Toronto Star – May 21, 2005

Page: N13
 
The average price of a waterfront cottage has jumped to $351,212 in Ontario, up 7.2 per cent from last year, according to a Royal LePage Real Estate Services' study.

Despite the steep average price, there are some "hidden gems that are still affordable for those on a limited budget," says a market analysis by the realtor.

In the Killarney and Manitoulin Island area, north of Parry Sound, cottages can be had for $80,000 to $200,000.

And in the areas of Madoc, Marmora and Tweed, north of Belleville, cottages can be purchased for $130,000 to $270,000.

"Affordable pockets of paradise are still available," states a report by Royal LePage.

Mortgage broker Invis says that while almost all cottage buyers want road access, they can get significantly better deals for water-access cottages.

Buying with other families and choosing a cottage in a more distant location will also lower the price, Invis advises.

Meantime, the average price of recreation chalets and condominiums saw an even bigger increase from last year, jumping 15.9 per cent to $337,625.

The rise is being fuelled by strong demand. There will be seven prospective purchasers for cottages and recreational properties for every two property owners who plan to sell within the next three years, according to Royal LePage, which conducted a poll on the issue.

"Financial inheritance, an aging population, changing lifestyles, and technological advancements are some of the factors drawing more buyers into the recreational property market, causing a disproportionate number of buyers to sellers," says Royal LePage president Phil Soper.

The survey of 654 Canadians found that 9 per cent own a cottage or recreational property while 5 per cent are planning to purchase one within the next two to three years.

"Given that only 17 per cent of current owners report that they will consider selling their recreational property in the next two to three years, and that there is limited property available, potential purchasers may have to be more flexible in their search," advises Soper. Those surveyed reported that long commutes and Internet access were major factors in their search.

Meantime, mortgage broker Invis says that purchasing a cottage isn't the daunting experience many believe.

"Most people assume that financing a vacation property is an expensive and complicated undertaking, especially if it happens to be in a rural area," says Jim Rawson, regional sales manager for Invis.

"In fact, you should be able to obtain financing at the same, if not better, interest rate than on your principal mortgage."

The Royal LePage poll was conducted Between April 21 and May 1. The results are considered accurate with 3.8 percentage points, 19 times out of 20.

For media comments and inquiries, please contact:

Steven Moyes
604-879-0228
E: Steven Moyes