“Demand still growing for recreational properties
BLACK ROCK RESORT That post-war cottage was nothing like this.
By Maureen Licata Contributor
May 19 2008
When leisure beckons, many leave the mundane behind for their second homes. But the post-war cottage so comfortable to returning soldiers and so loathsome for their brides, sans heat , sans water, sans floor coverings, is nearly extinct. Today’s recreational properties are solidly up-market and amenity-heavy.
A study entitled “Seeking a Luxury Lifestyle” questioned 3,000 readers of Architectural Digest about recreational properties. Forty-one per cent already own two or more homes, while 36 per cent plan to buy an additional home within the next two years.
Over the last five years, the demand for recreational properties has steadily risen. “The increase is very significant,” says Wayne Schrader, owner of ReMax Camosun. “There is so much going on with regard to recreational properties. More baby boomers are interested in real estate. Many have had an abundance of success, and others are purchasing these properties with their inheritances.”
Locations like Cowichan Lake are well-suited to satisfy the demands of recreational property seekers. And unlike Shawnigan Lake, available land is plentiful there. Other parts of Vancouver Island are getting into the act. More remote areas like Port Renfrew are hosting some “small scale projects, like six- to-eight-lot subdivisions,” says Schrader. “And there’s more value further up-Island, around Courtney and Comox,” says Scott Piercy, sales representative with Sotheby’s International Realty.
Rental revenue potential is also touted on the Black Rock Resort web site. The recreational development in Ucluelet melds the majestic natural setting with high-end creature comforts. Fee simple, whole ownership units start at $250,000.
According to the web site, “The resort is situated on a black rock promontory, with 8.5 acres of rainforest, and 1300 feet of waterfront. Swimming and hot pools are carved into the face of the black rock cliff. There will be just 132 whole-ownership opportunities at Black Rock Oceanfront Resort. The resort will comprise 70 suites in the main lodge and 62 suites in the 14 oceanfront cottages scattered throughout the site and surrounded by rainforest, including some 80 to 100 foot tall trees.” Owners get to use their units for 28 days in prime time and must rent them the rest. Renting is oiptional the rest of the year but cuts into the rental returns which are split with the operator of the resort.
Most recreational property buyers prefer individual ownership, with fractional ownership and strata titles lagging behind in popularity, says Schrader. Once purchased, the properties remain in the family long term. “Owners don’t tire of these properties very quickly,” he says. “They tend to be held for a long time, as long as people see a benefit.”
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