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Question for cottage owners
- Thread starter cbcanada
- Start date
Yup, and most of those leases have a renewal (or expiry date). Many were 99 years from the original date, so at 99 years + 1 day you either walk away or pay the new price. Scary stuff. That being said, many of the rents I have heard of are quite cheap (basically covers property tax for the land owner).
Personally I would rather own cottage+land or rent. Land is where the investment is, the building is just an expense.
Personally I would rather own cottage+land or rent. Land is where the investment is, the building is just an expense.
I worked with a guy who had a cottage up near sunridge (?) on some leased land...i think it was reserve land or something. Yeah well the lease came up and they didn't renew for whatever reason. He had one last summer to get anything of value outta there before they bulldozed it. Lol. It was a great financial decision on his part.
Not so scary. 99 years from now, I'll be 6ft under.
Consider the value of land nowadays and the fact that developers are buying land 5 to 15 years ahead of planned development I wouldn't be surprised if it's sold.
Except I haven't heard of any new leases (not saying they don't exist). In many cases, it is 99 years from when somebody's grandparents signed the lease (well within my lifetime). Things would be different if the cottages were cheap, but people are still looking for 6 figures to assume the lease. That is a lot to invest in something that isn't permanent.
You don't sign a new 99year lease...
I was looking at property for a while. Price of a condo in Costa Rica with all amenities was cheaper than a cottage here. Property prices have collapsed with Americans selling their second homes to deal with financial pressures back home. I'd rather have an all year round bolt hole that I can rent out too when not using it than something that would lay idle for half the year cryogenically frozen.
there are several models for this, do the arithmetic and decide. If you get a place you want to be for a term you are comfortable with fill your boots. But be careful , the cottages on reserve land often have short leases and there is no guarantee you'll get signed a second time. You can also have a lease where the property owner is responsible to pay out for leasehold improvements (buy your cabin) . You can also find cottages being dumped at a great price because the lease will be done soon, and it looks great on paper.
You don't need a real estate agent, but you DO need a lawyer with real estate experience to look at the deal before you ink anything. It will be the cheapest $500 you ever spent.
You don't need a real estate agent, but you DO need a lawyer with real estate experience to look at the deal before you ink anything. It will be the cheapest $500 you ever spent.
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