Ontario
In Ontario, huge price tags are not uncommon; in some areas recreational homes can range from $1 million to $6 million. In Grand Bend, at the southwestern end of Lake Huron, the starting price is $400,000 and in the Muskoka Lakes region the starting price is $450,000.
Quebec
In Quebec, recreational buyers are most active in the Laurentians (north of Montreal) and in the Eastern Townships. The Laurentian real estate business has been booming ever since Intrawest invested more than $1 billion in various infrastructure projects to attract the baby-boomer market to Mont Tremblant. With its European style architecture, this resort is a condominium paradise for the pre-retired and “active retired” who can afford the lifestyle. This unique holiday spot has become the strongest economic player north of the Montreal metropolitan area.
The attraction towards the Eastern Townships is another story. This is one of the oldest regions in Canada, and you can still buy houses that were built during the Loyalist era in the 1800s. Buyers are attracted to the scenic views, particularly around Sutton, Dunham, Frelighsburg, and Brome Lake.
The Brome Lake (Knowlton) area is famous for attracting top buyers from Montreal and farther away. Prices start at $300,000 for a simple cottage, but the sky is the limit if you want a premium lakefront spot or acreage with a view.
Both of these Quebec regions are attracting weekenders and baby boomers, though nowadays Mont Tremblant is also attracting more and more European tourists.
Nova Scotia
A two-bedroom recreational cottage on lakefront property in Lunenburg, on Nova Scotia’s south shore, starts at $158,000, and oceanfront prices soar to $1 million.
In Big Bras D’or on Cape Breton Island, prices for a recreational cottage with accessible waterfront start at $225,000. At a 30-minute drive from Yarmouth, you will find waterfront cottage properties starting at $300,000.
New Brunswick
In Shediac Bay, New Brunswick, recreational properties start at $150,000. It remains a seller’s market in part because with low interest rates, many baby boomers are purchasing recreational properties. One factor that is limiting the number of available properties is that many families are handing their recreational properties down from one generation to the next. Recreational property in the Northumberland Straight area starts at $600,000. Canadians, Americans, Britons, and Europeans are attracted to the area’s reasonably priced land.
Prince Edward Island
Once the best-kept secret for recreational property, Prince Edward Island is gaining in popularity. Currently, a waterfront property starts at $200,000. In PEI, buyers from the United States, Canada, and Europe drive recreational property sales. The external demand has exerted pressure on cottage prices and is making the market less affordable for local residents.
Note that Prince Edward Island imposes ownership restrictions that limit beachfront property to 165 feet. This prevents international developers from monopolizing beachfront properties.
Newfoundland and Labrador
In Newfoundland and Labrador, low interest rates coupled with a shortage of listings have created a seller’s market. Buyers are primarily from out of province and the United States. In Newtown, in central Newfoundland, a three-bedroom oceanfront property, though extremely rare, is valued at approximately $100,000; in Humber Valley, prices can reach $1 million.
The Yukon
Fishing, hunting, skiing (both downhill and cross-country), hiking, rockhounding, kayaking/canoeing, boating, snowmobiling, and horseback riding are all popular activities in the Yukon, and these outdoor sports encourage recreational-property sales.
Popular recreational areas in and around Whitehorse are the southern lakes, in particular Marsh Lake and Tagish Lake, and north of Whitehorse, Lake Laberge and Fox Lake. It is currently a seller’s market, with waterfront property in high demand. Prices range from $100,000 for a cabin that needs to be fixed up, to $500,000 for a luxury cottage with great views. For recreational property not located on waterfront, there is a balanced market, with prices starting at $80,000.
The Northwest Territories
Activities such as trout lake fishing and snow-mobiling contribute to the popularity of this northern area for recreational users. Since 2003, in parts of the Northwest Territories there has been a seller’s market, influenced in part by an influx of new workers building pipelines and working in diamond mines. Cabins in Tibbit Lake, near Yellowknife, start at $60,000, but many properties in this area are located on leased land. Road access during the winter may also be difficult.
Cottage Associations of Canada
Cottage associations exist to help cottage owners who have cottage-related problems or questions. A cottage association can be an invaluable resource when you are buying or selling a recreational property. Some associations include real estate sections on their websites, while others may post only upcoming community activities. Cottagers’ associations can also help in other areas. For example, Ontario cottagers’ associations recently had input into the public consultation process that led to a land claims settlement with the Wahta Mohawk. See the appendix for a list of cottage associations.
A Note about Terminology
If you are new to buying or selling real estate or unfamiliar with some of the commonly used terms, please consult the glossary for definitions. Note that the terms “real estate agent” and “agent” are used interchangeably in this book.
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Searching for That Perfect Recreational Home
There are many options available to recreational home and property purchasers. You must consider your preferences for location and lifestyle. Couples or partners purchasing a recreational home together may need to make compromises or trade-offs. Choosing the right recreational home for you and deciding which areas best suit your needs are very personal choices.
Assess your personal preferences and think about the kind of lifestyle change living on a recreational property would entail, even if it’s for short vacations. For most people, a recreational home does not necessarily translate to living in a rustic log cabin in the thick of the woods. Rather, their ideal recreational home may have all the comforts of home, including custom cabinetry, spacious master suites, a gourmet kitchen, a home theatre system, specialty flooring, nine-foot ceilings, a landscaped backyard, a games room, and more. As a first time recreational purchaser, you need to think about what kind of needs and expectations you have (and determine how unrealistic some of these expectations may be!).
Where Do You Start?
Start looking for recreational real estate properties by scanning classified advertisements, Internet websites, and local real estate magazines. Multiple Listing Service (MLS), put out by the Canadian Real Estate Association, contains in-depth details of properties and is a valuable resource. An MLS feature sheet can contain information such as —
• price;
• total area;
• previous year’s taxes;
• monthly charges pertaining to strata title ownership;
•