Cost Comparison of Carefree Cottaging


When deciding to invest your money in cottage property property it is important to consider many things. The following chart attempts to put into perspective the relative costs of Carefree Cottaging option, to the cost of purchase of a cottage or fractional ownership of 1/10th of a property. Aside from the actual capital investment we believe Carefree Cottaging has a number of advantages that are important for you to consider.

You only make a decision one year at a time as to how much time you will spend at the cottage. This allows maximum flexibility for changes in your family’s needs. You can use the capital you would have invested for other needs of your family or to invest for future needs. Take a careful look and you’ll see what we mean! Come on up and try it out for a weekend and we’ll credit the money you spend to your future Carefree Cottaging purchase.

Examples of Costs

Option Costs Considerations

Cottage Ownership-

based on $500,000 purchase price of a basic 4 season cottage in Haliburton Ontario.

icon Annual cost of capital (interest only @7%):$35,000.
icon Maintenance & Repairs: $2,000.
icon Insurance: $750.
icon Taxes: $3,500.
icon eat / light / water: $2,000.
icon Up-keep -- plowing, lawnmowing, firewood, security: $2,000.
   
Total Annual Cost: $45,250


icon Capital is tied up and may take considerable time to free up if a sale is required
icon Do not have easy access to sports and health facilities
icon Need to worry about security and frozen pipes when not there
icon Have ongoing worries with respect to repairs and maintenance
icon Often need to work while at the cottage in order to keep it in shape or upgrade to your desired state

Fractional Ownership --
based on the typical 5 week per year fractional arrangement -- one week in each season and one floater week
icon Annual cost of capital (interest only @7%) $5,500.
icon Common annual fees: $2100.
   
   
Total Annual Cost: $7,530.

icon Capital is tied up and may take considerable time to free up if a sale is required
icon Do not have easy access to sports and health facilities
icon You are tied in to dates determined by the fractional ownership corporation (often by lottery)
icon if you cannot take 5 weeks vacation you forfeit days you cannot take
   
Carefree Cottaging
icon Total annual cost depends upon package purchased -- could be as low as $1320 for 2 off season weeks for 2 people
icon OR, $4304 for the same package of weeks as fractional ownership allows -- one per season and a floater
   
   
icon 14 days or more of worry free fun with one year's commitment at a time!
   
   
   
   
Savings
icon vs ownership $38,000 or more!
icon vs fractional -- $3,200 or more if you select all off-season weeks!
   
   
icon In addition to freeing up your capital -- the savings in annual expenses would easily pay for a vacation down south!