Province
Recreational property is doubling in value every three to five years — and it’s no wonder, says the author of The Complete Guide to Buying and Owning Recreational Property in Canada.
“There is such a demand that it will keep on going up,” says Douglas Gray.
A former practicing lawyer, he is the Vancouver-based author of 24 best-selling Canadian books on real estate, small business and personal finance, as well as a consultant, columnist and speaker.
In his recent book on recreational property, he outlines the many factors driving buyer demand. Each has its own effect on the market:
– Boomers: Gray defines them as people born between 1945 and 1967. Because the tip of this group has just passed 60 years of age, lifestyle needs and wants are changing, he says.
People in this demographic are downsizing, cashing out on huge home values and buying a condo or smaller house — and taking that money to buy another, secondary home either in a warmer climate, or close to amenities that appeal to them, such as ski hills.
– Inheritance: Adding to the boomers’ wealth is the money they inherit from their parents. Some estimates say Canadian boomers are expected to inherit as much as $1 trillion in bequests over the next couple of decades.
nRetirement: Whether the boomers are retiring now or in the future, they’re buying now, says Gray.
– Quality of life: The need for a less hectic pace of life and getting away from the city stresses play a part in recreational property purchases, says Gray.
– Investors: Buying for investment is still a prime motivator for many people. Investors are a “hybrid mix,” says Gray. “Some buy for personal use and revenue generation, and some are 100-per-cent investment.”
© The Vancouver Province 2007