(NC) Are you dreaming of your own little piece of paradise where you can spend summer days? With the skyrocketing price of gas and the complexities of pandemic travel, your vacation goals may have shifted a little closer to home in recent years, boosting the appeal of cottage ownership.
Here are some things to consider if you’re thinking of buying a cottage.
Start with a plan
Not sure where to begin? To see if your dream is possible, try the Financial Consumer Agency of Canada’s free online financial goal calculator. By putting in a few numbers, you can create a snapshot of your current financial state and see if your plan is realistic based on your monthly income.
Time it wisely
You may need to take some time to save up when it comes to buying a cottage. How long you give yourself to achieve your goal will determine how you plan to save and invest. If you give yourself a couple of years, you’ll want to keep your money protected and easily accessible. Shorter term savings options include savings accounts, short-term deposits and short-term guaranteed investment certificates, also known as GICs.
If you think it will take longer to achieve your goal, you may consider investing your money in bonds, mutual funds or long-term deposits. Keep in mind that some investments are complex and can be risky. Talk to a financial advisor to find the investment that is right for you.
Budget for extra expenses
Owning a second property can be expensive. Along with the down payment and maybe a second mortgage, be sure to budget for maintenance costs, property taxes and utilities. By going through a planning exercise, you may find that renting is a better fit.
Find more information at canada.ca/money
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