Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

March 6th - 2004

Cottage ownership on the rise

According to a recent Royal LePage survey, more Canadians are purchasing vacation homes.

According to a recent Royal LePage survey, more Canadians are purchasing vacation homes. The survey results state that over the next
three years six per cent of Canadians are likely to purchase a cottage/recreational property.

Sherry Chris, former executive vice-president for Royal LePage is quoted as saying, “In 2003 there will be four Canadians seeking recreational properties to every one cottage owner who plans on selling and this scarcity of supply continues to exert pressure on property prices across the country.”

Such is the case here in Ontario where demand is up and supply of the desired property is definitely down. “We are seeing a strong trend towards consumers who want to be on the waterfront or adjacent to the waterfront either immediately or within the next five years,” says Jan Sargeant, Associate Broker, Royal LePage Lakes of Muskoka in Huntsville, Ontario. “We have more buyers than the right kind of product right now.”

Sargeant says there has also been an increase in the number of out-of-area board members wanting to list properties in cottage country. But while the prospect of selling a million dollar cottage in Muskoka may sound attractive to a REALTOR in an urban market, there are some unique challenges involved when dealing with cottage property.

“Shore road allowances, wells and septic inspections, environmental and insurance issues can pose great challenges for urban REALTORS,” says Sargeant. “Our area is experiencing changes in municipal and district governance and property tax reassessments that have resulted in huge tax increases for the property owners. REALTORS need to be aware of all of these issues to avoid serious problems with a cottage transaction.”

Financing cottage properties is another big challenge. Traditional lending institutions usually advised purchasers to take out an equity loan or second mortgage on their principal residence.  But, one mortgage brokerage firm, Mortgage Intelligence, has launched a new product for the vacation home market.  The mortgage is available for cottages, owner-occupied ski chalets, and non-winterized or seasonal properties with year-round access. This new product, called “irelax” features up to 85 per cent financing and is available in three-year and five-year fixed rates. To find out more visit www.mortgageintelligence.com and click on “irelax.”

Mortgage Intelligence says the average age of vacation home owners is 52, and that during the next several years, aging baby boomers will fuel the demand for recreational properties.

Interested in selling resort and second home properties? Attend “Escape to the Cape!” Resort Symposium and Workshop 2004 being held at the Cape Codder Resort and Spa, June 9-11 in Cape Cod, Massachusetts. Learn how to promote and communicate effectively to be successful in the resort and second home market while expanding your network of referrals. For more information visit  www.realtor.org/resort.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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