Royal LePage recently released a comprehensive report on the recreational real estate industry in Canada, entitled the 2016 Canadian Recreational Housing Report
, which found a growing number of investors are turning to this lucrative segment.
According to the report, 49% of recreational property buyers purchased for the purpose of investing; 64% of advisors polled said potential purchasers purchase for the sake of retirement.
Additionally, low rates are encouraging purchases of recreational properties.
“Canada’s extended low interest rate environment has clearly provided buyers with the confidence they need to invest in a cottage or cabin,” Phil Soper, president and chief executive officer, Royal LePage said. “In contrast to urban home purchase decisions, buying a property on a lakefront or mountainside is much less about interest rates, and more about enhancing lifestyle. Cash savings trump mortgage financing when it comes to how people are acquiring recreational property.”
The survey also found that the recreational property market isn’t of great interest to foreign buyers.
“Almost 95% of respondents surveyed for the report stated that foreign buyers were responsible for 10 % or less of recreational property transactions,” Royal LePage said in the report. “When asked to identify where foreign buyer activity originates from, the most common answer was North America (79%), with the majority (64%) of those who specified a country of origin stating purchasers were Americans.”
To read the entire report, which includes regional analysis, click here
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Welsford, Les Coteaux, Snow Lake, Frenchman's Cove, Tory Hill
Cottages are a hot investment option for Canadians, and they may be one of the few properties overlooked by foreign buyers.