I have zero sympathy for business people and speculators who purchased cottage property(ies) during the peak covid craziness a few years ago.
We had several cottages on our lake sell for crazy prices and they immediately went on the rental market. Most of these places went on the market about 2 years later when interest rates spiked and and were listed at the purchase price or slightly higher. LOL. Needless to say, they just sat there for unsold while owners who could no long afford to carry a cash negative rental cottage slowly came to the realization that the market had changed.
In one example purchase price was $1.6M, originally listed for $1.7M, sold for $1.3M. With real estate commission this is a loss of about of $400K.
IMO, given the state of the economy, trade discussions, reduction of discretionary purchases, general uncertainty etc..... we probably have not seen the bottom of cottage prices. If it was me I'd get the place assessed and sit down with an accountant to determine the capital gains taxes you have to pay now. Who knows where capital gains taxes are going to go in the future. The inclusion rate is unchanged at 50%, but this might change for the worse in a future where a government are looking for more revenue. It might make sense to sell now vs. waiting for further price drops.
We had several cottages on our lake sell for crazy prices and they immediately went on the rental market. Most of these places went on the market about 2 years later when interest rates spiked and and were listed at the purchase price or slightly higher. LOL. Needless to say, they just sat there for unsold while owners who could no long afford to carry a cash negative rental cottage slowly came to the realization that the market had changed.
In one example purchase price was $1.6M, originally listed for $1.7M, sold for $1.3M. With real estate commission this is a loss of about of $400K.
IMO, given the state of the economy, trade discussions, reduction of discretionary purchases, general uncertainty etc..... we probably have not seen the bottom of cottage prices. If it was me I'd get the place assessed and sit down with an accountant to determine the capital gains taxes you have to pay now. Who knows where capital gains taxes are going to go in the future. The inclusion rate is unchanged at 50%, but this might change for the worse in a future where a government are looking for more revenue. It might make sense to sell now vs. waiting for further price drops.
