The majority of Canadians who have either purchased or who intend to buy recreational property in the next 24 months believe that buying a vacation home is a good long-term investment, according to a nationwide survey of Canadian attitudes towards recreational property ownership commissioned by Royal LePage Real Estate Services. "Canadians' confidence in recreational property values is mirroring what we have been seeing in Canada's urban centres," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. "This spring, the horror stories from some fundamentally flawed international housing markets that had dampened demand for cottage-type living during the recession era, are being shrugged off. Canada's traditionally buoyant recreational property market appears to have found its groove once more."
How serious are the recreational buyers?
• 35% stated they were likely to reduce personal spending throughout the year by making financial and lifestyle changes in order to purchase a recreational property.
• Will higher interest rates affect the majority of these people? I don’t think so, 57% said that the expectation of interest rates rising will not affect their desire to purchase a recreational property; 55% of respondents aged 35-54 and 70% of respondents aged 55+ said an expected rise in interest rates would not affect their desire to purchase a recreational property.
• 51% expect to rent out the property to off-set the mortgage
• 92% see the recreational property as a way to bring the family closer together
Across the Country: Recreational Property Buyers at a Glance:
Quebec
73% of those surveyed in Quebec listed quiet as the most important feature of a recreational property, which is more than 20% higher than the national average 51%
Quebecers like to reside the closest to their recreational properties, with 40 % of respondents saying they would be willing to drive less than one hour to reach a vacation home. Fourteen % use, or intend to use, their properties more than once a week, more than any other region and eight % higher than the national average of 6%.
Ontario
The three most important attributes of a recreational property according to Ontario residents are four-season use (47%), quiet (45%) and rental potential (26%).
With Canada's strengthening economy and an expected rise in interest rates, 46% of prospective recreational property buyers in Ontario want to buy before a potential increase in rates.
Sixty-one % of Ontarians polled are most likely to purchase a cottage on a lake in the next 24 months. This is higher than the national average of 57%.
Alberta
According to Albertans polled, the three most important features of a recreational property are four-season use (50%), quiet (45%) and proximity to amenities (41%).
Nearly all (97%) of respondents from Alberta either somewhat agree or strongly agree that a recreational property is a great way to bring family together.
British Columbia
According to respondents from BC, the most important features of a recreational property are four-season use and quiet (tied at 43%) and proximity to amenities and rental potential (tied at 31 %).
Eighty-five % of respondents from BC either somewhat agree or strongly agree that a recreational property is a great way to bring family together (seven % below the national average of 92 % and lowest in the country).
"We are seeing more buyers purchase properties with the intent to offer them as rentals. This cost-offset strategy may allow younger families to acquire a cottage earlier in their lives than they would otherwise, and others may be able to buy in a region that would have been out of their reach, price-wise. The purchase motivation for most is not financial planning. It remains lifestyle driven - satisfying the needs and wants of their family," said Soper. "In fact, 92 % of those we polled agreed that a recreational property is a great way to bring family together."
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