“Owning a resort condo or fractional property has a lot of upsides but they typically revolve around lifestyle, recreation and leisure. I would be cautious about purchasing strictly for investment purposes. Collectively we just haven’t seen prices in these categories outpace inflation plus the cost of upkeep,” says John Aben, a sales rep with Royal LePage Lakes of Muskoka Realty in Muskoka
People need to do their due diligence when it comes to this type of properties, which some see as an alternative to the pricier recreational homes found on Muskoka’s Big Three lakes, says Aben.
“You really need to work with a Realtor that knows the market where you want to buy,” he says.
“I feel for those people in Toronto that have bought into certain resort communities and ending up losing money,” he adds.
Aben says fractional ownership properties have also not done well recently on the resale market, which as a whole has been on a “slow, steady incline since 2008.”
That’s not to say resort properties can’t be a good investment, the decision should just be done on a case-by-case basis, says Aben.
One development that has many investors taking a look at the Muskoka region is the recent announcement that Skyline International’s CAD$500 million plans for Deerhurst Resort were given the go-ahead by city council.
The master planned community and new Deerhurst Village Centre will include 150 new hotel rooms, 45,000 square feet of retail and plans for multiple boutique mixed-use buildings totalling nearly 500 residential units.
This is tremendous news for Hunstville and the Muskoka District’s hospitality and resort offerings,” said Huntsville Mayor Scott Aitchison. “Deerhurst is set up to be a major hospitality magnet for international and Canadian travellers for the foreseeable future.”
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, Glen Harbour, Pierreville, Waterborough, Stilesville
For some investors looking to get into Canada’s ritziest cottage country market, the expectation that resort condominiums might be the answer, may prove an illusion, according to one area Realtor.