In this enlightening episode of ‘ThinkSmart with TMFG’, hosts Rob McClelland and Mike Connon of Assante Capital Management lead an in-depth discussion about the financial implications of owning a second personal use property, particularly cottages. They share their personal experiences, benefits, challenges, financial obligations, and not-so-obvious realities connected with owning a vacation home during retirement.
Join in as Mike and Rob shed light on the changing dynamic of property usage as one’s life stage evolves, the associated annual costs, the investment considerations and more. They address the illusion of ‘ease’ that can captivate potential owners, stressing on the financial commitments that are often underestimated.
Dive into detailed discussions about hidden expenses related to cottage ownership, from harsh weather maintenance to managing wildlife. The hosts also bring up vital topics like tax considerations, borrowing costs, and non-deductible expenses, underlining the importance of a balanced and informed decision.
Touching on added complexities of foreign property ownership, the conversation addresses ‘toy’ ownership costs, fluctuating maintenance costs, local tax laws, inheritance tax, and property transfer complexities. Despite potential pitfalls and challenges, for many the dream of owning a cottage remains unbeaten given the memories and precious family time it provides.
Concluding the episode, Mike and Rob underscore the importance of detailed planning and readiness for anyone considering owning a second property or cottage. This episode aims to provide a comprehensive and realistic picture of the financial landscape associated with owning a vacation property.