CANADIANS STILL ASPIRE TO OWN RECREATIONAL PROPERTY: DREAM ALIVE AS SUMMER ARRIVES

Recreational properties still considered a safe long-term investment and provide the ultimate Canadian family ‘staycation’ poll shows

TORONTO, June 18, 2009 – Despite the economic downturn, many Canadians are still dreaming of owning a recreational property, both as a long-term investment and to enjoy with family and friends.  Canadians are willing to make sacrifices to own a cottage, and more want to use their cottage, cabin or chalet year-round as a recreational property and, for some, as their primary residence, according to the 2009 Royal LePage Recreational Property Report released today .

The 2009 Royal LePage Recreational Property Report comprises a nationwide survey of Canadian attitudes towards recreational property* ownership, coupled with a market analysis of recreational property prices, trends and activity in selected leisure markets across the country.

“The survey showed the dream of owning a get-away property on the water to escape the pressures of city life and to relax with family and friends, is still alive and well across the country,” said Phil Soper, President and Chief Executive of Royal LePage Real Estate Services. “Beyond the obvious lifestyle benefits however, our research demonstrates Canadians see recreational property as a smart and safe long term investment.”

The survey found that 64 per cent of Canadians view cottage ownership as a sound investment. To pursue their dream of buying a recreational property, 55 per cent of Canadians would be willing to make compromises with regards to their financial or lifestyle choices, such as purchasing a property with family and friends, renting out their cottage, making a cottage their primary residence, buying a fixer-upper, or moving into a smaller principal home in the city.
 
Added Soper, "An interesting trend is emerging that we believe is a direct response to the increasing size and congestion of our cities, accelerated by the recession.  More and more Canadians have a desire to escape the urban jungle and use their recreational properties year-round.  To save money, a majority told us that if they owned a cottage, they would be happy to call it their new vacation destination. It appears that many view owning a recreational property as the ultimate, no-hassle ‘staycation’ and one that presents an opportunity to invest while they enjoy.”

“While Canadians build their own personal equity through cottage ownership, they also contribute to the economy of the small leisure communities they vacation in by shopping at the local stores and through activities such as boating and golfing,” continued Soper.

Following a reduction in sales in the latter half of 2008 and over the winter, the recreational market is now showing signs of renewed interest and increased activity.  Consumer concern about the recession and increasing inventories have eased demand and helped alleviate the chronic supply shortage that has characterized the recreational real estate market in recent years.  Improved affordability is keeping many markets busy.  So far this year the busiest areas have been those offering more modestly priced or entry-level properties, such as the Kawarthas in Ontario.

Given their choice, 68 per cent of Canadians would purchase a recreational property on a lake, far and away the most popular choice.  According to the 2009 survey, 89 per cent of Canadians think a cottage or cabin is a great place for family to gather, and 86 per cent think it is a great way to get out of the city for recreation and relaxation.

Canadians believe that the three most important features of a recreational property are peace and quiet (58 per cent), access to utilities*** (50 per cent) and four-season use (39 per cent).  These factors are consistently rated among the top three across all regions. Other highly rated features include access to boating and fishing (23 per cent), proximity to amenities (18 per cent), ecologically friendly or “green” sites (17 per cent) and year-round activities (16 per cent). Rounding out the top 10 features Canadians desire were sunset vistas, docks, and deep water, at 16 per cent, 15 per cent and 9 per cent respectively.