The stay-at-home order imposed during the pandemic has led many to relocate outside the city. This led to an increase in demand for chalets, which was reflected in a sharp increase in prices. Even properties in poor condition were often offered at inflated prices.
Owning a second home isn't cheap. Here is a brief summary of the costs involved. You must weight these amounts according to the characteristics of the property, i.e. the type of construction, the location, the distance to travel, etc. This way you can assess whether it fits your budget.
What the purchase costs
- Assessment report: Document to determine the market value of the chalet. These costs are generally borne by the financial institution that wants to ensure the real value of the property.
- Inspection before purchase: If you miss viewing the chalet, it is like buying with your eyes closed, you are taking a big risk. The cost is between $600 and $900.
- Water analysis: If the holiday home is not connected to a municipal water distribution network but to an underground source, carry out a drinking water analysis. The cost is around $100.
- Septic installation: If the chalet is not connected to a wastewater recovery network, carry out a septic tank inspection. The cost of this process depends on the type of installation.
- Notary: Fees for a simple transaction range from $900 to $1,500.
- CMHC Insurance: If your down payment is less than 20% of the purchase price, you will need to purchase CMHC insurance, with a premium ranging from 0.6% to 4.5% of the mortgage amount.
- Household contents insurance: The amount of the premium depends on the coverage selected.
- Transfer tasks: Commonly known as the welcome tax, the tax varies depending on the municipality and the price paid.
To hold it
- Property tax and school tax: The amounts are determined according to the municipal valuation of the land and the building.
- Maintenance and repairs: Costs required to keep the holiday home in good condition.
- Services: Electricity, gas, internet and other services required.
- Condominium fees: If the chalet is part of a condominium complex, budget for the costs of maintaining the common areas.
- Snow removal costs: Some home insurance companies require the fire department to have access to the property at all times.
- Landscaping and lawn mowing costs.
to live in
- Heating and air conditioning: Depending on the seasons, energy sources are used to ensure the comfort of the rooms.
- Housekeeping: Costs to ensure the cleanliness of the premises, especially if the chalet is rented.
- Renovation: Expenses to carry out modernization or improvement work in terms of comfort and aesthetics.
- Traveling expenses: Costs for travel to and from your primary residence.
Other property-related costs
- Administrative and advertising fees: Costs that you will have to bear if you use the services of a company that takes care of the rental of the chalet.
- Legal fees: If you ever need to resolve a dispute or need legal advice regarding the property.
- Income tax, accounting service: If you rent the chalet, just like when selling it, you will need to prepare an income and expense statement that you can include in your tax return.
Diploma
You need to be very careful when purchasing a chalet, especially if it has not been built recently.
When purchasing, seriously consider the rental option. The tourism industry, heavily supported by Quebec government advertising campaigns, experiences strong growth in both summer and winter. “Quebec is expected to welcome almost 100 million tourists in 2026,” said Ms. Proulx, tourism minister for La Belle province. Obviously, the cabin in Canada remains an irresistible attraction in Europe, especially for our French cousins. Take advantage of it!
Advice
► Be careful of crowds when looking for a chalet.
► Add a pre-purchase inspection clause to the offer submitted to the seller.
► Keep all invoices and receipts for your expenses that you include with your tax return
► Before buying a chalet you like, talk to the neighbors to find out more about the location, surroundings, etc.