When it comes to buying a cottage, the most rational of human beings seem to lose it. We see the lake, imagine ourselves barbecuing on the deck, our children jumping off the dock, and it’s game over. What should be a rational decision quickly becomes an emotive one. One of the key selling points of our cottage was a little frog game my son discovered in one of the bedrooms. The bunk beds were another. I honestly didn’t realize that our cottage was “off the grid” and what kind of lifestyle that would entail until after we bought it. It didn’t matter. It was love at first sight.

Chris Winney, a real estate agent with Royal LePage, in the Land O Lakes area in south eastern Ontario, and who lives year-round at her cottage, has developed “PAWLOST.” She uses this tool to help her clients evaluate a property’s true value. “Buying a cottage should be an emotional experience. People are buying these properties to make family memories,” says Winney. “PAWLOST describes what buyers are looking for.” She finds it helps her clients stay grounded, so they can find the right property and make a good investment.

PAWLOST Evaluating a Property’s Value

• P - Privacy - It’s nice to have neighbors, but not close enough to have to interact with them. Check for trees, if the leaves are in full bloom and you can’t see them then it’s OK.
• A - Access - Is the property accessible for all four season; can you get to it in the winter; is it accessible by road not boat? Generally, if a property is difficult to get to, it should be reflected in the asking price.
• W - Waterfront - Incredible privacy, level or gently sloping lot, sandy beaches, no weeds, and gorgeous for swimming, this is the first best choice according to Winney. “You want to be able to walk down to a level sandy beach and have the water deep enough off so you can dive in off the dock.” Steps that go down to the waterfront reduce a property’s value. One thing buyers need to be aware of is, who owns the waterfront. In southern Ontario, some townships own the 66 foot shoreline allowance. Cottagers can buy their allowance, and will have to do so if they are seeking a mortgage. Buyers should budget an additional $35oo plus recommends Winney.
• L- Lake - Generally the larger the lake, the better the return. “You can do more things on a larger lake,” Winney explains. Make sure there are no boating restrictions by checking with the lake’s association rules.
• O - Other - These can positively or negatively affect a property’s value. Some examples include: does the cottage back onto a highway; is it situated beside crown land; is it located in a busy part of the lake, is high boat traffic? Winney recommends visiting the property many times before you buy it; go when it’s busy i.e. on weekends and holidays. It’s important to do your research.
• T - Travel Time - Most people have a number in mind when they come to see her. People coming from Toronto are usually looking for something that’s 3 to 3 1/2 hours a way, while Ottawa folks want a 2 hour commute. Winney notes that people will add 1 1/4 to their travel time, if they find the perfect property.

After reviewing Winney’s list, I am relieved to discover I have not made a bad investment, while we do have to take a boat, actually a ferry to get to our cottage, the four hour commute passes quickly. I think people in the west are prepared to make a longer commute to get to water.

For prospective cottage buyers, Winney recommends working with a local agent. They often own cottages themselves and are very knowledgeable about the lake. They can take your emotive decision and make it a practical one.

Cheers,

Julie

This entry was posted on Tuesday, December 4th, 2007 at 10:26 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.