Locked: Is investing into a Cottage in Collingwood as an investment feasibile?

How many weeks a year is the cottage actually rented?

Even if you assume 50%, 26 weeks out of 52 weeks ... you're still getting roughly 3.2k/month.

You would be luckily to have it rented from May to Septmeber for 2-3 weeks a month and during December/February, depending on how close you are to blue mountain you might get a couple of weekends. If you could collect 6k a month then the prices for cottages would be a lot more. The market is telling you that you probably won't generate more than 20-25k in rental income a year.

depends.. I have a cottage and my buddy bought the cottage next door.

I rent mine for 5 weeks a year .. he rents for 10 weeks and covers all his exspense+mortgage BUT doesnt get to use it all of july and august. I get some help with my expenses but use sparingly during the 5 weeks in the summer that its not booked.

Priority one is YOU HAVE TO LOVE IT. if not pick a different investment vehicle.

Also note: we have typical cottage on nice lakes 2 hours from toronto... Collingwood is very differnt and does nothing for me. no beach no dock ---Most places are chalets not cottages.. i dont ski or care about Blue moutain village.

Cottaging is a lifestyle... not for everyone!

so many rentals currently available in Collingwood....risky

FIE

$400,00 / $7 unit * $0.04 a month = $2200 a month dividend win.

B0SS wrote: ↑Hey everyone,


We are looking for a revenue generating asset that can helpfully generate some positive cash flow for us.

I noticed you can get a decent 3 bed Cottage in Collingwood for about 400.

Rent around that area is about 1500-1600


Has anyone had experience in being a landlord in collingwood before or owning a cottage? I don't know why (besides a pain in the butt to manage) why people don't invest in these cottages.

Am i missing something.


400k Property, generating 1,500 a week, 6k a month !

What am i missing here, I mean it looks a lot better than buying a condo for 4000 and collecting only 2.5k a month.

This is a terrible deal on so many different levels.

This is the same scheme that Donald Trump and those other characters shilling "condo hotels" use. Take the optimal rent, multiply it by a totally unrealistic occupancy rate and wow, look at the return! It's a pure sales pitch. Ask the people who are stuck with empty "condo hotels" how great of an investment it is.

You may get $1500/week during peak summer rental time in July and August, but who's going to be willing to pay even half that amount in February or November? Obviously you're paying utilities on a short term weekly rental, as well as property tax and insurance. Plus the mortgage. That adds up in a hurry when the place is vacant. You'll also need to have it fully furnished. And just hope the couches don't get stained too badly.

Short term rentals are a huge PITA. That's the main reason I got out of student rentals. It's bad enough trying to fill a place every August - - I can't imagine the hassle of trying to fill one every week.

Don't kid yourself - - a week long rental in Collingwood is primarily for the party crowd. At the very least, there's going to be clean ups of bodily fluid on a fairly regular basis. Are you taking care of that or are you hiring it out to a cleaning service? Speaking of which, if you're going to turn it over every week that leaves you with a very small window for going in and cleaning/tidying. Your tenants arrive Saturday afternoon at 3pm and depart the following Saturday at 11am. You've got 4hrs every weekend to scrub the bathrooms, wash the sheets, clean the kitchen and vacuum the living area.

Do yourself a favour and forget about this idea. There's way better opportunities for an investment property in the GTA that will be MORE profitable and require LESS work.

On a $400k property, you'd need to collect at least $40k/year in rents to make it a decent investment (10% gross return on asset, maybe 6-7% net if you're lucky). Anything less than that, you may as well just invest in REIT's for a better returning, more diversified asset.

Wonder if OP did it and how it turned out?

Say if you get 6 months full rent in a year that's $9,600. Price-to-Rent ratio would be 41.6. That's waaaaay to high for this investment. Not a good deal.

A friend of mine has a house that he rents out in blue mountain. $45,000 for 4 months seasonally. He then rents it for the summer for $30,000. First couple of years was a pain, but now he has regulars, so it is much easier.

Ahh to think, 6 years ago you could have gotten a cottage in Collingwood for $400K....my how things have changed!