Buying a Cottage in Muskoka

Another question I get asked all the time as a Realtor:

“Where is the best place to buy a cottage in Muskoka?”

The many factors of Muskoka cottage buying include:

1. Location – Lake? Large? Small? River? Budget?
2. Cottage size – Family? Friends? Again budget!3)
3. Lifestyle – Recreation? Relaxing & Solitude? Access?4)
4. Future Use – Investment? Rental? Retirement? Re-Sale?

Lets expand on these points and ask yourself the criteria that is important to you:

1. Are you interested in boating? If so, the size of the lake may be important to you. If you like boating and touring around a large lake or have kids that are into wakeboarding and waterskiing then a larger lake may be what you are looking for in a cottage property. If you are a non-motorized enthusiast, then a smaller lake or river may be more suitable for you ie: kayaking, canoeing, paddle boarding (SUP) swimming, sun bather or just sitting on the dock. Is drive time important to you? If you would like to be less than 2 hours from the GTA to your cottage destination then the south part of Muskoka may be more appealing to you. Note that you do pay a premium for this location too! If a drive time of 2.5 to 3 hours to your cottage then you have a much broader selection of properties to choose from.

2. Cottage size may be important to you. Do you have a large family or love to entertain? A cottage property with a bunkie or guest cottage may work for you for the overflow of guests. If you own a cottage there is always someone waiting for an invite to your piece of paradise! A larger lot also may important to you if want extra privacy. A typical 100ft lot water frontage may not give you the elbow room you may desire. A larger water frontage may be more appealing but that again depends on your budget.

3. Location may be a big factor in the area you choose. For example waterfront in Huntsville will be easy for you to reap the benefits of year round activities and proximity to amenities like restaurants, shopping, golf and local events. Lake of Bays gains you the best of both worlds with all the above plus crown land, multi use trails and Algonquin Park within minutes of the area. Port Carling area is bustling center in the summer but is very quiet in the winter. Are you craving a more peaceful getaway? There are 1600 lakes in the District of Muskoka and smaller, quite lakes included where you only hear nature! Do you have smaller kids or have accessibility issues? A level lot with easy entry to the lake may be more acceptable than a challenging sloped lot. Other factors that most buyers forget is sun orientation or exposure;  ie: Do you like morning sun or late day sun or sunsets? These factors can be key in finding a waterfront property that best suits your lifestyle.

4. Other factors of purchasing cottage properties are for a more lucrative approach for investment or seasonal rental pursuits. Or perhaps you envision yourself enjoying the cottage as a retreat but then retiring to your paradise when you retire.

These questions may help you put extra thought into the process of buying a cottage in Muskoka. Sometimes you just have to explore the area and that one property may just speak to you and you fall in love with it! If you need help finding the perfect cottage property let me help you search it out. I was born and raised in Muskoka and I can share my personal insights and thoughts of a great investment for a property that will check off all the boxes. Contact a Muskoka cottage expert – JANINE SCOTT, Real Estate Broker  JanineScottMuskoka@gmail.com  Lakes, Town & Country Homes – Muskoka

Re/Max ALL-Stars Realty Inc, Brokerage

 

 

 

 

How much is my house worth? 101

One of the many benefits of owning a home is having the ability to sell it one day – hopefully for a healthy profit, which can then be leveraged to purchase a larger home, an investment or recreational property, or help finance your retirement. Once you decide that you’re ready to take the leap and list your home for sale, the next question you need to ask is, “How much is my house worth?” This is a loaded question indeed. It opens the floodgates to a slew of other factors that will each impact your decision on asking price to varying degrees.

The Price Is Right

We can’t stress the importance of setting the right asking price. An overpriced home runs the risk of sitting (and stagnating!) on the market for a prolonged period of time. This can seriously hurt your bottom line, especially if you’ve already purchased another home and you’re paying two mortgages simultaneously. Beyond that, overpricing your home could make competing listings look even more attractive. And oftentimes, fixing the issue isn’t as simple as just re-listing the home at a lower price. Buyers who are shopping the market will have already seen your listing, and they will either discount it as old news, or they may wonder what’s wrong with the property, in light of the price reduction. An overpriced home is not an ideal situation to find yourself in, in any selling scenario. On the flip-side, underpricing your home means leaving money on the table. Setting the right price from the get-go will ensure your listing attracts serious buyers, and some feasible offers too.

So, how much is my house worth? Let’s find out.

MARKET CONDITIONS
Is it a buyer’s market or a seller’s market? The real estate market is impacted by everything from the local and larger economic picture, to the weather. The type of market speaks to demand for homes, which will affect how quickly your home sells and will help answer the question, “How much is my house worth?” A buyer’s real estate market is characterized by more homes for sale than people to buy them. An influx of listings (or fewer homebuyers) means buyers face less competition in the purchasing process, and can often take their time and see more homes before making an offer. Buyers also have greater negotiating power when it comes to their offer and conditions of the sale.

THE COMPARABLES
If you’re not sure what your home is worth, have your real estate agent pull comparable sales to help answer the million-dollar question (depending on the market, of course!) “How much is my house worth?” This will give you an idea of what homes in the same neighbourhood have sold for in recent weeks. This is a realistic reflection of what buyers have actually paid for similar homes in the same area. It’s also prudent to keep an eye on your competition. Pay attention to homes for sale in your neighbourhood, their condition and features, and the asking price – but take it with a grain of salt. Depending on the seller’s strategy, they could have listed low in an attempt to attract more potential buyers.

THE LOCATION
A home’s location has a huge impact on its value, and rightfully so. It’s a particularly important consideration for buyers, as location is one thing you definitely can’t change about the home. Location will define the liveability of the neighbourhood, the price buyers need to pay to get into the area, and the resale value when it’s time to list it. Translation: hot neighbourhoods are always a hot commodity, oftentimes trumping market conditions.

THE HOME
A home’s location typically trumps style when it comes to value, but that’s not to say condition, features and upgrades don’t matter when you’re determining what your home is worth. A fixer-upper and a move-in ready home will vary in terms of price, even with identical floor plans. Items such as a new roof, a finished basement, renovated kitchen and baths can make a difference to the bottom line, and the return on investment could be well worth the money and effort. This is precisely why many home sellers choose to renovate or update their home before listing it for sale. Evaluate the cost of the renovation and consider whether you’ll get that money back in the face of real estate market conditions.

There’s a lot to think about before you put up that For Sale sign. What’s happening in the real estate market? Is there buyer demand? Who’s your competition? What is my house worth? And ultimately, what can I do to make the sale? Start by working with an experienced real estate agent who has a thorough knowledge of your specific area, the market conditions and your target buyer. Discuss all of the above with your real estate professional, Janine Scott. At the risk of sounding like a public service announcement, education really is key in the home buying and selling process, allowing you to make confident decisions concerning your property – and your financial future. Do you want a current value of your property? Contact me for a confidential, no obligation market analysis of your property today!

 

A method of refinancing your mortgage: HELOC

A method of refinancing your mortgage: HELOC = A home equity line of credit, or HELOC, is a revolving line of credit secured by your home at a much lower interest rate than a traditional line of credit. In Canada, your HELOC cannot exceed 65% of your home’s value.

What You Need to Know About HELOCs in Canada

1. You can access up to 65% of your home’s value – In Canada, you can access up to 65% of the value of your home through a home equity line of credit. However, it’s also important to remember that your outstanding mortgage loan balance + your HELOC cannot equal more than 80% of the value of your home. To determine how much equity is at your disposal, start by taking your home’s current market value and multiplying it by 80%. Next, subtract the balance of your mortgage. The remaining figure is how much you can access through a HELOC – so long as the amount is not worth more than 65% of the value of your home. To be sure, simply divide the HELOC amount by your home’s market value.
2. Your HELOC funds will be available through a revolving line of credit – With a home equity line of credit, the entire credit available is not advanced upfront. Instead, you can use as much or as little of the HELOC as you choose, and you only pay interest on the amount you withdraw. Interest is calculated daily at a variable rate attached to Prime. HELOC rates are traditionally higher than a variable mortgage rate but, unlike a variable mortgage rate, its relationship to Prime does not always stay the same. For example, a variable mortgage rate is often Prime +/- a number, like Prime – 0.35%. HELOC rates are set at Prime + a number, and your lender can technically change that number anytime.
3. You make interest-only payments – If you are using any portion of your home equity line of credit, you will need to make a monthly payment for doing so. The same way a traditional line of credit works, you will only need to pay the interest on your outstanding balance and that amount is automatically taken out of your bank account on the same day each month. To pay off the balance in full, you will need to be more disciplined and make extra payments at your own discretion. And remember: unlike a refinance, you do not need to break your existing mortgage when considering a HELOC. Therefore, you won’t need to pay a mortgage penalty – just a monthly interest-only payment.
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Staging your home to sell quickly! No need to break the bank!

There are plenty of quick fixes for your home’s trouble spots.

Bathroom: White towels and a white waffle-weave shower curtain can do wonders to a dated bath. De-clutter all counters.

Kitchen: If you have dated oak kitchen cabinets, paint them white, change hardware and add quartz or stone counters to help update.

Remove: Get rid of dated wallpaper and paint a very neutral colour. Try a very warm white!

Windows: Take down dusty, dated window treatments. Hang white or light curtains, floor to ceiling. Hanging curtains floor to ceiling creates an elongated line that makes windows — and thus rooms — appear taller. Matchstick blinds hung just above the windows complete the effect.

Update: Inexpensive updates can include changing out light fixtures, throw pillows and bed linens. I like a white quilt or duvet for photos with pops of colour with pillows and throws.

Fake a view: hang a high-mounted a giant mirror in the dining or living room to create the illusion of a more loft-like environment. The mirror becomes a virtual window.

Splashes of Colour: Add colourful accents with vases, flowers, floor mats and art.

Purge & Clean: If you don’t immediately need it then throw it away, donate, sell or pack it up.  Your home needs to have the minimum amount of furnishings and belongings as possible, but still look fresh and liveable.  Since you are moving in the near future, how about starting to pack up boxes and place them in the garage or storage unit?

Be positive: This is a ‘trick’ because with all the doom and gloom news in the media about the housing market there is still a bright side. The bright side is the housing market is showing good improvement and you are going to shine above the competition with your staging tricks. Your confidence will show in your home and an offer will come sooner than you expect.

When you are finished contact me to give you a current value on your home or cottage.

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