Summer is (finally) here, so many of your clients will head to their cottages and favourite vacation spots.
As property prices rise, however, you may find young families are struggling to realize their dreams of owning recreational property. According to a survey conducted by Leger, some families with children under the age of 18 (28%) would even consider selling their primary residences in the city to purchase a cottage, cabin or ski chalet.
Other common financing options are fractional ownership in shared properties or purchasing a recreational property with a friend, says Christopher Alexander, regional director of RE/MAX INTEGRA, Ontario-Atlantic Canada Region.
In Leger’s survey, nearly half (44%) of millennials (18 to 34 years old) said they would purchase a property with a family member, while 39% would purchase a property and rent it out using a vacation rental site. Meanwhile, one in five said they would consider both fractional ownership of a shared property or buying with a friend.
Overall, about two-thirds of respondents (65%) expressed interest in purchasing a cottage, cabin or ski chalet in the next 10 years. A quarter of respondents also indicated they would consider purchasing a recreational property as an investment vehicle to help finance retirement.
Demand rising for recreational property
In a separate survey of RE/MAX brokers and agents, 73% of regions indicated young families with children are a key driver of demand in the recreational market, including established regions such as the Okanagan Valley in B.C., Canmore in Alberta, Collingwood in Ontario, and the Laurentians in Quebec.
Retirees are also driving demand across Canada, the survey says, with more than half (55%) of regions surveyed reporting an increase in retiree buyers compared to last year.
The survey of brokers and agents also finds 39% of recreational regions see more buyers leaving the Greater Toronto Area and B.C.’s Lower Mainland, compared to last year. Some are even going as far as P.E.I’s north and south shore.