Cottage Lot Manitoba

[Fireftrdan]

Hello,

I was wondering if anyone had any thoughts on the price of cottage lots/cottage country in Manitoba. We are holding on to a lot, and it's assessed value has tripled in the last six years. I am not into speculation, and this is not the kind of investment that I really want to hold on to. However, when I've looked into similar situations and locations around CMA's around the country, lakefront land has done very well.



Also, is there a difference in payments methods in regards to capital gains? Are cash deals the same as financed? Any accounting help would be great.



Thanks

Dan

 

[Thomas Beyer]

Likely land price has dropped since 2009. Recreational properties are very fickle, as they are not a necessity. Also, it is hard to find exact comparables as the sun, the wind, the water level, the views, the degrees of shading, the rockyness, the access to utilities or roads are all different from lot to lot.




I would list it for sale at a price you feel comfortable. It may take a year or 3 to sell if priced too high.


buying raw land is like buying gold. No income and no societal value, but great for the ego and inflationary hedging.

 

[Fireftrdan]

Thank you Thomas, I appreciate the insight.

 

[2ndstory]

What lake is it on? Cottage prices in Manitoba peaked a couple years ago and have slumped since.



Nik

 

[Fireftrdan]

Hi Nik,

It is on Lake Winnipeg, however it is in a gated community, and the lakefront channels are protected from the crazy winds. I have been looking into the problem between the province, and Manitoba Hydro, as they are/have been battling on what level to keep the water at. I agree about the prices of cottage lots. And I agree with Thomas that raw land is a gamble. I guess I just want to make sure that I sell at an opportune time (educated guess/crystal ball?) ...

Thanks

Dan

 

[Thomas Beyer]

[quote user=Fireftrdan]And I agree with Thomas that raw land is a gamble. I didn't say that. I said "fickle".



Any recreational investment is more susceptible to the market than an income property, as it is not a necessity. However, many things, like cars, boats, vacations, hotels are not a necessity either and yet people buy them. There are always people that wish a 2nd (or 3rd or 4th) home in a nice location, on a lake, in the mountains, on the beach, so there will always be some demand.



As stated now is as good a time as 2015 or 2020. Will prices be higher in 2020 than today ? Probably, but not necessarily. There will always be people in Winnipeg (or from formerly Winnipeg or elsewhere) hat want to buy a lake front lot and build a house or cottage. It is then a function of price, and many many variables influence that.