2025 Ontario Cottage Investment: Kawarthas vs. Haliburton vs Peterborough
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Kawarthas & Peterborough: The "Hub & Spoke" Investment
The Investment Case
- The Peterborough Factor: Having a major urban center like Peterborough nearby is a massive de-risking factor. It provides a year-round tenant pool (including professionals and retirees) and essential services (PRHC hospital, Trent University) that drive long-term property value.
- The Trent-Severn Advantage: Properties on the "big lakes" (Balsam, Sturgeon, Pigeon) command a premium because of their connection to the Trent-Severn Waterway. In 2025, boat-access-friendly properties continue to see the highest resale liquidity.
- Commutability: At just 1.5 to 2 hours from the GTA, this region is the primary choice for the "hybrid worker." Investors here benefit from high demand for long-term rentals and secondary residences for those still tied to city offices.
2025 Market Snapshot
Haliburton Highlands: The "Nature & Yield" Investment
The Investment Case
- Superior Rental Yields: Haliburton consistently outperforms the Kawarthas in short-term rental (STR) rates. For investors looking at Airbnb or VRBO, lakes like Kennisis, Redstone, and Drag are "blue-chip" destinations that command significant weekly rates in the summer.
- Four-Season Revenue: Haliburton has mastered the "winterized" investment. With Sir Sam’s Ski / Ride and an expansive snowmobile trail network, well-insulated cottages here can generate income 10 months of the year.
- Better Value Per Acre: Generally, your dollar goes further in Haliburton. You can often secure a larger lot with more privacy for the same price as a smaller, more "urbanized" lot in the Kawarthas.
2025 Market Snapshot
Which is Right for You?
- Invest in Kawarthas/Peterborough if: You want a "safe bet" with high resale liquidity, proximity to a major city, and a property that is easy to manage due to a wealth of local contractors and year-round accessibility.
- Invest in Haliburton if: You are chasing ROI through rentals, prefer a more "authentic" northern experience, and are willing to drive an extra hour to get a more dramatic landscape and higher summer rental checks.
Choosing between these two powerhouses isn't about finding the "better" region—it's about matching your investment horizon to the local landscape. Whether you are looking for the urban-adjacent stability of the Kawarthas or the high-yield, rugged seclusion of Haliburton, 2025 is proving to be a year of strategic opportunity.
2025 Head-to-Head Comparison
Feature | Kawarthas / Peterborough | Haliburton Highlands |
Drive Time (from GTA) | 1.5 – 2 Hours | 2.5 – 3 Hours |
Topography | Flat, lush, farmland/limestone | Rugged, hilly, granite/pines |
Water Quality | Mixed (some shallow/weedy) | High (deep, clear, spring-fed) |
Primary Appeal | Boating & Town Amenities | Privacy & Wilderness Sports |
Avg. Waterfront Entry | $750k - $900k | $650k - $850k |
The 2025 "Regulatory Check"
- Kawartha Lakes: Now requires a formal STR license. Fees and inspections are mandatory, and there is a strict "Renter's Code of Conduct" that owners must enforce.
- Haliburton County: Most townships have implemented a Municipal Accommodation Tax (MAT) of 4% and require licensing. Some lakes have specific restrictions on "high-density" occupancy to protect septic systems.
Investor Tip: In 2025, look for properties with "grandfathered" footprints or those that have already passed their municipal STR inspections. These are selling at a premium because they remove the regulatory guesswork.
⚖️ 2025 STR Regulatory Deep Dive
The "Wild West" days of cottage country rentals are officially over. Both regions have moved to sophisticated, enforcement-heavy models that prioritize local resident peace and environmental health (specifically septic systems).
1. Kawartha Lakes: The "Strict Compliance" Model
In the City of Kawartha Lakes (encompassing Fenelon Falls, Bobcaygeon, etc.), the program is now in a high-enforcement phase.
Licensing is Mandatory: Since 2024, every STR (28 days or less) must have a license. Unlicensed units in 2025 face heavy daily fines.
The 30-60 Minute Rule: As an owner, you (or a designated person) must be able to respond to the property within 30 to 60 minutes to address issues. This essentially mandates a local property manager for GTA-based investors.
Occupancy & Septics: Occupancy is strictly capped based on the size of your septic system. In 2025, demerit points are issued for overcrowding; 7 points can lead to a license revocation.
Public Mapping: Your cottage is likely on a public map. This allows neighbors to easily report noise or parking violations through a 24/7 hotline.
2. Haliburton County: The "Yield & Tax" Model
Haliburton’s townships (Dysart et al, Minden Hills, Highlands East, Algonquin Highlands) have unified under a common framework but with varying tax rates.
The MAT Tax: As of 2025, you must collect a Municipal Accommodation Tax (MAT). In most areas, it is 4%, but in Dysart et al, it remains 2%. This must be charged on the room rate and remitted quarterly.
Septic is King: In Dysart et al, occupancy is strictly limited to two people per bedroom. To get your license, you must produce your original septic installation report or a recent inspection. No permit = no license.
The "Secondary Unit" Shift: A major 2025 update in Dysart et al now allows Additional Dwelling Units (ADUs) to be used as STRs, opening up "dual-income" potential on properties with legal bunkies or guest suites.
Signage Requirements: Many townships (like Minden Hills) now require a permanent, visible sign at the end of your driveway with your license number and a 24/7 contact number.
Comparison of Key 2025 Bylaws
| Requirement | Kawartha Lakes | Haliburton Highlands |
| Max Stay | 28 Days or less | 28 Days or less |
| Response Time | Mandatory 30-60 Mins | Varies (Responsible Person required) |
| Tax (MAT) | In development/consultation | 2% to 4% (Fully active) |
| License Fee | Approx. $1,200 (2-year) | Approx. $500 - $1,000 (Annual) |
| Bunkies | Strictly for sleeping; no kitchens | Legal bunkies allowed as "bedrooms" |
💡 Pro Investor Tip for 2025
If you are buying a property for an investment, make the offer conditional on the seller providing or the buyer satisfying themselves that a valid STR license and a septic inspection report can be obtained. This saves you the $1,000+ licensing fee and, more importantly, the risk of finding out the septic system only supports a 2-person occupancy on a 4-bedroom house.
Adding Peterborough County to the mix introduces a "middle ground" strategy. While the City of Peterborough provides the urban anchor, the surrounding townships (like Selwyn, Trent Lakes, and North Kawartha) offer a unique regulatory environment that sits right between the strictness of the Kawartha Lakes and the yield-heavy focus of Haliburton.
Here is how Peterborough County fits into your 2025 investment comparison:
📍 Peterborough County: The "Local Choice" Investment
Peterborough County is effectively a patchwork of different rules. Unlike the City of Kawartha Lakes, which has one set of rules for the whole region, Peterborough County leaves it up to each individual township.
1. The Regulatory Landscape (2025 Update)
2. The Investment Case
Trent Lakes (Buckhorn, Crystal Lake): As of March 4, 2025, Trent Lakes has implemented a Mandatory Registration Program.1 You must now pay an annual fee ($350 initial / $250 renewal), submit floor plans, and prove your septic system can handle your guest count.2
Selwyn (Lakefield, Ennismore, Stoney Lake): Interestingly, Selwyn does not license STRs as of late 2025. They rely on "nuisance bylaws" (noise, parking, garbage) rather than a formal licensing fee. This makes it a lower-barrier entry for new investors, though they do charge heavy "inspection fees" if they have to send a bylaw officer to your property.
North Kawartha & Douro-Dummer: These areas are currently the "frontier." While they have been debating licenses for years, they primarily use updated noise and parking bylaws to manage rentals. This provides more freedom but less "regulatory certainty" for long-term planning.
Trent Lakes (Buckhorn, Crystal Lake): As of March 4, 2025, Trent Lakes has implemented a Mandatory Registration Program.
Selwyn (Lakefield, Ennismore, Stoney Lake): Interestingly, Selwyn does not license STRs as of late 2025. They rely on "nuisance bylaws" (noise, parking, garbage) rather than a formal licensing fee. This makes it a lower-barrier entry for new investors, though they do charge heavy "inspection fees" if they have to send a bylaw officer to your property.
North Kawartha & Douro-Dummer: These areas are currently the "frontier." While they have been debating licenses for years, they primarily use updated noise and parking bylaws to manage rentals. This provides more freedom but less "regulatory certainty" for long-term planning.
The "Stoney Lake" Prestige: Peterborough County contains some of the most prestigious "old money" lakes in Ontario. While entry prices are high ($1.2M+), the capital appreciation on lakes like Stoney or Clear is historically among the most stable in the province.
Inventory Variety: You can find everything from $600,000 "fixer-upper" cabins in the northern woods of Apsley to $3M estates in Lakefield. This allows for a more tiered investment approach than Haliburton.
The "Stoney Lake" Prestige: Peterborough County contains some of the most prestigious "old money" lakes in Ontario. While entry prices are high ($1.2M+), the capital appreciation on lakes like Stoney or Clear is historically among the most stable in the province.
Inventory Variety: You can find everything from $600,000 "fixer-upper" cabins in the northern woods of Apsley to $3M estates in Lakefield. This allows for a more tiered investment approach than Haliburton.
📊 Updated 2025 Head-to-Head-to-Head
| Feature | Kawartha Lakes | Peterborough County | Haliburton Highlands |
| Primary Vibe | Accessible / Infrastructure | Prestige / Community Hubs | Rugged / High Yield |
| STR Licensing | Very Strict ($1,200 fee) | Patchwork (Some yes, some no) | Moderate (MAT Tax & License) |
| Septic Oversight | High (Mandatory inspections) | Moderate (Required for registration) | High (Strict occupancy limits) |
| Best For... | Hands-off GTA Investors | "Hybrid" Use (Rent + Personal) | Pure Cash-Flow Seekers |
Which Peterborough Township is Right for You?
Invest in Trent Lakes if: You want the Kawartha lifestyle but with a slightly more affordable licensing fee ($350 vs $1,200) and a more "northern" feel.4
Invest in Selwyn if: You want to avoid the headache of formal licensing applications (for now) and want to be within 15 minutes of a major grocery store and hospital.
Invest in North Kawartha if: You want the Haliburton "Shield" look (granite and pines) but want to stay about 30 minutes closer to the GTA.
Invest in Trent Lakes if: You want the Kawartha lifestyle but with a slightly more affordable licensing fee ($350 vs $1,200) and a more "northern" feel.
Invest in Selwyn if: You want to avoid the headache of formal licensing applications (for now) and want to be within 15 minutes of a major grocery store and hospital.
Invest in North Kawartha if: You want the Haliburton "Shield" look (granite and pines) but want to stay about 30 minutes closer to the GTA.
💡 2025 "Golden Rule" for Peterborough County
Because the rules vary by township, your zoning is your destiny. In 2025, many townships are looking at "Shoreline Residential" (SR) zoning specifically. Ensure your realtor checks the Specific Township Bylaws, not just the County-wide ones, as a property in Selwyn will have completely different rental rights than one five minutes away in Trent Lakes.
The Final Verdict: Lifestyle vs. Leverage
As the 2025 market stabilizes, the choice boils down to your primary goal:
Choose the Kawarthas if you value low-friction ownership. With easier winter access, proximity to the critical care and amenities of Peterborough, and a "commutable" distance to the GTA, this is a lifestyle-first investment that doubles as a reliable long-term asset. It is the "Blue Chip" stock of cottage country: steady, accessible, and high-demand for resale.
Choose Haliburton if you are looking for maximum cash flow. The combination of lower entry prices and premium rental rates makes this the "Growth Stock" play. If you don't mind the extra hour in the car, you are rewarded with the kind of deep-water, granite-shoreline privacy that renters are willing to pay a massive premium for during both the summer heat and the winter snow.
Looking Ahead to 2026
Regardless of which region you choose, the 2025 market has shifted the power back into the hands of the buyer. With inventory levels at a three-year high and interest rates cooling, the "hurry up and bid" era is over. Investors who take their time to find a property with proven STR compliance and four-season capabilities will be the ones best positioned for the next decade of growth.
Your next move? Start by defining your "drive-time tolerance." If a 2-hour cap is non-negotiable, focus your search on the Tri-Lake area (Pigeon, Buckhorn, Chemong). If you’re ready for the deep woods, set your sights on the Dysart et al township in Haliburton for the strongest historical yields.
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