Buy­ers seek­ing bet­ter life­style

At­ti­tudes gauged in sur­vey

Calgary Herald - Calgary Herald New Condos - - Recreation & Investment Properties -

For al­most half of Cana­di­ans in a na­tional sur­vey, buy­ing a recre­ation prop­erty is about life­style.

Their de­sire to im­prove their life­style by buy­ing an es­cape des­ti­na­tion comes de­spite con­cerns about in­creas­ing taxes, ris­ing in­ter­est rates and new reg­u­la­tions that re­quire higher down pay­ments on sec­ond homes, says an An­gus Reid sur­vey.

Cana­dian at­ti­tudes to­ward recre­ation prop­erty own­er­ship were re­cently gauged in the sur­vey, which was com­mis­sioned by Royal LePage Real Es­tate Ser­vices.

When buy­ers were asked why they plan to pur­chase recre­ation prop­erty, life­style was the num­ber-one rea­son given at 47 per cent.

Only one in four buy­ers say new Canada Mort­gage and Hous­ing Corp. reg­u­la­tions re­duce their de­sire or abil­ity to pur­chase a recre­ation prop­erty.

The changes will re­quire Cana­di­ans to pay a min­i­mum 20 per cent down pay­ment on any res­i­den­tial or recre­ation prop­erty they buy that is not their pri­mary home.

Cana­di­ans are more concerned about in­creases in tax­a­tion af­fect­ing their abil­ity to buy vacation prop­er­ties — with 49 per cent re­spond­ing that they are concerned about things such as new tax­a­tion rules such as B.C.’s HST (Har­mo­nized Sales Tax) on new homes.

Forty-six per cent expressed con­cern about in­creas­ing prop­erty taxes.

Twenty-six per cent of those sur­veyed want to pur­chase a recre­ation prop­erty be­fore in­ter­est rates start to rise, while 10 per cent said a hike in in­ter­est rates would stop them from pur­chas­ing.

“Cana­di­ans are gen­er­ally con­fi­dent about buy­ing recre­ation prop­er­ties be­cause they see a pay­off in terms of im­proved qual­ity of life,” says Phil Soper, pres­i­dent and chief ex­ec­u­tive of Royal LePage Real Es­tate Ser­vices.

“The sur­vey re­sults show that tight­en­ing of lend­ing re­quire­ments for sec­ond homes, cou­pled with an in­crease in taxes and ex­pec­ta­tions of higher in­ter­est rates, may have a damp­en­ing ef­fect on the recre­ational prop­erty mar­ket. How­ever, there con­tin­ues to be strong de­mand for sec­ond homes and Cana­di­ans ap­pear pre­pared to make sig­nif­i­cant in­vest­ments in or­der to en­joy their leisure time.”

Forty-three per cent of re­spon­dents said they would buy a vacation prop­erty be­cause it is a good in­vest­ment — down from 64 per cent in a com­pa­ra­ble Royal LePage sur­vey con­ducted in 2009.

“Fewer peo­ple are look­ing to ac­quire recre­ation prop­erty for its in­vest­ment value this year, a di­rect re­sult of ris­ing cot­tage prices,” says Soper. “The brave bar­gain hunters who pur­chased dur­ing the depths of the 2008-2009 re­ces­sion have been re­warded by ap­pre­ci­at­ing prices this year.”

One-third of re­spon­dents in the 2010 sur­vey said they will not have to make any fi­nan­cial or life­style changes in or­der to af­ford a recre­ation prop­erty.

Twenty-five per cent said they plan to rent out their recre­ation prop­erty for part of the year (up from 13 per cent in 2009).

Only 15 per cent plan to pur­chase a vacation home with friends or fam­ily.

The sur­vey was com­mis­sioned as part of the 2010 Royal LePage Recre­ational Prop­erty Re­port, an an­nual mar­ket anal­y­sis of prices, trends and ac­tiv­ity in se­lected leisure mar­kets across the coun­try.

Cana­dian at­ti­tudes to­ward recre­ation prop­erty own­er­ship were re­cently gauged in a sur­vey com­mis­sioned by Royal LePage Real Es­tate Ser­vices.

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