Cottage vs trailer or RV site: the true cost compared

It can be a great way to get lake time for a fraction of the price. It is also a very different thing to own. Here is a fair side-by-side.

The quick comparison

Price of entry

Use recent completed sales of comparable properties on the same lake or nearby competing lakes. Match road access, waterfront quality, lot size, condition and permitted use. Provincial reports and asking prices cannot establish what one cottage is worth.

For a park-model trailer, the unit price is only one part of the comparison. Add the site fee, utilities, insurance, opening and closing charges, and any costs on resale or removal. Confirm what the site agreement includes and how fees can change.

Yearly costs

Park fees commonly cover the site, water, hydro hookup, groundskeeping and shared amenities, though some parks bill propane, hydro or internet separately. Fees in recent listings ranged from under $3,000 to over $5,600 a season. A cottage has no park fee, but you pay property tax, insurance, utilities and every repair yourself. See what a cottage costs each year.

Land is the big difference

With a cottage you own the land, and land is what tends to hold value over the long run. With a trailer you usually own only the unit. The park sets the rules, can raise fees, and decides whether a buyer can keep your unit on the site when you sell. Read the site agreement and park rules before you buy.

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Financing differences

Mortgage lenders lend against land and a permanent building. A trailer on a rented site is usually financed as an RV loan or personal loan, often with a shorter term than a mortgage. A cottage gets a real mortgage, with options for insured financing on qualifying properties and longer amortizations. Run the cottage side in the mortgage calculator.

If you already own a home, you could also use your equity toward either one. Our home equity calculator shows how much you might access under current limits.

Questions to ask a trailer park before you buy

1. What do the yearly fees include, and how much have they gone up in each of the last five years?
2. Is the site agreement yearly or longer, and can the park decline to renew it?
3. If I sell, can the buyer keep the unit on the site, and does the park take a commission or approve buyers?
4. Are there age limits on units, which can force an older trailer off the site?
5. What are the rules on guests, pets, decks, sheds and renovations?

Get the answers in writing. A cottage buyer gets most of this from a lawyer’s title search and the township. A trailer buyer depends on the park’s paperwork, so read it as carefully as you would an agreement of purchase and sale.

Who each one suits

A trailer site can be a great fit if you:

• Want summer weekends at the lake without a big mortgage.
• Like a social, campground feel with shared amenities.
• Do not need winter use or a place to pass down.

A cottage makes more sense if you:

• Want to own land and build long-term family use.
• Want privacy, your own shoreline and freedom to renovate.
• Can carry the full yearly cost comfortably, which you can test with the affordability calculator.

A middle path

Some families start with a trailer or by renting a cottage for a few summers, save, and buy later. Others go in with siblings or friends, which we cover in buying a cottage with family or friends. There is no wrong answer, only the one that fits your budget and how you want to spend summers.