Real Talk!

A 2007 study indicated that one in seven Canadians currently own a vacation property of some sort but one in four plan to purchase one in the future. Waterfront real estate is increasing in value thanks to the strong demand from Baby Boomers, stock market and residential real estate wealth and relatively low borrowing costs.

Vacation property may bring the family together for a few weeks of every year, but it can also be a revenue generator. Anyone considering a purchase, whether for personal use or for a return on capital should factor re-sale value and market appreciation into the equation, before they purchase. Buyers should use logic when they buy, remembering that if the need arises to sell, it will likely be a baby boomer buying.

Retiring Baby Boomers are looking at the high-end of the market. They want all the comforts of home, while they are cottaging and they likely plan to retire lakeside. This means, a smart purchase will be one that is fully equipped or one that can be upgraded in the future. Of prime importance: an ample supply of safe water, year round road access and reasonable access to amenities.

Traditionally, the cottage has been a place for families to escape the pressures of work in order to relax and get away from it all, including email, fax, pagers and the telephone. But that seems to be changing. Currently, about a quarter of cottage owners feel that Internet access is important at the cottage and almost half of those planning or considering a cottage purchase feel the same way.

The distance that cottagers drive to reach their second home varies greatly depending on the province in which they live. In the Atlantic provinces, more than 50% of cottage owners say it takes them under one hour to arrive at their cottage, while that number drops significantly in Ontario and Alberta, where the cottage commute is much longer. Prospective buyers in these provinces are realistic about the distance they will have to drive to get to their getaway, with the majority expecting to spend about 3 hours.

There’s no doubt about it, cottage shopping has become a ritual of spring. Once the snow melts and the first robin is spotted, baby boomers begin scouring the countryside looking to buy cottages and recreation properties. Investing in the future - from both a lifestyle perspective and an economic standpoint, baby boomers are expected to influence the cottage country market for another five to ten years.