Cottages prices going through the roof
Talbot Boggs - Canadian Press
It’s summer, and all across the country Canadians are loading up their cars and vans with the kids and supplies and heading off to the cottage or the cabin for a weekend, a vacation or even for the entire season - short as it is. Canadians have a love affair with the cottage. And why shouldn’t they?
Cottages are a great way for families to escape the city, unwind, bond together and create some great life-time memories. They’ve also been a darn good investment in recent years.
The average price of a cottage in Canada has more than doubled in since 2000 and has gone up more than 12% in the last year, currently hovering at more than $427,000, the latest report on vacation properties by Royal LePage reveals.
Of course, the price depends a lot on where you buy. The average price for a piece of vacation real estate ranges from $86,500 in Newfoundland to $225,000 in Prince Edward Island, $525,000 in Quebec, and a whopping $1 million in British Columbia.
In Ontario’s trendy and popular Muskoka region, lakefront properties have been known to fetch as much as $6 million.
“The demand for recreational property continues to far exceed supply across Canada, causing cottage prices to rise at a much quicker rate than the overall housing market,” says Phil Soper, president and CEO of Royal LePage Real Estate Services.
Just how far are Canadians willing to go to get a piece of their own rural paradise? Pretty far it seems.
Twelve per cent of Canadians say they are planning to, or are considering, buying a recreational property in the next three years. And of those who are considering making such a purchase, 49% are willing to move into a smaller principal home to afford a cottage and 32% are willing to take on a second job in return for a piece of lakeside living.
“Families are managing the affordability challenge with creativity and personal flexibility,” says Soper. “Prospective purchasers on a budget can still find a cottage or cabin, but they may have to accept a longer weekend commute, seek alternate ownership options or subsidize ownership through rental income.”
Purchasers today are taking out mortgages to buy their vacation properties instead of personal loans as they did in the past. And they are looking for more substantial homes in the country to provide them with access to entertaining activities such as snowmobiling and hunting and fishing as well connections to the internet.
“With the booming trend of satellite offices and instant messaging capabilities, being ‘wired’ at the cottage is of utmost importance to some cottage owners and purchasers,” the report says. “Interestingly, however, 69% of parents who own cottages cite that part of the reason they go to the cottage is to ‘unplug’ their kids and have them spend time outdoors.”
Cottagers do say, however, that rising gas prices is one factor that could change their minds about owning or keeping the cottage.
Almost one quarter of Canadian cottage owners said they will reduce the number of trips they make to the cottage this summer because of high gas prices while 12% say they will consider selling their property if prices continue to rise.
Still, Canadians by the thousands continue to hit the road during the summer and head to the cottage to enjoy the outdoors, escape from the hustle of city life and spend quality time with their friends and family.
Talbot Boggs is a Toronto-based business communications professional who has worked with national news organizations, magazines and corporations in the finance, retail, manufacturing and other industrial sectors.
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