With the summer heat upon us, it’s time to pack our bags and venture out for some fun in the sun. And cottages are the preferred choice for many Canadians who are looking for a relaxing retreat.

 

 

 

 

 

 

 

 

“There’s lots of places to relax and enjoy, with superb boating waters around Mahone Bay and Chester Islands, nature walks, natural beauty, a rocky coastline and beautiful parks,” says Cathie Billings,

broker and owner at Royal LePage People First. She also notes that there are many small communities that have seasonal suppers, activities for reasonable prices, and seafood and fresh fruit aplenty. “There are also card parties, bingo, and music festivals. Friendly and helpful residents always make visitors feel wanted,” Billings says.

 

With high rental rates, investors have the opportunity to make some quick cash. For a standard two bedroom beachfront cottage during high season, the average rental rate ranges from $750 per week up to $1,600 per week, depending on amenities, according to the South Shore Tourism Association. High season is between May and October. During low season rates dip to about half that amount.

 

With over 1,000 lakes, dazzling waterfalls, hiking trails, pine forests and golf courses, Muskoka, Ontario offers something for everyone. Buyers range from Baby Boomers, to couples, to business owners looking for an investment.

 

The areas most sought after include Lake Muskoka, Lake Joseph, Lake of Bays, Almaguin Highlands and Huntsville. On average, waterfront properties range from $200,000 to $6 million, according to Royal LePage.

 

“Muskoka is truly a gem,” says John O’Rourke, broker at Royal LePage Lakes of Muskoka. “Waterfront cottages are always in demand.”

 

Many of the newest cottages in Muskoka are a minimum of 3,500 square feet, and include large floor to ceiling stone fireplaces, hardwood flooring, granite countertops, state of the art kitchens, 10-foot ceilings and saunas.

 

Red Leaves, a large development on Muskoka’s Lake Rosseau, is promoting a year-round lifestyle and is quickly becoming a hot spot among buyers. This project includes lakeside cottages, as well as a Marriott Hotel.

 

“Lake Rosseau is more sought after than Lake Muskoka,” says Murray Lepard, sales representative at Royal LePage Lakes of Muskoka. “Generally the cottage lots are larger, there’s more undeveloped land, the waters tend to be clearer, and it covers a larger area and therefore isn’t as busy as Lake Muskoka.”

 

Summer season is when most tourists tend to book a stay at a cottage. Rental rates during this period vary immensely according to lot size, location and amenities, but typically range from $800 to $3,000 per week. During the spring and fall, rental rates decrease by about 30%, according to Cottage Country Travel Services.

Situated in the south-central region of British Columbia, Vernon offers cottage buyers an abundance of lakes and beaches in the summer, and skiing and hockey in the winter.

 

The areas of Silver Star Mountain, Predator Ridge and the Rise are the most popular due to their proximity to golf courses. Properties in this area range from $400,000 to $700,000, notes the report.

 

Recreational property in British Columbia boasts some of the most expensive prices in the country. The

cost of an average waterfront cottage in Vernon is between $999,000 and $4 million, according to Royal LePage. “In the last five years, prices have doubled in the recreational property market and prices are expected to continue to increase into next year,” says Riley Twyford, broker and owner at Royal LePage Downtown Realty.

 

Typical buyers and residents in the area tend to be seniors and retirees, but recently more young buyers have begun to purchase in Vernon.

 

Rental rates vary greatly according to location and amenities. Typically the rental rate for a two-bedroom cottage starts at $150 per night or $750 per week, and most require a minimum three-night stay, according to Vernon Tourism. Since many cottages are year-round, high season tends to be during holidays such as Christmas and Canada Day.

The east coast encompasses the most reasonably priced recreational properties in Canada. Nova Scotia, New Brunswick and Newfoundland have average prices of $149,700, $146,625 and $86,500, respectively, for waterfront cottages, notes the report. Many Canadians are opting to purchase in these provinces simply because of affordability.

 

However, if you don’t live in the east and are hoping to secure a cottage closer to home, there are certain areas in Canada that offer inexpensive options.

 

A land access cottage in Cranbrook, located in southeast British Columbia, has an average starting price of $200,000, according to the report. Cranbrook is about a four-and-a-half hours’ drive from Calgary, and the Rocky Mountains are visible from the city.

 

“The surrounding mountains, lakes, rivers, hiking and biking trails, hunting, fishing and camping opportunities, as well as available golf courses and ski hills, appeal greatly to those who are looking for a four-season recreational opportunity,” says Donna Dreger, administrator at Royal LePage East Kootenay Realty.

 

Alberta, like British Columbia, generally has pricier properties. So if you’ve got your heart set on a waterfront property, you might have to look elsewhere. If you’re more flexible, then Lac Ste. Anne is located about a three-hour drive from Edmonton and offers non-waterfront cottages from $150,000.

 

Saskatchewan still boasts some affordable cottages, though none are located on the water. The price of cottages has almost doubled in most areas in recent years. However, a land access cottage in Last Mountain Lake, Regina Beach, or Qu’Appelle – which are all less than 90km from Regina – can still be purchased for under $150,000.

 

Manitoba’s Lac du Bonnet, about one-and-a-half hour’s drive northeast of Winnipeg, offers waterfront cottages from $169,000, according to Royal LePage.

 

In Ontario, cottage areas are aplenty. Sudbury, Rideau and Kingston all have properties starting under the $200,000 mark. Sudbury lies about 400km northwest of Toronto. Rideau and Kingston are about 400km and 250km northeast, respectively.

 

However, it’s North Kawarthas that could be considered a diamond in the rough. It offers standard waterfront cottages from $125,000 to $175,000. “North Kawarthas has similar terrain to Muskoka, only it’s much less priced,” says Bruce Switzer, manager at Royal LePage Frank Real Estate. “It’s a two-hour drive or less from Toronto, and when the HWY 407 is extended the demand will be even higher.”

For those who dream of heading to a cottage this summer but don’t have the funds, there’s no need to fret! There are alternatives to buying.

 

The most common option is renting. Renting a cottage is a great way to test the waters before you buy so you can decide whether or not you like the area.

 

Rental rates generally work on a weekly basis. For a standard three-bedroom cottage, the weekly rate can be as low as $300 in the Atlantic Provinces, to as high as $1,750 in Ontario and the Western Provinces.

 

Another option is buying into a fractional ownership, which is where you share ownership with others, and are given a portion of high and low seasons for your stay. This idea is better perceived than a timeshare because with fractional ownership you’re given ownership interest. Fractional ownerships vary in price depending on the area and size of the cottage, and how many buyers are pitching in to purchase.

 

Whether you decide to buy or rent, one thing is certain: a cottage is the perfect place for entertaining and relaxing. “The cottage is an oasis for most people who have hectic business and family lives,” says Lepard.

 

 

More than 20 years ago, Julie Poore and her husband purchased a cozy little cottage just 15 minutes outside of Orillia for $40,000. Now, after spending about $100,000 in renovations, the recreational property has become a permanent residence worth $257,000.

 

“We bought this place from our friends when they upgraded,” says Julie. “We had every intention that eventually this would become our retirement home.”

 

Originally living in a condo in Toronto, Julie and her husband loved the fact that they could drive up to the cottage on weekends, and be back for work by Monday morning.

 

When her husband lost his fight with cancer in 2003, Julie knew it was time for a change. She found that her company, London Life, had a branch in Orillia and would allow her to transfer. By April 2004, she was able to move into the cottage.

 

It was then that Julie started to think about renovations. She obtained three estimates on the property from various builders. Julie settled on the one she was most comfortable with, price and reputation wise, Wes Brennan Contracting of Orillia.

 

She turned the one-floor 750 square foot cottage into a two-floor home, complete with a master bedroom and ensuite on the main floor, and four bedrooms upstairs.

 

“The cottage was built in 1934 and I wanted to preserve as much of the old cottage as possible,” she says. “We raised the existing property onto the second floor, and rebuilt the first floor.”

 

Tough building and environmental codes made the job quite daunting; but by hiring a great builder, Julie was able to overcome obstacles such as railing requirements, and overextending the deck.