Thinking about buying a lake house with friends? Or a ski chalet with your sibling? Buying a cottage with friends or family is a great way to lessen the financial burden of owning alone. But shared ownership is a big deal! Read on and discover our dos and don’ts of sharing a cottage.
Pick your co-owners wisely
Dreaming about summer barbecues at the lake house or weekend ski trips after a serious snowfall? Shared ownership is a great way to make those dreams come true, especially from a financial perspective! But don’t jump into shared ownership lightly.
Owning a second home can be a lot of work and responsibility. So, choose your co-owners wisely. Finding the right people is more than just getting along. You need to be able to rely on each other. Most importantly, entering into shared ownership means splitting a mortgage and other maintenance costs. If for whatever reason, one of the co-owners cannot pay their share, their mortgage payment will still be your responsibility. It is not up to the bank to manage who will pay what part of the mortgage. Enter into shared ownership with someone you know well, who is financially stable and responsible.
It is easy to get carried away when shopping for a cottage. However, it is important to be realistic. Especially from a financial perspective. Sit down with your future co-owners and make a list of what you want. What type of property? A ski chalet? A lake house? Somewhere close to the city? How much can each partner realistically afford?
Make a contract to determine the terms of your shared ownership
A notary can write up a cottage-sharing agreement (CSA) so you can have everything in writing. Don’t neglect this step as it may just prevent World War III from erupting between owners. This type of agreement will determine exit strategies if an owner wants to sell and restrictions on transferring the property to others. It will also set terms on how to divide time, chores, expenses, and responsibilities. Who mows the lawn? Cleans the bathrooms? How is the electricity bill paid?
Furthermore, it is important to lay out how big decisions will be made. For example, major renovations, such as repairing the roof, might require a unanimous decision. Smaller ones may only require a majority vote.
Set down some ground rules to make shared ownership a pleasant experience for all
Once you have all agreed upon and signed the CSA, it is a good idea to set some basic ground rules. Do you need to put fresh sheets on the bed before you leave? Take out the trash and recycling? Restock the pantry? Do you share groceries? Figuring out all the little details ahead of time ensures everyone knows what is expected of them.
Shared ownership can be a great way to enjoy cottage life. Contact Kanata Tremblant today to find out more about their cottages and land for sale.