Anyone who has spent a weekend at a cottage has probably entertained the idea of owning their own vacation home.

And although the cottage lifestyle is very enticing, there’s a few things you should consider before diving in to a lakeside property.

For instance, even with a good size down payment, getting financing and insurance for a cabin in a remote location could be more challenging than a home in the city.

And in the short term, a cottage isn’t likely to appreciate in value at the same rate as residential homes.

And if you’re thinking about a cottage as a legacy inheritance for your kids, keep in mind that a transfer in ownership will trigger capital gains tax and other fees, which could end up costing the next owners.

Ultimately, owning a cottage isn’t a bad idea, but better viewed as an long term and emotional investment rather than a short term monetary one.

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