VACATION PROPERTY: Is It A Worthwhile Investment?
DMM DEPARTMENT MB Enterprises
Is it Worthwhile buying a vacation property, is a major
As an example we can presume that the Purchase price is
question that everyone needs to ask after the effects of the
$500,000. It doesn’t matter you use cash, or mortgage/ home
Pandemic, COVID-19 in the Real Estate sector in Canada. It
equity, or a line of credit. Furthermore, a combination of
is always considered as a good time spending with the loved
payments, there are some other costs that needs to be
ones and with close family members. However, the question
considered. If for instance you have purchased it on money
that needs to be asked is, IS IT A GOOD DEAL?
that you borrowed, despite the current mortgage rates being 2%. Therefore, in the long run, the interest rates are most
The benefits of owning your own vacation property in form of
likely to go higher. On a property that’s worth $500,000 there
a small cottage, or a nicely located home is always a benefi-
will be an initial cost, i.e. 4% or $20,000.
cial idea in terms of enjoying the benefits. It will definitely help in providing a quick weekend charge for the next week, and
THE FINANCIAL PERSPECTIVES:
getting relaxed from the busy schedules, and a full of hassle
The financial perspective in this regards says that it might not
life. From an emotional point of view, it’s always considered as
be a good idea to invest in times of on-going financial crisis
something you can’t miss. However, what needs to be
that relates heavily to COVID-19. The costs can be even
pondered are the financial implications, i.e. from a financial
higher for those properties or cottages that are old, this
point of view.
includes a property with amenities and high fees.
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MBE BUSINESS MAGAZINE NOVEMBER 2020
W W W. M B E F O RYOU. C O M
