasing power.

“If a household made $150,000, they had no debt, their current home was paid off with 20 per cent down, and they’re using a variable interest rate, they would qualify for a $940,000 loan,” Thake says. “But if that very same client used a fixed rate, they would qualify for about $820,000. That’s a massive difference.”

For Canadians who did take out large mortgages during the pandemic, the Bank of Canada says that these highly indebted households are a vulnerability to the financial system, especially if household incomes don’t increase along with interest rates.

But Thake says it’s unlikely we’ll see a major spike in defaulted mortgages in the near future. This is because anyone who took out a mortgage had to pass the mortgage stress test. This test shows lenders that you’ll still be able to make your monthly payments even if interest rates rise.

To pass the stress test, you have to show your lender that you can meet the Bank of Canada’s minimum qualifying rate, which was increased from 4.79 per cent to 5.25 per cent in June 2021, and is based on the mode average of fixed rates posted over the last five years by Canada’s big banks, or you must meet the mortgage rate offered by your lender plus two per cent, whichever’s higher.

The issue, Thake says, is that since fixed-rate mortgages have climbed so aggressively, they now sit around five per cent, which when you add the lender’s two per cent makes them closer to seven per cent. This means that potential buyers won’t be able to qualify for as large a mortgage as they could in previous years.

Additionally, since mortgage rates are rising so quickly, potential buyers might be pre-approved for a mortgage one week, but then no longer qualify for that mortgage a week later after the rate’s been raised. To make sure you’re on top of increasing rates, Thake suggests working with a mortgage broker.

“When’s the last time your bank called you and updated you on rates?” he says. “A broker manages a client like a financial planner does. We have a pool of 500 clients, and they get day-to-day devotion. We only really earn our living if we service that client and everything goes through smoothly.”

Categories
Cottage Life

Want a vacation rental with wow factor? Check out VRBO’s vacation rental homes of the year

The beauty of renting a vacation home is the opportunity to stay in unique properties across the country. For the first time, VRBO has created a list of the top Canadian vacation rentals from coast to coast based on guest reviews, star ratings, and family-friendly amenities. The selected vacation rentals vary by price point and location and include everything from a contemporary urban villa in the mountainous region of Quebec to a French-inspired chateau overlooking the Atlantic ocean. Check out the stunning photos below.


Looking for your next cottage rental? Visit our rental hub powered by VRBO

Tofino, British Columbia

This waterfront luxury retreat is a surfer’s oasis, sandwiched between two of Tofino’s best surfing spots—Chesterman Beach and Cox Bay. This beach house boasts three bedrooms, three bathrooms, an outdoor shower, radiant heated floors and ocean views from every room.

Price: Averages $845 a night

Book on VRBO

Golden, British Columbia

This Scandinavian-style chalet is a ski lover’s paradise. Ski-in or ski-out; it was truly made for a skiing group getaway. When you get in from a day on the slopes use the built-in boot and glove dryers to dry off your gear before warming up in the in-home sauna, hot tub or outdoors by the fire pit.

Price: Averages $1,125 a night

Book on VRBO

 

Banff, Alberta

This modern mountain estate is located in the heart of Banff with 360-degree views of the Rocky Mountains. It’s rated five stars for a reason, guests love the close location to the main street, children’s playroom, and fully stocked chef’s kitchen.

Price: $2,900 average price per night

Book on VRBO

 

 

Collingwood, Ontario

Get away from the crowds in the Blue Mountain region at this secluded family cottage overlooking Georgian Bay and the Town of Collingwood. Guests love the close proximity to the ski hills, spectacular views, expansive property and hiking trail access.

Price: $717 average per night

Book on VRBO

 

Port McNicoll, Ontario

This gated waterfront cottage is surrounded by 320-degree views of the Georgian Bay. The large dock can accommodate multiple boats should you choose to bring yours along. The private guesthouse and lakeside cabana make this property ideal for entertaining large groups.

Price: $2,500 average per night

Book on VRBO

 

Sainte-Beatrix, Quebec

Just an hour outside of Montreal you’ll find this contemporary chalet tucked away among the trees. Enjoy the mountain views from the floor-to-ceiling windows.

Price: $493 average per night

Book on VRBO

Charlevoix, Quebec

This family-friendly chalet is well-suited for the outdoor adventurer. Close by there are hiking, snowboarding, and snowmobiling trails, and not to mention a stellar view of the St. Lawrence River.

Price: $317 average per night

Book on VRBO 

Augustine Cove, Prince Edward Island

This modern oceanfront property has prime access to the cove and views overlooking the ocean. Enjoy the slower pace of PEI and try your hand at cooking fresh seafood from the ocean.

Price: $215

Book on VRBO

Blandford, Nova Scotia

This French-inspired, stone and timber chateau has 192 feet of private shoreline on the Atlantic Ocean. The architecture is only matched by the interior design elements that have been sourced from around the world.

Price: $1,000 average per night

Book on VRBO

Margaree Harbour, Nova Scotia

Situated along the Cabot Trail, this classic Cape Breton vacation home has been featured in numerous magazines including House and Home, Oprah Magazine, and The New York Times. Take in the rugged beauty of the coast from the wraparound deck.

Price: $806 average per night

Book on VRBO

 

Categories
Cottage Life

Secluded Ontario cottage rentals perfect for a summer getaway

With schools on the brink of letting out for the summer, it’s about to get a whole lot busier. If you’re looking for a place to retreat to, far from the throngs of people in the urban areas, we’ve curated a list of secluded Ontario cottage rentals where you can host a private family or friend getaway.

One cottage rental in Muskoka has its own outdoor sauna with stunning lake views, or if you’d really like to go off-the-grid, there’s a rental on a nine-acre island near Lake of the Woods. If life’s speeding up a little too quickly for you, book your secluded summer getaway now.

If you’re looking to book a vacation rental visit our hub by clicking here. We’ve partnered with VRBO to help you find your perfect cottage getaway.

Perched on High Lake in Muskoka, this newly renovated cottage is a short trek to nearby hiking trails and a small waterfall, Dee Bank Falls. This is the ideal getaway if you’re having a family or friend get together and want some privacy. Unwind in front of the fire pit with a clear view of the water or relax in the outdoor sauna.

Location: Huntsville, Ont.

Price: Averages $1,099 per night

Sleeps: 14

Bedrooms: 5

Notes:

  • Waterfront property
  • Outdoor sauna
  • Laundry on site
  • Outdoor fire pit
  • Kayak available for use

Click here to book


 

Rent a nine-acre private island on Shoal Lake near Lake of the Woods. The cottage boasts 3,000 sq. ft. of living space and includes a timber frame pergola with an outdoor fireplace. Note: between June 30 and September 1, you’re required to book a minimum seven-day stay with check-in and checkout both happening on a Friday.

Location: Kenora, Ont.

Price: Averages $788 per night

Sleeps: 12

Bedrooms: 4

Notes:

  • Private island
  • Internet included
  • Laundry on site
  • BBQ available for use
  • Outdoor fire pit
  • Private hiking trail around island
  • Kayaks and canoe available for use
  • Pets welcome
  • Minimum seven-day reservation

Click here to book


 

Fall asleep to the gentle sound of waves lapping against the cottage during your stay in this decked-out boathouse. The main cottage sits above the boathouse, but there are bunks inside the boathouse and an extra guest cabin nearby that can be rented at an additional cost. And did we mention it has its own private four-acre island!

Location: Kenora, Ont.

Price: Averages $401 per night*

Sleeps: 10

Bedrooms: 4

Notes:

  • Private island
  • Internet included
  • Laundry on site
  • Kayak and canoe available for use
  • Must bring or rent your own boat to get to the island
  • *Price varies depending on if it’s a weekday or weekend

Click here to book


 

Close to the borders of both Manitoba and Minnesota, this secluded cottage sits on the tip of an island near Lake of the Woods. Spend your days suntanning on the property’s beach or swimming off the dock.

Location: Nestor Falls, Ont.

Price: Averages $440 per night

Sleeps: 10

Bedrooms: 3

Notes:

  • Island property
  • Outdoor fire pit
  • Pets welcome

Click here to book


 

Categories
Cottage Life

Buying a vacant lot or a teardown? The pros and cons

Whether you’ve been priced out of the market for turnkey cottages or just frustrated that you haven’t been able to find your dream cottage, you might be considering starting from scratch with a teardown or buying a vacant lot. There are pros and cons to both options.

Location, location, location

“The best waterfront lots have already been sold and developed,” says Chris Winney, a real estate broker in the Land ‘O Lakes area, who sold more than a dozen vacant lots in 2021. If you’re buying a vacant lot, you might have to forgo those west-facing sunset views, the gently sloping and weed-free shoreline, and easy access to town and other amenities.

There are some prime lots that occasionally come up but the further afield you’re willing to travel the easier it will be to find an unspoiled plot of land that ticks off all your boxes.

When you do find a suitable lot, your biggest expense may not be the price of the land. If the site isn’t already serviced, you’ll need power, a water source, a sewage system, and road access.

Depending how far the lot is from existing hydro lines, the cost to run power to your new property can run into the tens of thousands of dollars. In 2021, one couple made the news when they were quoted $60,000 to run a line from the nearest existing pole, 440 metres away from the Minden-area dream home they’d constructed on a vacant lot.

One alternative would be to go off-grid with renewable energy, but you’ll need to invest in battery storage and perhaps even a backup generator in case the system is drained. Both will add substantial costs to your budget.

You’ll also have to install a septic system, drill a well or install a water purification system for water drawn from the lake, and if there isn’t already a road leading directly to the property you’ll have to enquire with the municipality to see if you’re allowed to have one built.

You should also know that financing a vacant lot can be difficult. Most traditional lenders will not give a mortgage for vacant land. If you have equity in your home, you might be able to fund the purchase with a line of credit. If not, you’ll have to turn to private lenders for a loan at significantly higher interest rates than a standard mortgage.

Budgeting for a teardown

The main advantage to buying a teardown is that the hydro, water, sewage system, and road access are likely already in place. But there are still potential costs to consider.

For one, in the purchase price you’ll be paying for a building you have no intention of using. Plus, you’ll have to pay for the demolition of the original structure and disposing of the debris. If toxic materials such as asbestos or lead paint are found inside, this will increase the removal costs. If the property is water access, you’ll need to factor in renting a barge to haul in equipment and haul out the trash.

Before you put in an offer, contact the local municipality to find out if there any restrictions that would impact your planned structure. And don’t assume you can simply rebuild on the existing footprint. Some municipalities require new buildings to meet current zoning setbacks.

You may also have to replace the existing septic system, particularly if your new structure expands on the original square footage and number of bathroom fixtures.

Patience is a virtue

Whichever route you choose, Winney points out that with current building conditions you’ll have to be patient. Most reputable builders are booking contracts a year or two out and ongoing supply chain issues mean that almost everything you’ll need to build a cottage will take longer than usual to order.

Categories
Cottage Life

The cottage region in Eastern Ontario where you might still score a deal

Have you been dreaming about owning a waterfront property in the Outaouais region? A short drive from the nation’s capital, it offers cottage owners (and renters) vast outdoor spaces, waterways, recreational activities and access to cities and towns. 

The Outaouais is a year-round destination. In the winter, it’s home to ski resorts, in the summer months, cottage rentals are popular, and the beaches can be busy. The area is 33,000 square kilometres in size and has more than 15,000 lakes and about a dozen rivers. This makes the opportunity for waterfront property seem even more accessible, although it also means buyers have had to act quickly to buy property because of demand. 

The Outaouais area has seen significant growth in a hot market. John Macintyre, a veteran Century 21 real estate agent in Chelsea, Que., knows the region well. He noticed the increase in demand even before the pandemic, but it continues to grow. “Those nice properties that everybody wants on the big lakes, with the good waterfront and the great views, those places are always scarce,” he says. “So even going into the pandemic, the market was very strong.”

And while the location is accessible from Montreal, Kingston, and even Toronto, most buyers are from the Ottawa-Gatineau area. Most buyers are looking for a property within an hour and a half or less. Are you willing to drive up to two hours? Mcintyre says you’ll have more options. 

These properties don’t last long, so decisions are being made quickly.  “It doesn’t matter how motivated you are. The property is likely going to sell in three days. The logistics of trying to get here and look at a property are tough,” says Macintyre. “People buy recreational properties first with their heart and then with their head. They fall in love with the view, the waterfront, the privacy, the connection to nature somehow.”

We can’t overlook that the pandemic has caused the increased demand. “Lifestyle is a big driver. People don’t have to commute to work, and they can spend more time at their recreational property.” He added that the lack of vacation and travel options in these recent pandemic years are a factor as well.

Whether you’re just visiting or thinking about buying in the area, here’s what to do in the Outaouais:

Visit Parc Omega

With over 2,000 acres of land, Parc Omega is a living museum, home to Canadian wildlife in their own habitats. Drive through, take a walk through the trails, or visit the historic farmstead.

Go golfing

Break out the clubs and hit the greens at one of the local golf courses set against the area’s scenery. Some are within minutes of downtown Ottawa. 

Hit the slopes

Ski resorts are inviting for novice and experienced skiers alike during the winter months, and there are no shortage of après-ski opportunities to enjoy as well.  

Relax at Nordik spa

The Nordik Spa in Old Chelsea, Que. features heated outdoor pools, cooling tanks, saunas, fireplaces, and lounge chairs. After you relax, grab a bite to eat at one of their on-site restaurants. 

Enjoy the beach

There are beaches and lakes to enjoy throughout the Outaouais area. Choose a quiet spot or find a bustling beach filled with activities, such as kayaking or beach volleyball.