And owners want to clear the mortgages on recreational properties post-haste
Marty Hope
Sun
One out of every four Canadian adults would like to purchase a vacation property while one in seven already have a place for a weekend retreat or retirement property, the results of survey by Angus Reid Strategies suggests.
Canadians held $481 billion in real estate in 2005 other than their principal residences, a report from Invis brokerage says, almost double the $266 billion held just seven years earlier.
“Recreational properties, for many Canadians, are about having a place to get away from it all, enjoy time with friends and family, and create memories,” says Stan Falkowski, president of Mortgage Intelligence.
“This is particularly true of baby boomers.”
Conducted in May, the Angus Reid survey of 1,046 adult Canadians found 41 per cent were more than 55 years old, with 47 per cent ages 35 to 54 indicating they would like to purchase a recreational property.
“But it’s the baby boomer demographic that is increasingly splitting their time between work and home in the city, while focusing on activities they enjoy when spending time at their vacation property,” Falkowski says.
While they have every intention of enjoying their property, owners also want to be able to pay off the property quickly. Fifty-four per cent of Canadians would like to clear the mortgage from the table in 15 years or less. Falkowski says this is particularly true of Canadians 55 or older, with 83 per cent of them favouring this strategy.
The survey found that 69 per cent of putative Alberta purchasers are prepared to put down from 11 to 20 per cent of the purchase price as a down payment.
Comparable percentages include: B.C. and the Atlantic region, 54; Manitoba and Saskatchewan, 45; and Quebec, 40.
“Canadians . . . are always interested in getting rid of the mortgage as quickly as possible, so for many vacation property owners, paying down the mortgage quickly is about equity,” says Falkowski.
