I always have at least one client looking to purchase an income property in town, be it a single family home, a duplex or triplex, or larger multi-unit buildings. This type of bricks and mortar investment is, typically, a stable way to invest money to earn extra income monthly or as part a long-term plan. However, clients often do not consider another potential income property: The cottage.Sales of waterfront properties have seen a decline over two years ago, with a small increase last year. This may be due to increasing prices in larger centres like Toronto so that there is less left over to purchase recreational properties, or because of fears of a bubble ready to burst in those same centres. However, families will always want to get away from it all at the cottage. Renting, then, remains a popular options for couples, families, and groups of friends.A quick scan of the various cottage rental websites that cover the area reveal a very healthy market. Its easy to see cottages renting for over $900 a week (for a smaller place) to over $2000 a week for more luxurious accommodations. Any property that can gross $3600 a month is worth a look.Beside the ability to make money for the owner, purchasing a cottage as an income property has other benefits. Where a traditional multi-unit income property may have long term tenants, thus making the raising of rents difficult and the potential for problems associated with difficult tenants, a cottage usually turns over tenants every week or two. Send in a cleaning team and you’re ready for the next tenants. Another benefit is that you, the owner, can enjoy the property should you choose. The property is there for your enjoyment, while it makes money when you don’t need it. The Spring market is heating up, and many cottage properties will soon be coming up for sale. Not every one of these is a good fit for income generation, but many will be. A Realtor can assist you in not only finding these properties, but will also help you decide whether or not the property you like will work as an income maker.
Buying a Waterfront Property for Income
- January 3, 2014