Do re­search be­fore buy­ing

Calgary Herald New Condos - - Recreation & Investment Properties -

Some ad­vice for own­ers of re­cre­ation prop­er­ties:

Buy­ing prop­erty

Types of re­cre­ation prop­er­ties avail­able in Canada: Apart­ment-style suites; Town­homes; Chalets; Re­cre­ational ve­hi­cle (RV) lots;

Frac­tional-own­er­ship ho­tel/re­sort-style prop­er­ties; Is­lands; Acreages; Cab­ins; Waterfront prop­er­ties. Things to con­sider when choos­ing a re­cre­ation prop­erty:

What do you plan to use it for? Will it be strictly for re­cre­ation? Are you in­vest­ing for even­tual re­turn on in­vest­ment, or as a de­ferred re­tire­ment res­i­dence?

How of­ten do you plan to use the prop­erty? Is it lo­cated close enough that you can visit reg­u­larly (on week­ends) or is it far­ther away?

What do you want to do with the prop­erty when you aren’t oc­cu­py­ing it? Are you in­ter­ested in rental pools, frac­tional own­er­ship, or both?

Re­search the lo­ca­tions you wish to con­sider, and con­sult with real­tors and oth­ers who are fa­mil­iar with the area. Be aware of any zon­ing or leg­is­la­tion that might have an im­pact on your goals and bud­get.

Make a list of your most im­por­tant ques­tions and take it with you when vis­it­ing prop­er­ties.

From The In­sur­ance Bureau of Canada at www. ibc.ca:

How the va­ca­tion prop­erty is used and how of­ten it is oc­cu­pied will dic­tate which in­sur­ance pack­ages are ap­pro­pri­ate for you.

How much time do you spend there? Do you use it year-round? Do you rent it out at some point dur­ing the year? The an­swers to these ques­tions are im­por­tant when you are con­sid­er­ing what type of cov­er­age to buy.

Most in­sur­ance com­pa­nies will con­sider pro­vid­ing in­sur­ance for your va­ca­tion prop­erty only if you in­sure your pri­mary res­i­dence with them as well. You can have your va­ca­tion prop­erty listed on your home in­sur­ance as a sec­ondary or sea­sonal lo­ca­tion, or you can have in­sur­ance for the prop­erty as a sep­a­rate, stand-alone pol­icy.

Va­ca­tion prop­erty in­sur­ance is al­most al­ways pro­vided as a “named per­ils” pol­icy, in­stead of a com­pre­hen­sive pol­icy.

Named per­ils means you have in­sur­ance cov­er­age for spe­cific risks, such as fire, ex­plo­sion or smoke dam­age.

Cov­er­age for cer­tain risks, such as water dam­age or van­dal­ism, may be more dif­fi­cult or ex­pen­sive to ar­range, be­cause of the part­time oc­cu­pancy.

In­sur­ing

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