Are you dreaming of spending the holiday in someplace cozy yet safe? A second home is a home away from home. You can escape the stressful city life and get rejuvenated for the upcoming work week. The ongoing pandemic has made us realize- an investment closer to home is better.
You can save on transportation costs, time, and, most importantly, safer than hopping on a plane to Florida. Owning a vacation home costs money, even if you’re not living in it. Help cover costs, like maintenance, upgrades, property taxes or even mortgage payments, by renting the property out for short periods. If you’re an owner, you can use your equity to help buy your next property.
According to a recent Expedia survey of 1,000 adults across Canada, 29% took a local road trip this year, with 29% planning one for the future. Airbnb predicts that travellers will want to stick reasonably close to home, and Vrbo reported that demand for cabins increased nearly 25 percent year-over-year. In August 2020, “cabins in Canada accounted for 10 percent of all searches — more than double the searches for apartments.” The cabin fever is picking up and driven by homeowners in Toronto selling off their downtown lots and moving up North.
CREA’S Composite House Price Index (HPI), an estimate of average housing prices that controls housing quality and size, shows that housing prices in Simcoe County, also north of Toronto, accelerated faster during 2020 than they did in the GTA. Similarly, the growth in Barrie’s housing prices, another area north of the GTA, was more quickly than that in urban centres to the south.
When short-term rentals were allowed to resume operations in June 2020, the demand has been ever rising. The bidding wars have made their way into the cottage country surrounding the GTA due to international travel restrictions and the option to continue working on their stay closer to home. There’s a solid demand for cottages with good Internet access as many continue to work from home and would like to continue working on their trip. The spike in the cottage rental price can also be linked to the cleaning service protocols that include sanitizing and disinfecting.
What is different now is that a larger pool of prospective buyers has jumped into the market, competing for even fewer properties. The relatively high demand has put upward pressure on housing prices in cottage country. If you plan to invest in a second home, it is a great time to jump in! There are several items to consider when buying a getaway. You have to analyze if you can afford to buy a second home and a good investment. Shortlist a couple of closer to your home areas to avoid longer commute time and higher transportation cost.
Owning a vacation home costs money, even if you’re not living in it. Help cover costs, like maintenance, upgrades, property taxes or even mortgage payments, by renting the property out for short periods of time. Vacation homes usually require a larger down payment and special insurance. You’ll most likely need flood coverage if your vacation home is near the water. Also, if you buy a fixer-upper, you might need funds to renovate the property.
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If you plan to buy a second home, please feel free to reach out to us for your mortgage financing needs. We can help you to get all your mortgage-related queries answered. You can reach us at 905.997.7001 or email us at email@example.com.