More Canadians plan to rent out their cottages or cabins to help finance ownership

More Canadians plan to rent out their cottages or cabins to help finance ownership

Press Release:

2016 RE/MAX Recreational Property Report

As real estate prices rise, many Canadians are looking for alternative ways to finance their dreams of cottage and cabin ownership. In a recent survey of RE/MAX agents and brokers, more than half reported seeing an increase in buyers who planned to rent out their property full- or part-time. In a separate survey of Canadians, conducted by Leger, nearly 60 per cent agreed that due to the emergence of popular, user-driven vacation rental websites, it is easier for an owner to rent out an investment property today versus five years ago. The same survey found that millennials are most likely to have spent time at a cottage or cabin in the last year.

“Young Canadians are sustaining demand for access to recreational properties,” said Pamela Alexander, CEO and Regional Owner,North America, RE/MAX INTEGRA. “This provides an opportunity for buyers to finance their second homes, and we are seeing this most notably in high demand areas such as Grand Bend, Ontario, Tofino, B.C., and Quebec’s Eastern Townships.”

In most of the regions that reported an increase in buyers planning to rent out their properties, demand is driven primarily by families and retirees, rather than investors. Retirees were reported as being key drivers of demand in 83 per cent of regions surveyed, and 53 per cent of regions reported an increase in retiree buyers this year compared to last year.

“As the large demographic of Baby Boomers retires, we are seeing sellers who benefitted from significant price appreciation in cities like Vancouver and Toronto putting that equity into recreational markets, which is causing prices to increase in those regions,” saidElton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Some buyers who may still be five or 10 years away from retirement are taking the opportunity to enter those markets now, renting out their property until they are ready to retire.”

This effect has been especially pronounced in British Columbia, where significant price increases in the Lower Mainland are encouraging buyers to invest in regions such as the Okanagan and the Gulf Islands.

Low dollar boosting Canadian recreational regions

The low Canadian dollar is having a positive effect on Canada’s recreational property markets. Canadians, mainly Baby Boomers, who bought properties in the U.S. when U.S. real estate prices were comparably low are selling them at a profit and investing in Canadian recreational markets. The low dollar is also encouraging Canadians to vacation within the country rather than going abroad, putting their money into vacation rentals closer to home.

Some regions, particularly established recreational destinations with international reputations such as Whistler, the Muskokas and Mont Tremblant, are seeing foreign buyers, primarily from the U.S., return to those markets. Cape Breton Island, which recently made international news when a website “Cape Breton If Donald Trump Wins” gained the attention of high-profile news media, has seen increased interest from prospective U.S. buyers this year due to the publicity boost, combined with favourable exchange rates.

Canadians looking for a little peace and quiet

In a survey of Canadians, 94 per cent said that when thinking about spending a weekend at a cottage or cabin, a quiet atmosphere was rated as an important feature, followed closely by privacy (91%). Peace and quiet ranked above sandy beaches (75%), access to water (75%) and outdoor activities (74%). This was true for Canadians in all age groups and across all regions.

When considering purchasing a recreational property, it is important for buyers to take into account their personal priorities and preferences, as well as factors such as location, traffic and amenities. For example, buyers who value quiet and privacy over water access may find a short walk or drive to the beach is a better option than a waterfront property. An experienced real estate agent with local expertise can help prospective buyers know all the options within their budget and make an informed choice.

For the full 2016 RE/MAX Recreational Property Report including data and pricing chart, click here.

2015/2016 and 2014/2015 Median Prices (Large Markets)

Region

Housing Type

2014/2015 Median Price

2015/2016 Median Price

Year-over-year (%)

Ucluelet

Non-waterfront

$300,000

$350,000

16.67%

Squamish

Non-waterfront

$415,000

$499,000

20.24%

Whistler

Non-waterfront

$550,000

$440,000

-20.00%*

Whistler

Ski-in

$398,000

$375,000

-5.78%*

100 Mile House

Waterfront

$295,000

$345,000

16.95%

100 Mile House

Non-waterfront

$195,000

$216,000

10.77%

South Okanagan

Waterfront

$345,000

$382,283

10.81%

South Okanagan

Non-waterfront

$409,000

$426,000

4.16%

Canmore

Non-waterfront

$511,000

$533,090

4.32%

Qu’Appelle Valley

Non-waterfront

$209,000

$211,000

0.96%

Parry Sound and Georgian Bay

Waterfront

$380,000

$400,000

5.26%

Parry Sound and Georgian Bay

Non-waterfront

$230,000

$260,000

13.04%

Grand Bend area

Non-waterfront

$247,000

$375,000

51.82%

Collingwood

Waterfront

$552,500

$575,000

4.07%

Orillia

Waterfront

$350,000

$365,000

4.29%

Orillia

Non-waterfront

$260,000

$280,000

7.69%

Peterborough and Kawarthas (East)

Waterfront

$352,500

$385,000

9.22%

Prince Edward Island

Waterfront

$206,357

$199,832

-3.16%

*Median price decrease in Whistler attributed to increased sales of fractional ownership properties. Average price for all property types in Whistler increased.

 

Key Findings from 2016 RE/MAX Recreational Property Report Omnibus Survey

  • 81% of Canadians have spent time at a cottage or cabin
    • BC: 78%
    • Alberta: 70%
    • Manitoba/Saskatchewan: 88%
    • Ontario: 86%
    • Quebec: 74%
    • Atlantic: 89%
  • Millennials (18-34) are most likely to have spent time at a cottage or cabin in the past year, compared with Canadians in other age groups
  • 58% of Canadians agree that online vacation rental services have made it easier to rent out an investment property versus five years ago
  • More than half of Canadians agree that a recreational property is a good financial investment
  • Features and amenities rated most important when thinking of a weekend at a cottage or cabin:
    • Canadians:
  1. Quiet atmosphere: 94%
  2. Privacy: 91%
  3. Sandy beaches: 75%
  4. Water access: 75%
    • British Columbians:
  1. Privacy: 89%
  2. Quiet atmosphere: 88%
  3. Sandy beaches: 75%
  4. Outdoor activities: 75%
    • Albertans:
  1. Quiet atmosphere: 96%
  2. Privacy: 94%
  3. Sandy beaches: 81%
  4. Outdoor activities: 77%
    • Manitobans/Saskatchewanians:
  1. Quiet atmosphere: 91%
  2. Privacy: 87%
  3. Swimming: 82%
  4. Sandy beaches: 81%
    • Ontarians:
  1. Quiet atmosphere: 93%
  2. Privacy: 92%
  3. Swimming: 80%
  4. Sandy beaches: 79%
    • Quebecers:
  1. Quiet atmosphere: 97%
  2. Privacy: 91%
  3. Water access: 77%
  4. Sandy beaches: 68%
    • Atlantic Canadians:
  1. Quiet atmosphere: 97%
  2. Privacy: 89%
  3. Outdoor activities: 76%
  4. Sandy beaches: 64%

 

SOURCE RE/MAX OntarioAtlantic Canada For more information about RE/MAX INTEGRA, visit www.remaxintegra.com.

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.

 

2016 RE/MAX Recreational Property Broker and Agent Survey 

The 2016 RE/MAX Recreational Property Broker and Agent Survey measures year-over-year median prices, listings and sales for waterfront, non-waterfront, ski-in and water access housing types in key recreational property regions. In addition to providing data from local boards and brokerages, brokers and agents are surveyed on trends, local development and features.

About Leger 

Leger is the largest Canadian-owned full-service market research firm. An online survey of 1576 Canadians was conducted between May 24 and May 26, 2016, using LegerWeb. Leger’s online panel has more than 475,000 members nationally – with between 10,000 and 20,000 new members added each month, and has a retention rate of 90%. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.

OPP Issues Another Warning About the Canada Revenue Scam

opp logo270The Meaford Independent

The Ontario Provincial Police (OPP) has been regularly warning the public with regards to the various scams that seem to be reoccurring throughout the province on a daily basis. With the date for filing income tax returns behind us, and some Ontarians having recently received a tax return, one scam in particular that is continuing to catch many off-guard is the Canada Revenue Agency (CRA) Scam.

In the CRA scam, criminals will attempt to extort money from their victims by telephone, mail, text message or email, after they have received a fraudulent communication that claims to be from the Canada Revenue Agency requesting personal information such as a social insurance number, credit card number, bank account number, or passport number.

Fraudsters impersonate the real CRA and are either phishing for your identification or asking that outstanding taxes be paid by a money service business or by pre-paid debit/credit cards. They may insist that the receiver of the call provide personal information so that they can receive a refund or a benefit payment. Cases of fraudulent communication could also involve threatening or coercive language to scare individuals into paying fictitious debt to the CRA. Other communications urge taxpayers to visit a fake CRA website where the taxpayer is then asked to verify their identity by entering personal information. These are scams and taxpayers should never respond to these fraudulent communications nor click on any of the links provided. Calls such as these are even being received on personal and work related telecommunications devices.

Here are some warning signs:

  • Urgency– The scammer always makes the request sound very urgent, which may cause the victim to not verify the story.
  • Fear– The scammer plays on the victim’s emotions by generating a sense of fear.
  • Request for Money Transfer– Money is usually requested to be sent by a money transfer company such as Money Gram, Western Union or even through your own financial institution.

To avoid becoming a victim, police advise you to first check with another family member or trusted friend to verify the information BEFORE sending money or providing credit card information by phone or e-mail.

If you or someone you know suspect they’ve been a victim of the Emergency Scam or someone posing as a Canada Revenue Agency official, hang up and contact your local police service. You can also file a complaint through the Canadian Anti-Fraud Centre, Crime Stoppers at 1-800-222-8477 (TIPS), or online at https://www.tipsubmit.com/start.htm

National Bank of Canada raises dividend despite 48% profit drop on soured energy loans

National Bank of Canada raises dividend despite 48% profit drop on soured energy loans

National Bank of Canada said fiscal second-quarter profit fell 48 per cent after setting aside more money to cover soured energy loans. The lender raised its quarterly dividend 1.9 per cent to 55 cents a share.

Net income for the period ended April 30 dropped to $210 million, or 52 cents a share, from $404 million, or $1.13, a year earlier, the Montreal-based lender said Wednesday in a statement. Earnings excluding some items were 60 cents a share, matching the average estimate of eight analysts surveyed by Bloomberg.

National Bank, the country’s sixth-biggest lender, recorded $183 million in pretax provisions for oil-and-gas industry loans in the quarter, which it pre-announced on May 5. Personal and commercial banking unit had a loss, while wealth management profit declined. Capital markets earnings rose.

“The credit quality of the overall loan portfolio, excluding the oil and gas producer and service company loan portfolio, remains within expectations,” Chief Executive Officer Louis Vachon said in the statement.

Bloomberg.com

Going back to Fort McMurray? Here’s what you need to know

From safety to home insurance, here’s the latest on what is expected as residents prepare to return home

Excerptreted article via CBC News

Some of the more than 80,000 Fort McMurray residents who fled their city in early May will begin the trek back home starting Wednesday.

The following re-entry schedule is based upon safety conditions being met:

Re-entry schedule

When it’s safe to go back

Healthy adults will be permitted to return to Fort McMurray once the Air Quality Health Index is six or less, and weather conditions are favourable.

At-risk individuals are asked to stay away until air quality is three or less. This includes:

  • People with pre-existing respiratory or cardiovascular conditions.
  • Pregnant women.
  • Children under the age of seven.
  • Seniors over the age of 65.

The province has also asked people with the following medical conditions to delay return until the Northern Lights Regional Health Centre is up and running at full capacity:

  • A chronic or acute medical condition, such as asthma.
  • Anyone requiring regular primary care, specialist care, laboratory or diagnostic services.
  • Anyone requiring counselling or mental health services.
  • Anyone more than 36 weeks pregnant or having a high-risk pregnancy.
  • Anyone receiving cancer treatment, dialysis or other specialized medical services.
  • Anyone requiring home care, home oxygen or home health supports.
  • Anyone recently discharged from hospital or who has had a transplant.

If you’ve got a health concern not included in the above list, please consult with a physician before returning to Fort McMurray.

What to bring with you:

  • A 14-day supply of water and food: While grocery stores will be open, stock may be limited. With a boil advisory in effect, bringing your own drinking water is essential.
  • A small fridge or freezer: Your own fridge and freezer may not be useable and should not be relied on to store cold goods right away.
  • Any necessary prescription medications: Pharmacies may not be fully stocked.
  • Rubber boots, long pants and long-sleeved shirts: Try to limit your exposure to potential hazards when you first re-enter your home.
  • An N-95 or comparable dust mask: The mask should be worn to reduce potential smoke exposure. These can be purchased at hardware stores, and one per household will be provided in the Canadian Red Cross cleaning kit.
  • A new filter to replace the one in your home furnace.

More about water safety

Alberta Health Services has issued a boil water advisory for the Regional Municipality of Wood Buffalo as a precautionary measure.

Until the advisory is lifted, use only bottled water or water that has been boiled for a full minute before:

  • Drinking.
  • Brushing teeth.
  • Cleaning raw foods.
  • Preparing infant formula or juices.

Water used for bathing or washing clothes does not need to be boiled. To wash hands, use soap and water followed by an alcohol-based hand sanitizer containing more than 60 per cent alcohol after drying your hands.

What NOT to do

  • Do not allow children or pets to play in fire-damaged areas.
  • Do not try to use electrical appliances or power in your home that may have come in contact with fire, water or fire retardant.
  • Do not start cleaning or throwing things away until you call your insurance company.

Entering your home

  • Before entering, read: Returning to Your Home, published by Alberta Health Services.
  • A pet reunification team may have changed your lock. Call animal at 780-788-4200 for new keys.
  • Check for hazards before going inside your home.
  • Wear an N-95 mask, long pants and sleeves and rubber boots.
  • Leave immediately if you smell natural gas.
  • You can get a free cleanup kit from the Canadian Red Cross at any information centre.
  • Dispose of any perishable foods that are not in sealed packages or cans.
  • Dispose of jarred food.
  • When in doubt, throw it out.
  • There will be designated landfill drop-offs for fridges and freezers.
  • Garbage collection resumes June 16.
  • Call 780-310-4455 to determine if your vehicle is being stored and how to get it back.

Returning to work

  • Apply for EI as soon as possible, even if you don’t have a record of employment.
  • Apply by phone: 1-800-206-7218. Choose option 6.
  • Apply online.
  • Temporary foreign workers should call 1-877-944-9955.

For more information

  • Regional Municipality of Wood Buffalo: Check the municipality’s Twitter, Facebook and website for updates.
  • Re-entry information bookletRead the full document here.
  • Mental health help line: Call 1-877-303-2642 or Health Link at 811 if you need support.
  • Canadian Red Cross: Located at all Fort McMurray information centres.
  • Salvation Army: Located at Keyano/Westwood High School.
  • Billy Graham Rapid Response Team: Located at Fort City Church, or call 780-880-3530.
  • Samaritan’s Purse: Located at Fort City Church, or call 1-866-628-6565.
  • Canadian Global Response: 780-880-3667.
  • ATCO Gas: 780-310-5678.
Re-entry schedule
Canadians spending money close to home this summer

Canadians spending money close to home this summer

With the first long weekend of the season coming up, a recent survey by Tangerine found that home may be the place to be this summer. The survey found that the vast majority of Canadians (81 per cent) plan to spend the long weekend at home this year, and two-thirds (69 per cent) say the value of the Canadian dollar is impacting their travel plans for the rest of the summer.

For the remainder of the summer months, a quarter of Canadians surveyed said they won’t be getting away at all, and 58 per cent said they’ll travel within Canada or their home province. Only nine per cent will travel to the US, and another eight per cent will travel internationally. More than one quarter (27 per cent) of Canadians said they changed their plans and no longer plan to travel to the US this summer because of the Canadian dollar.

While it seems that many people are cutting back on US travel plans this year, those with vacation plans are not afraid to spend money. Of those planning a trip within Canada this summer, 55 per cent will spend more than $1,000, and of those planning a trip to the US, 74 per cent will spend more than $1,000. Furthermore, 59 per cent admitted that they typically overspend what they budget for vacation, and many (29 per cent) use credit and debt to fund their vacation and pay it back later.

“Vacations can be a slippery slope when it comes to spending money, since you’re out of your regular routine and already opening your wallet for many expenses,” says Silvio Stroescu, Vice President of Deposits and Investments at Tangerine. “Having access to an interactive banking app with alerts can be helpful for money management while away, but, of course, deferring a vacation until you can afford it is the best option and appears to be what many Canadians are doing this year.”

A Canada-cation
When taking a vacation in their own country, Canadians are most likely to prefer an extended cottage trip to the lake and a good book (44%), followed by a busy-city adventure (23%). If they could take a vacation anywhere in Canada, one-third (33%) of Canadians would choose the east coast/Atlantic Canada as their destination of choice, followed by British Columbia (25%), Ontario (16%), and Quebec(16%).

The millennial compromise
When asked about splurges and compromises while on summer vacations, the millennial age group was the most likely to splurge, admitting they’re likely to overspend on food and beverage (63%), outdoor activities (43%), shopping/souvenirs (35%), and tickets for entertainment (25%) when travelling. But some millennials may be splurging in some areas because they’re saving on other expenses. Millennials were the most willing to share a bed or hotel room (35%), and take multiple connector flights (31%). Meanwhile, 18 per cent said they’ll travel on their birthday to take advantage of birthday freebies, or during non-peak times (70%).

“Whether staying with friends at an Airbnb® or hostel, or just hitting the road in your car, there are many ways to ensure you stay within your budget while you travel,” says Cait Flanders, author of the personal finance blog, Blonde on a Budget®. “My favourite way to save on travel is taking a ‘staycation’ and exploring areas close to home, which can be an eye-opening experience and cost much less.Canada is one of the most beautiful places in the world and we should all spend more time exploring it.”

Survey Methodology
From April 20 to 21, 2016, an online survey was conducted among 1,515 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.5%, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region (and in Quebec, language) Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.

About Tangerine
Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With nearly 2 million Clients and close to $38 billionin total assets, we are Canada’s leading direct bank. Tangerine offers banking that is flexible and accessible, products and services that are innovative, fair fees, and award-winning Client service. From no-fee daily chequing and high-interest savings accounts, a Credit Card, GICs, RSPs, TFSAs, mortgages and mutual funds, Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and Mobile Banking app to our Café locations, Pop-Up locations and 24/7 Contact Centres. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates independently as a wholly-owned subsidiary.

More information is available at tangerine.ca

People could be allowed back to fire ravaged Fort McMurray as early as June 1

The Alberta government says people from the fire-ravaged city of Fort McMurray could start going home starting June 1 if conditions are safe, but warned there will only be basic services and a partially open hospital.

“Remember, many hazards remain in Fort McMurray,” Premier Rachel Notley said Wednesday.

“We need to address all of them before it is safe for residents to begin to return.”

Notley said the re-entry will be done in stages over two weeks. The city will not be suitable for everyone, including people with breathing problems, late-term pregnant women and those undergoing cancer treatment.

“We anticipate that many people will not return as early as June 1,” she said.

Five safety conditions must be met, including that wildfire is no longer an imminent threat and the air is safe to breathe. Basic emergency, medical and other services such as electricity and natural gas must also be available.

Notley warned that a boil-water advisory is likely to remain in place until the end of June and that people returning should bring with them what they need, including medications and groceries.

The hospital is scheduled to be fully operational by June 15.

In the meantime, the province announced a new, interactive online map application that provides detailed new images of fire-damaged areas. It includes high-resolution images from multiple angles to give residents a clearer idea of which homes have been lost and damaged.

However, Municipal Affairs Minister Danielle Larviee warned evacuees to approach viewing the images with caution.

“I’ve seen the devastating effects a fire has on a community and I know how difficult it can be to view those images,” she said. “I urge affected residents to seek out the emotional and mental-health supports they need.”

She said the imagery may provide enough detail to assist property owners with insurance claims, eligibility funding and other recovery actions.

More than 80,000 people fled the city on May 3 due to the wildfire that continues to burn in northeastern Alberta. The fire destroyed more than 2,400 buildings, but firefighters managed to save almost 90 per cent of the city.

The wildfire continued to burn out of control Wednesday and had grown in size to more than 4,200 square kilometres.

The flames spread toward Highway 63 north of Fort McMurray the major road in the area but did not cross it. Notley said she was not aware of any further damage to oilsands industry work camps.

One facility was destroyed Tuesday after 8,000 workers were evacuated from several camps in the area.

Erin Peach works at a Shell facility that has continued operations throughout the fire, and has been flying in and out of the region to work her shifts, staying with her fiance at a hotel south of Edmonton when she’s off.

She was relieved to hear she might soon be able to settle back into more of a routine, saying they’ve already found a place to rent in Fort McMurray.

“I just want to get back to normal,” said Peach. “f I’ve got to boil my water and sleep in my car, I don’t care. I just want to get back to Fort McMurray.”

Manny Eshete, who works for a company that tests soil and concrete, was unsure about rushing back. He said his downtown apartment was untouched by the fire but he wants to be more comfortable in the community _ not boiling water _ when he returns.

Opposition Wildrose Leader Brian Jean, who represents Fort McMurray in the legislature and lost his home in the fire, said residents have been anxiously waiting for information on when they can go home so that they can feel like their lives are moving forward.

Pausing to choke back tears, Jean said his once beautiful city will flower again.

“We will rebuild our city and it will be better than ever,” Jean said. “I will have my tool belt on and my shovel in my hand and we will clean it up and rebuild it.”

Melissa Blake, the mayor of the Regional Municipality of Wood Buffalo which encompasses the city of Fort McMurray, praised the Alberta government for the plan.

She warned residents that it won’t be the same community they left and suggested people wait a little longer before going home if they require more services.

Blake also asked residents to keep in mind that the city will bounce back over time.

“I beg you not to put yourself in any kind of risk or peril, to think about again what you’re returning to is not being what you’ve seen before,” she said.

“Envisage and imagine with me what we will be one year from now, five years from now, ten years from now, because that’s the journey that council will be on now.”

Wildfire officials were hopeful about a weather forecast that said some rain could fall in the parched area Thursday and Friday.

“We are all crossing our fingers that that happens,” Notley said.

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