Buying a cottage: what you need to know

IN COLLABORATION WITH PROMUTUEL ASSURANCE

When buying a second home, you need to determine the location you want, establish your needs and budget, and evaluate a number of criteria that are not the same as when buying a primary residence. And don't forget to store around for cottage insurance! Here's a simple guide to help you get started.

THE MOST IMPORTANT CRITERION: LOCATION

"Location" is the watchword when it comes to real estate... even more so when it comes to choosing a second home! Do you prefer the forest or the water? Do you want to be close to the city or in the heart of nature? Make a list of what you're looking for in a 4-season cottage. For example

Access to a body of water, beach or dock
Proximity to nature (lake, forest)
On-site or nearby activities (water sports, hiking, skiing, hunting, fishing, etc.)
Proximity to services (convenience store or grocery store, gas station, bank, etc.)

Don't forget to consider the driving time between your main residence and the cottage you're interested in. Is there traffic to get there, especially during peak periods (long vacations, construction vacations)? In winter, are the roads easily accessible and cleared of snow? Spending more time on the road than in your cottage is not a good idea!

If you like a residence enough to consider buying, test-drive to it during rush hour to find out for yourself.

services: ESSENTIAL POINTS TO CONSIDER

You probably have a list of criteria in mind (number of bedrooms and bathrooms, turnkey type or renovation project, basement, garage, total surface area), but have you thought about municipal services? Winter snow removal, connection to city sewers or a septic tank, drinking water or an artesian well: these are other points to consider when buying a second home.

Some cottages have their own septic tank, which must meet certain environmental standards and be emptied regularly. It's an expense you rarely think about when you live in a house connected to the municipal sewage system. What's more, it's important to ensure the quality of the water if it comes from an artesian well or is drawn from the lake.

What's more, if you want to occupy your cottage on a regular basis, and even - why not? - work there, find out about cell phone reception and the possibility of a high-speed connection. Some more remote locations can only rely on satellite reception, which is more expensive and not as efficient.

Finally, if you're thinking of settling near a lake, don't forget to take note of the rules governing servitudes and access to the water. Does the owner have a right to use the dock, or only a right of way? Is it possible to launch a boat? This will help you avoid disappointment... or conflicts with your future new neighbors!

THE PURCHASE BUDGET: WHAT TO INCLUDE

Many experts consider the purchase of a second home to be an expense, not a real estate investment. Why is this? Because, in addition to the upkeep of two buildings, you'll also have to pay the mortgage, school and municipal taxes, insurance and all the other usual expenses of a residence (heating, electricity, snow removal, Internet, etc.). So you need to plan to spend enough time there to make these expenses worthwhile. And if you want to rent it out while you're away, you'll also need to make sure you're doing so legally, and think about maintenance and cleaning costs, for example.

All these expenses must therefore be included in your purchase budget, in addition to incidental costs (inspection, brokerage fees, notary fees, transfer duties, moving, minor work, decoration, additional furnishings) and gas for the journey (a recurring expense), in order to get a realistic picture.

THE INSPECTION, A STEP NOT TO BE SKIPPED

Just as with the purchase of a principal residence, the inspection of a cottage is a crucial step not to be overlooked. A pre-purchase inspection gives you an overview of the property's actual condition: the lifespan of windows and roofing where possible, urgent work or work to be scheduled, signs of past water damage or telltale signs of damp are all things the inspector will have his eye on. Not only will this give you some protection in the event of the discovery of a hidden defect, but it will also give you a clearer idea of the additional costs that could be associated with your purchase, such as replacing windows or changing the water heater.

SECOND HOME INSURANCE

Insurance coverage depends on how you intend to use your cottage. To insure a secondary residence that is lived in regularly throughout the year, it's a good idea to take out additional "all-risk" coverage, which offers more comprehensive protection. Whether you're insuring your cottage or your main residence, homeowners insurance needs to be shopped carefully. For example, some companies offer a multi-dwelling discount if you need to insure more than one property.

Since one informed homeowner (or future homeowner) is worth two, it pays even more to keep all these tips in mind when looking for your second property! The search for a year-round cottage has many particularities, which is why you need to be well-informed and think of everything. Finally, there are many ways to finance the purchase of a second home. A mortgage broker or advisor from the financial institution of your choice will be able to guide you through the process. Buying a cottage is an exciting step, because it promises relaxing weekends away from home, and even lovely summer and Christmas vacations. It's even more relaxing when you know you've made a well-informed and well-advised purchase!