Canadian market offers major opportunity for fractional real estate sales | #Toronto #realestate

Fractional Ownership News

Canadian market offers major opportunity for fractional real estate sales

Canadian buyers are in upbeat mood about buying vacation homes, reports CanEquity.com, in a positive sign for the fractional ownership market. According to a new opinion poll conducted by Angus Reid and commissioned by Royal LePage Real Estate Services, almost half, 47%, of Canadians considering buying a recreational property will do so to improve their lifestyle, despite concerns about increasing taxes or rising interest rates.

Painted Boat  fractional property Canada
Canadian buyers are upbeat about second homes, which could be good news for fractional resorts such as Painted Boat in British Columbia

 

 

 


“Canadians are generally confident about buying recreational properties because they see a pay off in terms of improved quality of life,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “There continues to be strong demand for second homes, and Canadians appear prepared to make significant investments in order to enjoy their leisure time.”

Investment is a less prevalent motive for purchase than in previous years, according to the survey with 43 per cent of respondents saying it was their prime reason for buying – down from 64 per cent in a comparable Royal LePage survey conducted in 2009.

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

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 recreational property, while 25 per cent of respondents said they plan to rent out their recreational 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.

Waterfront properties continue to be the most desirable recreational real estate for potential buyers, and condominiums are the preferred property type for 24 per cent of buyers, up from just six per cent of buyers in 2009. 50% ranked waterfront or beach access as the most important feature.

For almost half of survey respondents, buying a recreational property this year will have little or no impact on their ability to vacation elsewhere. Forty-four per cent said buying a recreational property will make no difference to their vacation plans, while 31 per cent of respondents said recreational property ownership will make them more likely to vacation elsewhere. “This may indicate that buyers intend to use rental income from their vacation homes to finance travel abroad, or it could reflect the growing popularity of international house swapping or exchanges,” said Soper.

New Canada Mortgage and Housing Corporation regulations will require Canadians to pay a minimum 20 per cent down payment on any residential or recreational property they purchase that is not their primary home. While only one in four Canadian buyers felt the new law would reduce their desire or ability to purchase a recreational or 2nd home, the requirements certainly could make buying in the Caribbean more attractive.

 


Source:  www.canequity.com | 09/06/10

 

Posted via web from Toronto Real Estate News, Blog

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About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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