Real Talk!

While recent headlines may warn that Ontario prices may dip, readers must be cautioned not to expect the same for cottage country properties. Statistics Canada figures indicate that since 1999, the level of vacation property ownership has remained stable and in fact, may show an increase.

Re/Max, in its annual first-quarter recreational property report surveys 50 recreational markets across the country and found that 79 per cent saw higher sales in the first quarter compared with 2009, and 43 per cent reported "nominal" price increases.

Richard K.C. Ling, broker for Harvey Kalles Real Estate in Toronto says “Waterfront prices never went down. Sellers just waited till they got their price. This year, prices have gone up again, and prices will climb as you have less (waterfront) property to play with.”

The average age of a vacation property owner is in the early 50s and these folks will likely use these places extensively if they have children. However, about ¾ of these properties are owned by childless couples and seniors who benefit from renting the properties out. Simple cottages may fetch $1000 or $2000 per week or more.

A recent Angus Reid national poll asked buyers why they plan to purchase recreational property, lifestyle was the number one reason given. As Phil Soper (president and chief executive, Royal LePage Real Estate Services) explains, “Canadians appear prepared to make significant investments in order to enjoy their leisure time."

Christine Van Cauwenberghe (a tax and estate planner) says, “Although there may be a gain in a property in the end in terms of an investment, this is not like buying a mutual fund where you have no emotional investment. This is a very sentimental and personal decision.”

Buyers rank the most important features they look for in a recreational property. The current survey says the three most important features to potential buyers in Ontario are waterfront/beach access (61 per cent), four-season use (47 per cent) and peace and quiet (40 per cent). For those looking to secure a recreational place that will become their retirement home, the factors that really count are those that make everyday life pleasant and include things like climate, culture, schools and municipal services.

Gail Bebee (personal finance speaker and author) suggests that a big part of the cottage value equation boils down to location. A cottage that is within a few hours' drive to a big city and is perched on a body of water is more likely to increase in value and should be easier to sell. A recreational property that has a range of amenities and is close to activities will also have greater appeal, especially for Baby Boomers who are looking forward and want their retirement home to be comfortable and convenient.

Some are finding new ways to cope with the high price of waterfront. The Royal LePage recreational property report says some younger families are pooling their resources to buy properties together. Others are generating income by renting out their properties when they’re not in use. A further trend is to buy a property that’s across the street or a block or two away from the water.

“If someone can’t afford the beach,” says George Watson from In Touch Realty, “they can move across the street where a lot would sell for less than half the price.”

Real estate experts say there are seven buyers for every 'perfect' waterfront property. With the supply of waterfront lots in the prime locations almost all gone, the competition for what's left is fierce. Finding the lots people really do want is a real challenge.

It’s no surprise that waterfront real estate is “one of the best investments you can make,” says Pauline Aunger, immediate past president of the Ontario Real Estate Association. What makes real estate in waterfront communities so resilient? “Because there will always be seven buyers for every perfect waterfront home,” says Aunger. “The great Canadian dream is to own waterfront.” Real estate agents report there are fewer and fewer empty building lots left in Ontario’s prime waterfront locations. “There doesn’t seem to be any easily accessible water left in Southern Ontario” that hasn’t been built on, says Aunger.

Developers, feeding the insatiable appetite for all-season homes near the province’s waterways, are being forced to look ever farther afield. They are snatching up old industrial sites, small infill properties and land along lakes farther away from the more than eight million people who call the Golden Horseshoe home.

“Cottage country” used to mean a simple general store and a dirt road leading down to a two-room cabin, a Muskoka chair sitting at the end of the dock. Little of that remains. The emphasis today is on more of a spa-like experience... a lifestyle, even if that lifestyle is created on a little-known lake or river.

What's really important for a cottage owner (or prospective cottage owner) to know? The difference between and Adirondack and a Muskoka Chair!

Well, THAT, plus getting a really good real estate professional to help them find the right deal in cottage country!

Incidentally,

the Adirondack chair features a flat yoke behind the seat, the Muskoka chair’s is curved. Often Adirondack chairs are a little higher off the ground and a touch wider between the arms than the Muskoka.