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.
Get weekly money news
Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
“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.
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.
Read the full article here
