Po­ten­tial land­lords have sev­eral op­tions

Calgary Herald - Calgary Herald New Condos - - Recreation & Investment Properties -

Some ad­vice for own­ers of recre­ation prop­er­ties, as well as for peo­ple con­sid­er­ing mak­ing a pur­chase:

Fi­nanc­ing

From RBC Royal Bank Canada at www. rbc.com:

There are three main fi­nanc­ing al­ter­na­tives for pur­chas­ing a va­ca­tion home:

A con­ven­tional mort­gage al­lows you to fi­nance up to 75 per cent of the pur­chase price of the home, thus re­quir­ing a down pay­ment of at least 25 per cent.

An in­sured mort­gage makes it pos­si­ble to fi­nance up to 95 per cent of the value of a sec­ond home.

If you hap­pen to al­ready own a cot­tage that has no debt on it, then you can also re­fi­nance that ex­ist­ing prop­erty for up to 90 per cent of its value and get an in­sured mort­gage to pur­chase an­other va­ca­tion home.

A home eq­uity line of credit makes use of the eq­uity built up in your pri­mary res­i­dence to let you bor­row up to 75 per cent of the value of the home less the debt still ow­ing on it.

You will need to have an up-to-date ap­praisal done to de­ter­mine the home’s cur­rent value.

Rent­ing

From High Coun­try Prop­er­ties Man­age­ment Ltd at www. high­coun­tryprop­er­ties. com:

There are three main ways to rent out your recre­ational prop­erty. If you buy a condo- minium, it’s likely there will be an on­site rental pro­gram.

Sim­ply sign up, make a list of when the prop­erty is avail­able for rent and you will re­ceive a cheque, ei­ther monthly or quar­terly, for rev­enue less ex­penses and a man­age­ment fee.

You can also ar­range for the ser­vices of an out­side prop­erty man­age­ment com­pany that spe­cial­izes in va­ca­tion rentals.

Again, you will need to come up with a sched­ule of when you want to use your va­ca­tion home.

Then, the man­age­ment com­pany will look af­ter mar­ket­ing your prop­erty, han­dling reser­va­tions and pay­ment, pro­vid­ing linens, clean­ing and main­te­nance, and send you a cheque for rental rev­enue, less ex­penses and a man­age­ment fee, usu­ally about 40 per cent.

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