Dream and a Half

By Jacquelyn Francis

For a new wave of homeowners the cottage of their childhood or perhaps a winter home on the slopes seems a dream greater than even the prospect of owning a house. As for those hitting their retirement years, moving into, let's say, their own year-round cottage or buying an out-of-town property might be fraught with concerns as well. Perhaps physical strength isn't what it used to be. Perhaps being closer to a new generation of loved ones is as crucial to health as the need for peace and quiet.

There are many reasons why people seek out a recreational property and if having one is your dream, experts say it's important to think big picture, start planning now, and consult a financial planner.

Always remember, a getaway is different for every person; for some it's a snowboarding trip that can keep a young family content, for others a golf retreat down south, and for others a waterfront property in Prince Edward Island. Regardless of your vision, if you have one, an increasing number of developers are tapping into the vacation retreat concept.

"We have a huge variety," says Kristen Beachli, of the individuals attracted to Lora Bay, a master planned community being built near Thornbury, Ontario. Located at the foothills of Collingwood, this elaborate, bucolic playground will be rolled out over the next 20 years in various phases. The linchpin of this community will be the Raven Golf Club at Lora Bay, and with The Georgian

Trail running through the property, Lora Bay seems poised to become a place for living as much as is it for relaxing.

"A lot of people who are downsizing out of Toronto are also trying to consider what to do with their secondary properties, maybe they have something in cottage country, but maybe they are thinking of amalgamating here," she says.

"And then there is the slightly younger set who have been growing up and coming up here for weekends to ski. They want their kids to have the same."

Individuals aged 55 and over, who live outside Canada 30 days a year or more are most affectionately knows as 'snowbirds'. It's been estimated that as recently as 2001, more than 400,000 Canadians over the age of 55 were travelling outside the country. A 13 per cent increase over the previous year and demographics indicate that with the first wave of the baby boom poised to retire, those numbers are going to rise. From a vacation property perspective we can expect in the coming years a spike in mature individuals looking for newer homes that cater to their leisure interests. Owning properties in sunny locations has always been an attractive option for the winter-weary Canadian, some people prefer the sense of community within a familiar location, not to mention the ability to pass an asset of this nature onto their heirs. There is also the opportunity to accrue a rental income from any recreational property, however, it's important to explore the tax implications of doing so.

As for those on the other end of that age spectrum, it helps to do your homework now, since newer projects such as Lora Bay or skiing communities can allow individuals to take advantage of pre-construction prices.

"It?s not necessarily snapping something up right away," says Beachli. "But start looking and spending the time. Being up here really helps. Spending some time on the weekends to look up here, to come up and meet the individuals living here."

It's good to note that just getting into the market can help finance your recreational property. But it's important to get the ball rolling on that first mortgage. "Build up equity in your home first and then you can start amassing the down payment for your vacation property," says John Panagakos, mortgage specialist with The Mortgage Centre. "It's important to build up equity in your primary residence first."

"Most people when they retire want to be mortgage free. Think about how much you make and how much you can put away," says Panagakos.

"Finance the vacation property as much as possible and keep your home (mortgage) as low as possible. Put as much equity into your home."

Dreaming of your own recreational property?

Pick a location that suits your interests

Spend time in the area or rent a condo/cottage there for a period of time before you buy

Would you consider pooling your resources with a family member for a down payment?

Work hard at building equity in your primary residence

Are there any new communities being built in the particular area you are interested?

Contact a builder that specializes in recreational properties to find out where such housing is being built