Renting vs Buying a Cottage: Which Option is Best for You?
There is nothing like spending a week by the lake at the cottage. It is one of the best ways to spend your time off during the summer. If you are like many Canadian cottage goers, you make it yearly occurrence, with some going up North every weekend.
If you do go to cottage country frequently, it starts to make sense for you to weigh the pros and cons of renting versus buying a cottage. When you consider the cost of a yearly family vacation against the cost of a mortgage for a cottage, especially if you are renting a cottage on multiple occasions during the year, then it is definitely a decision worth considering.
The Arguments for Buying
Obviously there are financial considerations to factor into your decision to buy a cottage. Here are some things to consider if you are thinking about buying:
- It’s yours – This is perhaps the best part of buying. It’s your cottage and you can make it uniquely yours and go whenever you want
- Rentals can help offset mortgage costs – reducing the financial strain of owning a cottage
- Renting your cottage to other cottage goers is fairly easy today
- From a financial perspective, it can be a great investment when done properly
- You can buy in a location that you prefer
- In the long run, it is more cost effective than the average family trip
The Arguments for Renting
Renting a cottage is very common among Canadians. Here are some arguments for why you might want to continue to rent a cottage rather than buy:
- You can rent a different cottage each year
- You don’t have the liability that comes with being a cottage owner
- You are not tied into an additional mortgage payment and financial responsibilities
- You have the flexibility to explore other vacation options – you won’t feel obligated to go to the cottage for every vacation
- There is less risk involved in renting
- You don’t have to worry about additional costs such as cottage maintenance, upkeep, hydro, etc.
- You don’t have to worry about renting it out when you are not using
There are valid arguments on both sides of the buy versus rent debate. It really comes down to what is best for you. Do you rent a cottage during the summer? Is owning a cottage something that you would like to explore in the future?