There’s something for everyone
The definition of a recreation property is changing as more types become available
For The Calgary Herald
Published: Thursday, May 15, 2008
Thirty years ago the term recreation property usually meant a summer cabin on a lake, or perhaps a mountainside hideaway that served as a home base for ski vacations.
But times have changed. The definition of what is recreation property has broadened over the years. Everything from ranches to RV lots, highrise condos to suburban homes, are now being bought by people as a vacation home away from home.
Cabins, Cottages and Chalets
Don’t let the rustic names fool you. These are basically single-family homes in a recreational setting. Many are luxury homes that rival or exceed anything in the city.
With most waterfront properties in places like B.C. valued at or near $1 million plus, a cabin on a lake or ocean has become the ultimate recreational property.
The next best thing for many buyers is a home that has lake access, usually via a community beach shared by residents of a development.
Golf resorts are another place where many detached vacation homes can be found, lining fairways and providing easy access for golf enthusiasts.
With cabins in many popular resort areas becoming very expensive, some people are choosing to buy ranches, farms or reasonably priced homes in a residential community and using them as recreation property.
Resort Condominiums
Whether they are at a ski resort, lakefront development, or in a golf course or retirement community, condominiums and townhouses offer strata ownership, usually at more affordable prices than outright ownership of a vacation home.
Advantages of condominium properties typically include less maintenance, the ability to lock-it-and-leave-it with greater peace of mind, and the option of having a professional property management company rent your unit and generate revenue to defray the expense of ownership.
Disadvantages are that you seldom have your own private space outdoors except for perhaps a patio or balcony, and will have to share common areas such as pools, hot tubs, and parks with other owners.
Some people who can’t afford to buy a cabin or cottage in a certain area right now decide to buy a condo instead, just “to get their foot in the door,” and then plan to move up to a cabin sometime in the future.
Fractionals, Time-Shares
These are usually condominium or townhouse-style units that, due to their shared nature, are more affordable for many buyers.
Fractional ownership units give you deeded title to a portion of a property, meaning you can sell or will your share, and can benefit if the property’s value increases.
Time-share property provides you with the rights to use of a property a certain number of weeks each year for a set amount of years. In many time share resorts you might not use the same unit each time, but one that provides a certain level of accommodation.
The value of time-shares tends to decline as you use up your annual weeks.
Many fractional ownership and time-share developments now include membership in a resort club that allows owners to trade use of their vacation home for a stay at a similar type of property in another resort area of North America.
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