Despite the fact that a second home requires a higher down payment, almost half of Canadians are still considering buying a recreational property according to a nationwide survey of Canadian attitudes towards recreational property ownership conducted by Angus Reid and commissioned by Royal LePage Real Estate Services.
Lifestyle is the number one reason cited from buyers who want recreational property. And the new Canada Mortgage and Housing Corporation regulations don’t seem to be a barrier. The changes will require Canadians to pay a minimum 20 per cent down payment on any residential or recreational property they purchase that is not their primary home.
But Canadians are concerned about tax increases that might affect their ability to buy vacation properties. Forty-nine per cent of respondents say they are concerned about new taxation rules such as the HST on new-construction homes while 46 per cent express concern about increasing property taxes.
“Canadians are generally confident about buying recreational properties because they see a pay off in terms of improved quality of life,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The survey results show that tightening of lending requirements for second homes, coupled with an increase in taxes and expectations of higher interest rates, may have a dampening effect on the recreational property market. However, there continues to be strong demand for second homes, and Canadians appear prepared to make significant investments in order to enjoy their leisure time.”