Ontarians are Buying Their Vacation Homes NOW - Here's Why - Rego Realty

 

Demand for homes in Ontario’s “Cottage Country” is soaring.

Remote properties that would normally take weeks or months to sell are now off the market in days and, unsurprisingly, prices are rising sharply.

No, there wasn’t a Lotto 6/49 glitch. 

Rather, this is the result of many Ontarians accelerating their long-term plans.

If owning a vacation home is a goal of yours, this is a trend worth understanding. After all, as demand increases, so does the cost of your retirement dream.

To help you make sense of it all, here’s a rundown of why and how people are buying vacation homes ahead of schedule:

 

The Ability to Work Remotely

 

As we continue to be mired in COVID restrictions a year after the initial outbreak, it’s clear that, for many, the option to work remotely is here to stay.

So, if you can work from anywhere, why not a lake house?

How about starting your day with a jog on the beach?

Or, taking a nature walk between calls?

Canoe Zoom meetings, anyone?

You get the idea.

For many Ontarians, the ultimate work-life balance is becoming a reality. They’re ditching big city life, retreating to rural escapes, and living their retirement dreams — while still on the clock.

(As long as there’s wifi.)

 

To Hedge Against Travel Restrictions

 

Traveling abroad has become near impossible due to quarantine protocols.

While this will hopefully end sooner than later, many avid travelers have decided to prioritize certainty over exotic locales.

For that reason, they’re reallocating money they’d typically spend on flights and accommodations and locking in their permanent domestic escapes. 

 

To Cash Out

 

As of this writing, the average detached home in Kitchener-Waterloo costs around $900,000.

The average Ontario cottage costs around 500k — and that includes the Muskokas and other high-ticket communities. Many cottages can be had for much less.  

For many homeowners who now have significant home equity, downsizing to a cottage is the perfect way to cash out, live mortgage-free, and, in some cases, retire years ahead of schedule.

 

To Invest

 

This is a hybrid approach often taken by those who are more than a decade from retirement but want to lock in and enjoy their vacation home now.

Instead of investing in a townhouse or condo, they’re purchasing a cottage and renting it out.

(And, with more Canadians likely to vacation domestically, you’d have to think there won’t be a shortage in renter demand!)

Not only does the rental income help them pay down their mortgage while building equity, but they can also block off time to enjoy their vacation home themselves.

Win-win!

 

Plan Now to Preserve Your Retirement Dreams

 

While cottage prices are indeed rising, they’re not rising as fast as homes in many Southern Ontario cities.

But again, with supply becoming increasingly limited, they could sooner than later — especially with continued remote working and foreign travel restrictions.

Now is a great time to think about your long-term goals, understand your options, and get a plan in place to make your retirement dreams a reality

Perhaps sooner than you may have thought.

 

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