Sell my cottage now or keep it as investment and sell later on?

Question

I own a lake-front cottage near Grand Bend, Ontario Canada that was recently appraised at $ 575,000.

My question quite simply is should I sell it now because from what I understand real estate, especially luxury real estate like cottages are at their highest point right now for resale and they are expected to flatten out or even go down in prices over the next few years due to the uncertain economy. Or do I keep it and ride the calm wave of the upcoming downturn in the economy and hope that after the downturn cottage prices go up even higher in the future. The cottage is only costing me maintenance at this time and property taxes and utilities, other than that it is completely paid for with no mortgages or loans against it.

Do I keep it and earn basically no return on the thing over the next 3 years anyhow until the economy turns around and prices head back up or sell it now and put the over $ 500k into a mutual fund or a interest bearing GIC account and make some return on the thing

Answer 1

I think property prices are heading down, perhaps for years, but lake front cottages may be an exception.  I would not expect it to appreciate in the short term. If you can get $575K for it, sell it.  You can invest that the Central Fund of Canada, it will appreciate nicely.

Answer 2

are they making more land around the lake? if not, i would keep it prime real estate may depreciate but not as much when it rises it rises faster than the rest

Answer 3

At the same time this real estate agent is telling you that prices are going to flat, he's telling prospective buyers that prices have already bottomed.

What's the reason you're not renting it out?  A vacant property creates increased risk of fire and vandalism, and is throwing away money.

Holding this property should be generating an income stream for you as well as providing you with a hedge against inflation.  

There are a lot of forces in place that make inflation likely; they may also result in some recession, which could temporarily depress real estate, but in the end, real estate will maintain value in a way that your currency can't... and if you were to sell this property, in anticipation of a downturn, I think it's really unlikely you would ever buy back in.

So you should hold on to this property, but you should be renting it out.

Answer 4

It all depends upon your priorities. form your question it is earning money is your priority. So sell it But before selling find out another investment opportunity to put the same money then sell it.

Answer 5

stop trying to front *****

Answer 6

http://www.kassiescourage.com/images/Kas...

Answer 7

Canad homes are much better value than USA.

Canad does not have USA issue in real estate.

if you sell it and invest this money in safe health care  stocks like JNJ,and PFE as example .

but please seek a professional  advice.

best wishes in your investment.

Answer 8

you need to find out if the price of your cottage will decline or not in the future. If this apprised price is the pak price in the lifetime of your cottage then you should sell now!!

but if the prices will continue to grow with minimum risks, then you should keep it!

GOOD LUCK

Answer 9

Just because it's appraised at that doesn't mean you're gonna get it. I think i'd keep it until the market is better. If the market goes up it will appreciate faster than a mutual fund

Answer 10

if you can sell a cottage for 575k in ont. ca. you do it

Answer 11

If its as you say paid for just hang on  to it if you do not need the money now- Just  because the property markets go up & down , it does mean you have to jump each time- you got it for your enjoyment or say for rental - Just  ride , and despite what the property prices are fluctuating it will find its level-

The above suggestion depends on your age too- If you are over 60, then sell it -Under that and in good health hang on to it

Answer 12

Keep It