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Recreational Property Market Heats Up in BC S
ummer’s here, and it’s not just the mercury that’s rising throughout BC. After a long slump, the market for recreational properties is heating up… rapidly. “This is the busiest start to a year that I’ve seen in a long, long time,” says recreational property guru Rudy Nielsen, president of Niho Land & Cattle Company and Landcor Data Corporation. The recent annual recreational property reports by Royal LePage and Re/Max both shared the same message, citing increased interest from overseas and domestic buyers because of the low Canadian dollar. The good news for buyers? Now’s the time to snag some good deals while properties are still attempting to rebound from previous lulls and interest rates remain low.
Market Rebounds “In an economic downturn, recreational properties are always the first to feel the pressure and the last to come back,” says Curt Jansen, vice president of sales and
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marketing with Skaha Hills in Penticton. He adds that sales are now so strong, Skaha Hills’ initial phase sold out in just over two months – a far cry from the predicted two and a half years. He notes the 2008 financial meltdown lured many British Columbians to invest in desert locations like Scottsdale or Phoenix when the Canadian dollar was at par and American recreational property was readily available at 40 cents on the dollar. Now, as the loonie loses ground against the US greenback and bottom-line travel costs – especially airfare – skyrocket, many property owners see a new opportunity in Canadian markets. “You’ll likely be able to sell your US property at a profit, plus you’re making 20 per cent on the dollar when you convert to Canadian funds,” says James Askew, president of rareEarth Project Marketing. “Meaning you can purchase a property somewhere like Vancouver Island or parts of the Okanagan that are still undervalued
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by 10 or 20 per cent, and often still keeping money in your pocket.” One question mark is the Alberta buyer. Don Campbell, senior analyst at the Real Estate Investment Network and one of Canada’s leading real estate investment authors, believes the combination of falling oil prices and a new provincial government will keep some Albertans sitting on the fence for now. And Nielsen says they are still coming but acknowledges they are now less of a primary market driver.
Heat Indicators: The Decision to Buy Access remains a key driver in the decision to purchase recreational property, but proximity to services and amenities is gaining strength as a major consideration. “While there will always be people who want the pure solitude of being somewhere out in the bush, the majority of buyers still want the convenience of things like a grocery store, coffee shop and somewhere to eat out,” says Campbell. “They also
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want to be able to get there in three or four hours after work on Friday – even if they’re arriving at midnight, it’s OK.” Nielsen agrees. He’s nicknamed it the “golden circle” – an informal but remarkably accurate price predictor based on proximity to the urban hubs where most recreational property buyers live. “For example, you’ll likely spend $600,000 to $700,000 for a lakefront property in Merritt – about a two-hour drive from Vancouver. If you’re willing to drive five hours to Williams Lake, you can find the same kind of property for half that amount. And in Prince George, a 12-hour drive from Vancouver, there are lots of lakefront deals to be had for around $100,000 – but you can’t spontaneously drive there for the weekend.” Want to know where the best deals in BC recreational property can be found this year? Find the extended version of this story online at REW.ca/News/Market
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