5 QUESTIONS TO ASK YOURSELF BEFORE BUYING A RECREATIONAL PROPERTY

Do you dream of escaping the daily grind in the city to spend time with your loved ones in a recreational property? It’s a huge investment and major life decision to be considered. Ask yourself these questions first before you say “yes” to the vacation home of your dreams.

1. WHAT IS MY GOAL WITH THIS PROPERTY?

The most important thing is “What is your intention and what will you do with this property?”. Do you intend to keep it for personal use? Rent it out for part of the year? What about being close to recreational activities? Knowing your objective will dictate what factors you should weigh in on for your purchase.

2. WHERE DO I WANT IT TO BE?

It is very crucial to think of the location. Do you want privacy and seclusion, a beach house, country property, right at the ski hills or close to downtown, hospitals, supermarkets and restaurants? Will you be commuting, driving, taking your bike or walking to your recreational activities and interests?

3. AM I PREPARED TO TAKE ON MORE RESPONSIBILITIES?

Double the home, double the responsibilities. While this will not be your main residence, maintaining it will take the same time and effort. Think about yearround maintenance - a caretaker, lawn services and snow removal services for when you are not there? Now, think about the money – mortgage payments, taxes, utility bills, maintenance costs and emergency expenses for repairs.

4. CAN I GET INSURANCE FOR THE PROPERTY?

There are all kinds of recreational properties out there - cottages with docks on the water, homes with wood burning fireplaces, septic systems, wells and oil tanks. It my not be easy or straightforward to get them insured. Call your local insurance broker who specializes in your property type for advice on your coverage.

5. WHEN IS A GOOD TIME TO BUY?

There is no single answer to this one. The only good time to buy is when you are ready. Don’t make hasty decisions - you need to make sure that you are financially and mentally prepared for this endeavour. In all cases, it is best to connect with a local Real Estate professional to guide you in your search. More questions? We would be happy to discuss them with you!

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• The Donation Tax Receipt will offset taxes payable on withdrawals

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Create a legacy of giving to the charities and causes that matter most to you. Contact your financial advisor or Canada Gives to learn more.