According to a new survey from Royal LePage, interest rates factor hugely into decisions of Canadian households when it comes to purchasing a recreational property. The survey, which polled Canadians across the country who either currently own or intend to purchase recreational property within the next five years, found that most (82 per cent) Canadians say interest rates will influence their decision to purchase a recreational property- and a majority (58 per cent) feel added urgency to buy a recreational property while interest rates are low.
Here are a few interesting points summarized from the survey:
“Despite financial and economic uncertainty, or perhaps because of it, we have found that the enduring value of recreational properties is widely-recognized by Canadians,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “In contrast to our large urban centres, where home prices shot up in recent years before rapidly cooling in 2013, the recreational property market has remained remarkably stable and resilient.”
“…However in Canada today, where we see virtually no return on bonds and other forms of modest risk savings, it is reasonable to view recreational property in a new light. This prolonged low-interest environment supports purchase decisions based upon lifestyle and supported with a sound investment thesis.”
“For those planning to purchase a recreational property for retirement, financial feasibility is among the most important factors they are looking for, with affordable purchase price (56 per cent) and reasonable maintenance costs (39 per cent) topping the list. Waterfront access (37 per cent), proximity to town (33 per cent) accessible medical facilities (26 per cent) and proximity to their primary residence (22 per cent) were also cited as important property attributes.”
“Canadians have long valued the ability to escape the city to spend time with friends and family,” said Soper. “A place to get away from the pressures of daily life seems to be more attractive now than ever. From coast to coast, Canada offers some of the world’s most spectacular landscapes and friendly communities.”
Click the following link to read the full survey:
http://www-c.royallepage.ca/news/canadians-interested-in-recreational-property-feel-added-urgency-to-leap-while-rates-are-low/