The COVID-19 pandemic will leave significant damage to many sectors of the Canadian economy in its wake. One sector that appears to be not only escaping this damage but thriving during the pandemic, however, is the cottage real estate market. Cottage sales have actually surged in recent months. Many speculate that this has much to do with the COVID-19 pandemic itself. An increased number of people are now able, and sometimes encouraged, to work remotely which makes extended stays at the cottage that much easier. Also, lengthy periods of quarantine in urban centres have sparked a desire in many for an increased connection with more rural landscapes.
We have blogged on issues relating to cottage ownership several times in the past and thought it would be helpful to those considering the purchase of a cottage during COVID-19 to have the links to many of these blogs in one place. The purchase of a cottage property brings with it unique issues in addition to the those generally considered when buying real property. Click here to review the three top things to consider when purchasing a cottage.
Special considerations also come into play when a cottage forms a part of your estate plan. A family cottage is often a treasured place where many memories have been made, and therefore often requires extra attention when deciding how best to pass it on to your loved ones. There are also important tax considerations that cannot be ignored. We have written numerous times on estate planning for the family cottage (see here and here).
If you have decided to share cottage ownership with friends or family, then a well-drafted, comprehensive Cottage Agreement is an absolute must. The very process of negotiating what should go in the Agreement forces everyone involved to turn their attention to the many and varied issues that often arise with shared ownership. It also facilitates the open discussion of potential problems areas before they actually arise. Click here and here for more information on Cottage Agreements.
We wish you success in finding the cottage of your dreams!