Historically, Canadians have had a long love affair with their vacation homes. In previous generations, the family cabin on the lake was the true meaning of idyllic summers. It was usually a short drive from the townhouse and often mom and kids spent most of the summer at the residence while dear dad commuted to work or just spent weekends with the family cooking summer barbecues and enjoying some quality time. Even today, many families still enjoy the legacy, as the original cabins built by their grandparents have been passed down from generation to generation.
However, a lot has changed in this new millennium with the way Canadians now view their free time and where to spend their vacations. We have been through the Snowbird era of the 70s and 80s, where we became internationally famous for our mass migration during the winter months to the south in search of warmer climates, to our current reputation as global owners spending our vacation getaways in exotic and diverse parts of the world.
The late 1970s and early 1980s saw the development of vacation timeshare properties and this concept quickly gained popularity. Perhaps the success was due to the fact that this type of property gave many people the opportunity to own a vacation home, even if only for a short period of time, usually two weeks a year, before taking the bold step of buying. of a second home. It also allowed consumers to travel further afield while on vacation, staying in their own vacation home, but without the full responsibility inherent in total ownership. Currently, the average price for this type of spare time investment starts at about $ 10,000, which is affordable for many Canadians of all ages.
There are even some recent indications that younger Canadians are buying their tourist property before their primary residence. Now there is even a new concept called Shared Quarter that provides the opportunity to own your vacation home with just three other participants so you can spend more time on vacation in your own cozy, familiar place.
Today, with the advent of low-cost airlines, a strong Canadian dollar, low-interest home equity loans, and the general wealth of Canadians, vacation home ownership is on the rise among the general population and no longer it’s only for the very rich. According to Statistics Canada, almost ten percent of Canadian households own a vacation property and of these seventy-seven percent own property within Canada and twenty-one percent outside our borders and two percent own vacation property both inside and outside of Canada. However, only 26 percent of these houses are family-owned and the majority, 52 percent, are owned by couples.
Currently, global real estate markets are considered buyer’s markets, and as listings increase, prices become more attractive to potential buyers. This factor has been reinforced by the recent mortgage crisis in the United States and appears to be a medium-term trend. Foreclosures in the United States in May 2008 increased by fifty percent compared to the previous year (as reported by the RealtyTrac foreclosure listing company) and this has piqued the curiosity of foreign investors .
The United States remains the most popular country among Canadians for real estate investments, and Florida remains the number one choice, with California and Texas nearly tied for second. According to the 2007 study by the American National Association of Realtors, Canada is among the top five countries along with Mexico, the United Kingdom, India and China, where foreigners currently invest in real estate in the United States and benefit from attractive prices. . The lure of sandy beaches and warm weather remains strong, as we are also ranked the number two foreign investor in the state of Florida. During this survey period, three percent of total US home sales went to nonresidents with a median purchase price of $ 300,000 and the primary purchase use was a vacation home. Yet nearly a third make the purchase as both a vacation home and a rental property. Foreign owners buy American properties across the country, but the South and West account for 80 percent of total sales. It’s probably safe to assume that Canadians will continue to make the United States one of their most popular locations for vacation home ownership, given current housing market conditions and proximity to their primary residence.
However, one of the emerging options for the holidays and planting Christmas roots is fast becoming in Central America, specifically in Mexico, Costa Rica and Honduras. Condo purchase prices are attractive starting at just $ 150,000 and the cost of living is much lower than at home.
The small country of Costa Rica has proclaimed itself as one of the greenest countries in the region and has therefore become a popular choice among Canadian investors, especially on the Pacific coast in the small coastal towns of Quepos. and Manuel Antonio.
Mexico continues to be a favorite for vacation with popular coastal apartment ownership in Puerto Vallarta, Puerto Plata, and Cabo San Lucas, just to name three of the hot spots. Due to proximity, Americans dominate the vacation home market in Mexico, but Canadians and Europeans follow closely. Foreigners can now enjoy home ownership through the Fedeicomiso system whereby a trustee, usually a Mexican bank, holds the title deed for the buyer who is the legal owner with the rights to sell, lease or bequeath the property to the heirs. . SOFTEC, a real estate consultancy, reports that in Mexico over the past three years there has been a sixty percent increase in investment in vacation homes. Spanish lessons are a must, but the quality of life will make the effort worthwhile.
Endless white-sand beaches, pristine forests, pristine rivers, and healing hot springs have made Honduras a relatively new vacation destination for North Americans, and recent 2004 property law changes have made foreign ownership less of a proposition. risky than a decade ago. . However, it is still very important to make sure you are working with a reputable and established local real estate agent and to make sure the prices are realistic for the local neighborhood; inquire here.
The ever popular islands of the Caribbean remain irresistible, especially among Eastern Canadians. The lure of the soft, clear blue ocean and white sandy beaches is very attractive in the middle of a harsh, cold winter, but it can also provide year-round vacation potential.
The island of Belize has a resident population of just 15,000, but nearly 20 percent of them are foreigners, including a wave of Canadians and Americans who have recently purchased vacation or retirement homes. A beach condo typically sells for between three hundred and five hundred thousand US dollars and with a major expansion at the International Airport, direct flights from Europe are rumored to start soon and an economic boom is sure to follow.
Another well-kept Caribbean secret is the small island of Curaçao, part of the Netherlands Antilles, and known for being the most Dutch of this small chain of five islands. With this European influence, it is a charming and unique getaway newly discovered by North Americans.
With a very stable government and a tourism-based economy, property prices are higher than on other Caribbean islands, but the future looks very good for continued economic growth.
Perhaps the most popular new global destination overall is South America, where the Latin experience is taking off. Europeans have known this for some time and have been investing heavily in vacation homes and apartments and more recently Canadians have discovered the advantages of the region. With a very low cost of living — a good bottle of wine for just two dollars or a T-Bone steak for a dollar at the grocery store — although the journey is a bit longer, the final rewards are much greater. In Buenos Aires you can find a studio apartment in the city for only around US $ 90,000 or a coastal property in Chile for less than US $ 150,000 or an ocean view condo in Uruguay for US $ 250,000, which makes make Latin America worth considering before prices rise. more. Surprisingly, American investors are a minority here and this may be due to the fact that only about five percent of the population speaks English and Americans tend to prefer dialogue in their mother tongue.
Although Canadians are making their mark around the world, when it comes to a vacation home, their number one choice is still close to home. Maritimers don’t want to leave the ocean and many other residents of Canada’s major cities like Montreal and Toronto can’t resist the lure of the Atlantic coast. Last year, real estate prices in this region rose an average of ten percent, with the exception of Saint John, New Brunswick, which was driven by the energy sector to more than forty percent. In western Canada, the hot spot has become Saskatchewan, which has once again experienced a 50 percent appreciation in property prices due to the booming energy sector. Timeless favorites like the Rocky Mountain and Vancouver Island ski resorts have seen an average increase of just over ten percent in value.
Travel itself may be less enjoyable than it was a few years ago, but once you find your own vacation paradise, the rewards of owning a vacation home are immeasurable. More than just a financial investment, the perfect getaway residence will prove valuable just for stress relief and relaxation in the fast-paced world we have to deal with every other day of the year.
And perhaps the most fun part is looking for your own perfect second home that meets your personal needs and that you can make your retreat while dealing with the everyday hassles of urban life. Price may be important, but peace of mind is priceless.
