Canadians have historically enjoyed a very long love affair with their vacation homes. In previous generations, the family cabin by the lake was the true meaning of idyllic summers. It was usually a short drive from the townhouse, and often Mom and the kids would spend most of the summer at the residence, while dear Dad commuted to work every day or just spent weekends. week 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 how Canadians now view their free time and where to spend their vacations. We have gone from the Snowbird era of the 1970s and 1980s, in which we gained international renown for our mass migration during the winter months in search of warmer climates, to our current reputation as global homeowners. who spend their vacations in exotic and diverse places in the world.
The late 1970s and early 1980s saw the development of timeshare vacation ownership and this concept quickly gained popularity. Perhaps the success was due to the fact that this type of ownership provided many people with the opportunity to own a vacation home, even if only for a short period of time (usually two weeks a year) before to take the bold step of buying it outright. purchase of a second home. It also allowed consumers to travel further afield for their vacations, staying in their own vacation home but without the full liability inherent in full ownership. Currently, the average price for this type of leisure time investment starts at around $10,000, which is within the reach of many Canadians of all ages.
There are even some recent signs that younger Canadians are buying their tourist property before their primary residence. Now there’s even a new concept called a shared room that provides the opportunity to own your vacation home with just three other people sharing so you can spend more vacation time 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, tourist home ownership is booming among the general population and It’s not just for the very rich anymore. According to Statistics Canada, nearly ten percent of Canadian households own a vacation home and of these, seventy-seven percent own a property within Canada and twenty-one percent outside our borders, with two percent owning a vacation property both inside and outside of Canada. However, only twenty-six percent of these homes are owned by families and the majority, fifty-two percent, are owned by couples.
Today, the global real estate markets are considered buyers’ markets, and as listings increase, prices become more attractive to prospective buyers. This factor has been boosted by the recent mortgage crisis in the United States and seems to be a medium-term trend. Foreclosures in the United States in May 2008 were up fifty percent compared to the previous year (as reported by foreclosure listing company RealtyTrac), and this has further stimulated the curiosity of foreign investors.
The United States remains the most popular country for Canadians to invest in real estate and Florida remains the number one choice with California and Texas nearly tied for second place. According to the 2007 study by the American National Association of Realtors, Canada is ranked in the top five countries along with Mexico, the United Kingdom, India and China where foreigners are currently investing in United States real estate and taking advantage of rising prices. attractive. 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 were to nonresidents with a median purchase price of $300,000 and the primary use of the purchase was for a vacation home. However, almost a third make the purchase as a vacation home and as a rental property. Foreign homeowners buy American properties across the country, but the South and West account for eighty percent of total sales. It is 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 vacationing and planting Christmas roots is fast becoming Central America, specifically Mexico, Costa Rica and Honduras. Condo purchase prices are attractive starting at just $150,000 and the cost of living is much lower than home.
The small country of Costa Rica has positioned 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 ManuelAntonio.
Mexico continues to be a favorite choice for vacations with popular beachside 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 are close behind. Foreigners can now enjoy home ownership through the Fedeicomiso system in which a trustee, usually a Mexican bank, holds the property deed for the buyer, who is the legal owner with the rights to sell, lease or bequeath property to heirs. . SOFTEC, a real estate consulting firm, reports that in Mexico over the last three years there has been a sixty percent increase in investments in vacation homes. Spanish lessons are a must, but the quality of life will make the effort worthwhile.
Endless white sand beaches, pristine forests, crystal clear rivers and healing hot springs have made Honduras a relatively new vacation destination for North Americans and recent changes in 2004 to property laws have made foreign ownership be a less risky proposition than it was a decade ago. . However, it is still very important to ensure that you are working with a reputable and established local real estate agent and to ensure that the prices are realistic for the local neighborhood; research here.
The ever-popular Caribbean islands remain irresistible, especially among Eastern Canadians. The lure of the clear, soft blue ocean and white sand beaches is very appealing in the midst of a harsh, cold winter, but can also provide year-round vacation potential.
The island of Belize has a resident population of only about fifteen thousand, but almost twenty percent are foreigners, including a wave of Canadians and Americans who recently bought homes for vacations or retirement. A condominium on the beach usually sells for between US$300,000 and US$500,000 and with the huge expansion of the International Airport, it is widely rumored that direct flights from Europe will soon begin and an economic boom is sure to follow.
Another well-kept Caribbean secret is the small island of Curacao, part of the Netherlands Antilles, and known to be the most Dutch of this small chain of five islands. With this European influence, it’s a charming and unique getaway and has just been discovered by North Americans.
With a very stable government and a tourism-based economy, real estate prices are higher than on other Caribbean islands, but the future looks very bright 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 only two dollars or a T-Bone steak for a dollar at the supermarket — although the trip is a little longer, the final rewards are much greater. In Buenos Aires you can find a studio in the city for around US$90,000 or a seaside property in Chile for less than US$150,000 or an ocean view condo in Uruguay for US$250,000, making Latin America worth considering. before prices go even higher. Surprisingly, American investors are in the 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 to converse in their mother tongue.
Although Canadians are making their mark all over the world, when it comes to a vacation home, their number one choice is still close to home. Boaters 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 coastline. Last year, house prices in this region increased by an average of ten percent, with the exception of Saint John, New Brunswick, which was boosted by the energy sector by more than forty percent. In western Canada, the hot spot has become Saskatchewan, which has again experienced a fifty percent appreciation in house prices due to a booming energy sector. Perennial favorites like Rocky Mountain ski resorts and Vancouver Island have seen an average increase of just over ten percent in value.
Traveling itself may be less enjoyable than it was a few years ago, but once you find your own vacation paradise, the rewards of vacation home ownership are immeasurable. More than just a financial investment, the perfect getaway residence will prove worthwhile just to relieve stress and relax in the fast-paced world we have to deal with every other day of the year.
And perhaps the most fun part is finding your own perfect second home that meets your personal needs and where you can make your retirement while dealing with the daily hassles of city life. Price may be important, but peace of mind is priceless.