Work-from-home policies and changing lifestyle needs have sent many homebuyers venturing into Canada’s cottage countries this past year. This move has certainly contributed to the significant increase in home prices.
As the transition from an urban or suburban home to a recreational one can involve many new elements of ownership, research shows that some important property considerations are being forgotten about by first-time buyers.
According to real estate agent survey insights published this week by Royal LePage, 33.1 percent of respondents said that checking the quality of a property’s cell phone reception and internet connection is the number-one consideration first-time recreational property purchasers tend to take for granted or forget about.
Between June 15th and June 18th, the online Royal LePage First-time Recreational Purchase Survey polled 277 Royal LePage real estate advisors from across the country to learn more about the homebuying experience in recreational markets. The survey ranked the top 10 factors that recreational property buyers tend to gloss over.
About a third of agents said that ensuring the quality of cell phone reception and internet both in and around the property was a top factor that first-time recreational property purchasers frequently overlooked.
“Most people buy a cottage because they want a place to escape from their busy lives; somewhere peaceful and serene. While privacy is important, you want to make sure you’re not in an area so remote that you can’t make a phone call in an emergency,” said Pauline Aunger, a real estate broker with Royal LePage Advantage Real Estate in Smiths Falls, Ontario, in the report.
“Today more than ever, the ability to stay connected online is so important; be it for remote work, connecting with family and friends, or catching up on the latest Netflix series,” she added.
Understanding that owning a cottage on the water does not always mean waterfront ownership ranked in second place on the list at 15.7 percent. This was closely followed by ignoring considerations around water sources that are used in the area, according to 12.9 percent of those surveyed. The report noted that inquiring about whether your recreational home’s water comes from a well or a lake is important to know when it comes to usability, quality and treatment expenses.
“In a major city or a suburban neighbourhood, we don’t think about things like how to maintain a property in winter, or whether the water from the tap is drinkable,” said Aunger in the report. “When searching for a recreational property, these things can make a huge difference.”
In fourth place, 8.5 percent of respondents noted that knowledge of rules around long- and short-term rentals, such as Airbnb, was another vital consideration that is often missed. The 10-item list also ranked considerations around home seasonality (8.1 percent), sewage systems (7.3 percent), municipal regulations (5.6 percent), garage removal (4.8 percent), motorized vehicle regulations (2.4 percent) and snow removal (1.6 percent).
With the COVID-19 pandemic forcing many Canadians to stay put and rework their vacation plans, the Royal LePage report explained that recreational markets country-wide have seen “a significant spike in activity.” This resulted in a 16 percent year-over-year increase in the aggregate price of a recreational home in 2020. Royal LePage said that it is forecasting a 15 percent annual increase for Canadian recreational property prices in 2021.