Interesting article

Recreational Property Values in Canada ‘Set to Soar’
by Jim Adair
Canada’s two largest real estate companies issued reports about recreational properties this week, and while bargains can still be found for those willing to travel and buy seasonal properties, prices are climbing in most parts of the country.

The 2007 Re/Max Recreational Property Report says starting prices for waterfront properties are more than $500,000 in 31 per cent of the recreational property markets, and that only seven markets offer waterfront properties starting at less than $250,000.

Re/Max says aging baby boomers, which represent about one-third of Canada’s population and control 45 per cent of its wealth, are driving the recreational property market. Some are preparing for their retirement years, while others are looking for a second home in which to spend time with family and friends.

“Baby boomers are investing in the future — both from a lifestyle perspective and an economic standpoint,” says Eldon Ash, regional director at Re/Max of Western Canada. “Tremendous equity gains have been realized in recent years as demand for recreational properties across the country swells. Given the aging of the population, this trend is expected to continue for at least the next five to 10 years as baby boomers move through the cycle.”

A Royal LePage report lists some of the hottest cottage areas in Canada, including the Moore Point area in Ontario, where cottages cost up to $3 million; Chester, N.S., which has top-end properties for $1.5 million; and Okanagan Lake in Kelowna, B.C, where small waterfront condos start at $500,000 and year-round waterfront properties range from $1 million to $5 million.

Royal LePage says the big attraction in Kelowna is the recreational lifestyle and the climate. “For example, in April you can ski in the morning, golf in the afternoon and be cruising in your boat at the early evening — all in the same day,” says the report. Read the rest of the story here

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