Young Canadians are turning to recreational properties in a bid to build wealth and break into the property market, a new survey shows.
Nearly half (45 per cent) of prospective buyers say they plan to buy a recreational property as an entry point into the broader housing market, a Leger survey conducted for Re/Max Canada published on Tuesday found.
Younger Canadians, who are typically priced out of expensive housing markets, are pinning their hopes on recreational properties. More than half (54 per cent) of 18 to 34-year-olds say recreational properties are part of their long-term financial planning goals.
This figure was notably lower (30 per cent) for Canadians aged 35 and older.
Younger Canadians are drawn to recreational properties as traditional, urban housing markets in big cities feel out of reach and unaffordable for many, Re/Max said.
“Recreational properties are no longer viewed solely as discretionary purchases, but instead as a foothold into homeownership with long-term value potential,” said Don Kottick, president of Re/Max Canada.
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“For many, it’s about building equity in a different segment of the market while creating something tangible that can be held, leveraged, and passed down across generations,” he added.
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Six in 10 prospective buyers (61 per cent) say they are looking for recently renovated properties, while a similar number (59 per cent) said they would want to use the property year-round, not just in the warmer seasons.
“It’s no longer just about having a place to escape,” Kottick said.
“Buyers want properties that are ready from day one and flexible enough to support everything from weekend use to full-time living.”
But not everyone is feeling good about heading up to the cottage, with 28 per cent of current owners saying they hope to sell their recreational properties soon with the return of in-office mandates and decline of remote work.
Additionally, 14 per cent of Canadians who do not own a recreational property report hesitating to purchase because of return-to-office mandates, the survey shows.
Owning a cottage comes with a cost, even if you inherit one. Two in five respondents (40 per cent) said if they were to inherit their parents’ recreational property, they would struggle to keep up with maintenance costs.
These are not cottages as I understand it.
These are houses.
More gaslighting from global news
LOL why spend money on buying a house when you can just buy a cottage that you only use several times a year?
What are you smoking? Can I have some? A cottage usually costs far more than an urban bungalow. Unless you’re talking about everyone in a 80 sq ft tiny house.
I find the nay-saying comments to be interesting. I am one of those people the article is talking about. Took a look around the city I live in and thought “1 million for a condo? No thanks.” So bought a bare residential lot on a Gulf island for 30k instead. “Cottage” is a generous term though for a Bunkie. And since there is no building, taxes are negligible.
In BC you would be taxed with Spec Tax and Empty Home Tax on a second property. David Eby has put ridiculous taxes on realestate. I had to sell my vacation home in BC and bought a USA holiday property. Now we are down south spending our Canadian money in the USA.
Please don’t forget, this property may be included in the empty homes tax regulations, many are! This can add a considerable amount to the annual cost of owning a home! You can’t win!
I like teddys comment…
I think you mean tents.
What a foolish article. Canadians cant buy a basic house so they are turning to luxury resort properties.
1984 was not an instruction manual you goofs.
So young people are buying cottages they can’t afford hoping to rent it out for 6-8 weeks and that’s going to give them income to buy a house. Wow, Global sure is bought and paid for.
This is so stupid. Do better global
No it’s not and this is a propaganda post to pump real estate
Another slow news day !!!
Young people who can’t afford a home are going to buy a holiday home and can afford to run one plus pay rent on their primary residence? Come on Global do better.