Cottage Investment Properties


We recently bought a cottage lot and are not sure what to do with it.

If we build a new home on the lot we need to do septic, well etc.

And a new home would bring us up to $450,000 investment in the property.

In this economy we are worried it wouldn't sell. It is on a lake. We actually have a double lot and are wondering if we should build as everyone on our street is converting their cottages to year around homes (baby boomers) or split the lot and put another cottage on the other one and sell it for 180,000 profit and we could sell the other one as well.

We are worried about spliting the lot as that is why most people like the property becuase it has a double lot.

Most cottages go for around $200,000 on the lake which are a lot smaller properties then ours (1/2 size) what would you suggest?

Build a dream home or split the lots and build another cottage?

Follow my decision and renos etc. at:

Comments for Cottage Investment Properties

Click here to add your own comments

Jan 20, 2010
RE: Cottage & The Aspiring Millionaire
by: Tom Karadza

Hello Aspiring Millionaire!

Thanks for the question.

And I would have to come back to you with a question. What was your goal when you bought the property?

Long term appreciation?
Immediate cash flow?
Quickly force up your equity position and sell?
Do you need/want to sell quickly and get out of the situation?

It sound like you want to sell and are looking for the right strategy.

You'll need a decent amount of cash to get through any re-zoning, new construction and carrying costs of a build. You'll also have to deal with contractors and turn yourself into a mini general contractor to oversee the project. None of that is bad, just be aware of it.

If you're looking to sell quickly doing a build may not be the best option.

I would talk to an experienced Realtor in the area and ask him/her for comparables of your property "as is", "split into two", and with a "dream home" on it. Once you have that information I would imagine it will help guide your decision.

I realize I'm not helping very much here! Reply with more detail around your goals for this and I'll add more!


Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Submit A Question.


  Some Cool Free Stuff...

  Step 1:

Grab a free digital copy of our real estate investing book, Income  For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

You'll also receive our weekly [Your Life. Your Terms.] email newsletter with the latest investing updates and videos.

  Step 2:

Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

Your Life. Your Terms.

  Step 3:

Free LIVE Investing Class: Do you live in the Greater Toronto or Golden Horseshoe Area? Come out to our next introductory "Investing in Nice Homes in Nice Areas" Real Estate Class.

Get all the details by clicking here.

It's 90-minutes and you'll learn a ton - promise!Thousands of investors have now joined us for this class and the feedback has always been amazing.

Click here to get book

This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

  Click here to subscribe