Purchasing a lake property or vacation home is an exciting milestone — whether it becomes your second residence, a family getaway, or a long‑term investment. While these homes may appear similar to city properties at first glance, there are several key differences every buyer should understand. Lake and recreational living offers tranquility, natural beauty, and a true escape, but it also comes with unique considerations that don’t apply to urban homes.
1. Water Supply, Quality & Cisterns
Many lake and recreational properties rely on private wells, lake‑draw systems, cisterns, or seasonal water lines rather than municipal water. These systems require more hands‑on management and regular monitoring.
Key things to understand include:
The type of water system in place (well, cistern, lake‑draw, etc.)
Water quality and potability
Flow rate and reliability
Whether water access is seasonal or year‑round
How often cisterns need to be filled and the cost of hauling water
Because these systems aren’t maintained like city water, regular water testing is essential to ensure safety and quality.
2. Septic Systems
Most lake properties use septic systems instead of municipal sewer services. It’s important to know:
What type of septic system the property has
The age and condition of the system
How often it needs to be pumped
Whether it has been properly maintained
If it meets current environmental and shoreline regulations
A well‑maintained septic system is crucial for comfort, safety, and long‑term property value — and repairs can be expensive if issues are missed.
3. Capital Gains Tax Considerations
If the lake property is a second home, not your primary residence, it may be subject to capital gains tax when you sell. This is an important financial factor many buyers overlook.
Things to keep in mind:
Only your principal residence is exempt from capital gains tax
Vacation homes, rental cabins, and secondary properties may be taxable
Keeping good records of improvements can help reduce taxable gains
It’s wise to speak with a tax professional for personalized guidance
Understanding this early helps you plan ahead and avoid surprises down the road.
4. Additional Maintenance & Seasonal Responsibilities
Lake and vacation homes often require more upkeep than city properties. This may include:
Managing shoreline erosion, docks, and boat lifts
Winterizing the home, plumbing, and water systems
Maintaining larger lots, trees, and private roads
Understanding local bylaws for fires, boating, and shoreline use
Preparing for seasonal access challenges (snow, ice, road conditions)
These responsibilities are part of the lake‑life experience, but they’re important to be aware of before purchasing.
Final Thoughts
Owning a lake property is an incredible lifestyle upgrade — offering relaxation, recreation, and a place to create lasting memories. With the right knowledge and guidance, you can make a confident, informed decision and enjoy everything lake living has to offer.
If you’d like expert help evaluating a lake or vacation property, I’m always here to guide you.
Conrad Kruger | eXp Realty | 306 941 1684
Serving Prince Albert, Saskatchewan and surrounding Lakes and Communities
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