POINTERS FOR PROCURING YOUR OWN PERSONAL PIECE OF PARADISE:
Province
The Galiano Inn and Spa on Galiano Island has redesigned itself as a recreational quarter-share property and cool holiday getaway.
Have you been thinking about buying a recreational property? If so, the long weekend will be a perfect time to have a look at some properties. Here are some tips to get you started:
Consider going south
Point Roberts – considered part of Washington state – is on the southernmost tip of the Tsawwassen Peninsula. The area is home to many Canadian property owners who pay significantly lower prices there compared to comparable properties on the Canadian side. And you don’t have to worry about long lineups at the border (they’re short!). A perk of having a place on the U.S. side is you can fill up on cheaper gas before trekking north. Something to consider is that you can’t bring liquor or produce over the border, so you’ll have to buy these items in Point Roberts. And make sure you have a passport!
The bigger the island, the higher the price
Determine for yourself the price you’re willing to pay for convenience and amenities. Salt Spring Island is the biggest and most populated of the Gulf Islands but also the most expensive. Pender Island is a close second. If you have money to put into a home on one of the more developed islands but don’t want to be too far from the creature comforts to be found in a small city, these are good options.
Share the property
If you’re really intent on scoring the property of your dreams but unwilling to pay the full price, think about joint ownership, suggests Andrew Peck, a past president of the B.C. Real Estate Association. Half and quarter shares make a fantasy recreational property more affordable. It’s even something that condominium developers have caught on to.
In the Gulf Islands, several properties are in the business of arranging joint property shares for homeowners by allocating property availability depending on the owners’ needs. The trend first began in Whistler, but over the past five years it has spread to the islands.
Sharing the property can work for you in the long run because the property will be occupied and maintained regularly. A downside is you’ll be paying a premium price for it. Peck estimates that a quarter share in a “nice development” could cost you upwards of $200,000.
Do the homework
When you have whittled your choices down to one or even two areas you’d like to buy in, finding a local realtor is the most important first step, Peck says. They’ll have specialized knowledge on the area and can offer you insights you might otherwise have ignored.
And don’t forget the money. If you’ll be applying for a loan, the good news is that the bank will look at the equity in your personal home and consider it good security. But you’ll have to make sure that you can afford the mortgage on the recreational place on top of your current home.
Can you handle it?
If the real estate market ever goes belly up, recreational properties are the first to go, says Peck. Make sure that when you buy a second home that you can afford it even if the economy goes through tough times. Don’t overbuy. Make sure that you can foreseeably continue to own it. And don’t forget to factor in the maintenance costs of having a recreational home. Wind and snow storms are not uncommon and can mean trouble for pipes and nearby trees.