Fully 95 per cent of recreational real estate experts across Canada agree that foreign nationals account for only 10 per cent or less of cottage purchases in the country, according to the latest survey by Royal LePage.
In its June 23 press release, the real estate franchiser said that contrary to the trends in other residential real estate types in Canada’s most overheated markets, foreign buyers represented a relatively small part of transactions in the recreational property segment.
According to the survey respondents, most of these buyers hail from North America (79 per cent), particularly from the United States (64 per cent).
“We Canadians enjoy a wonderful recreational real estate reciprocity with our American cousins. Like flocks of happy geese, we fly south in the winter, and in return, Americans head to the beautiful north country when summer arrives. Canadians have been, for years, the principal foreign buyers of sunbelt property in states like Florida and Arizona, while a lower Canadian dollar has encouraged a new wave of U.S. buyers here,” Royal LePage president and CEO Phil Soper said in the news release.
The poll results revealed that Canada’s most attractive features among foreigners are quality of life (30 per cent of respondents), geography (27 per cent), and the low loonie (27 per cent).
“Canada’s extended low interest rate environment has clearly provided buyers with the confidence they need to invest in a cottage or cabin,” Soper said.
“In contrast to urban home purchase decisions, buying a property on a lakefront or mountainside is much less about interest rates, and more about enhancing lifestyle. Cash savings trump mortgage financing when it comes to how people are acquiring recreational property,” he explained.
88 per cent of the real estate advisors surveyed said that buyers of Canada’s cottages cited vacation and lifestyle changes as their reasons for purchasing, while 65 per cent noted that their clients are preparing for retirement.
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