It takes the jingle of many loonies to buy a rustic cottage by a lake. And 40 per cent of those buying recreational property are planning to rent the place at least part of the time to offset the cost of the retreat, says a recent survey for Royal LePage.

The poll portion of the Royal LePage recreational property report was conducted by Ipsos-Reid between April 14 and April 29.

Only eight per cent of Canadians own a cottage or recreational property. About 17 per cent of those are likely to sell their recreational property within the next two to three years, while six per cent are likely to buy a cottage in that time frame.

Royal LePage says there will be four Canadians looking to buy a cabin this year for every one who plans on selling. Escalating recreational property values are prompting buyers to think about creative methods of finance.

Thus, 40 per cent of prospective buyers say they plan on renting out a cottage. But only 10 per cent of existing owners say they rent their place when they’re not using it.

Travel Alberta photo
More people are moving to Canmore, drawn by the mountain lifestyle and the ability to rent out recreational property.

The rate isn’t up to 40 per cent in Canmore; only 10 to 15 per cent of the recreational property buyers are looking to rent, says Brad Hawker, broker at Royal LePage Rocky Mountain Realty in Canmore.

It’s only in the last couple of years that Canmore – which has about 11,000 permanent residents and 2,500 recreational residents – has permitted the rental of recreational property. You can now rent out a ‘tourist home’ for a minimum one-week stay in some areas.

Hawker distinguishes between investors who intend to rent their property full time and recreational buyers who plan to rent it part of the time when they’re not using it themselves.

More people are moving to Canmore because of the lifestyle. As corporations adapt to more flexible work models, people can commute occasionally or work from home. The diverse market includes recreational buyers, investors and people getting into the market now before the land supply diminishes, he says.

Gord Vizzutti, marketing manager of Kicking Horse Mountain Resort near Golden, B.C., says a little over half the owners of condos in the Whispering Pines section are interested in revenue generation.

Typical owners rent part of the time, some rent most of the time and a few don’t rent at all. “Most people fully intend to use it themselves at some point to experience the mountain resort lifestyle,” he says.

Kicking Horse is a four-season resort in the third year of a 10-year plan. When all the lifts are installed, all sites will be ski-in, ski-out. Summer activities include bird-watching, mountain-biking, hiking and white-water rafting.

Andy Harris, one of the directors of Canadian Mountain Cabins, says fractional ownership lets people buy a vacation property without tying up all their capital.

The Canmore company’s first project at Kimberley, B.C., involves 55 sites. Calgarians are looking for a longer golf season, and Kimberley starts earlier and finishes later than anywhere east of the Rockies.

There’s another reason to buy a cabin in the woods. Harris notes a study that showed the quintessential Canadian icons are Niagara Falls, the Rockies and a log cabin with a red canoe down by the water.

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A new hotel has been added to the roster of businesses in the fast-growing town of Strathmore, east of Calgary.

The 60-room Travelodge Strathmore is the first new build for Travelodge in Canada in at least a year, says corporate spokeswoman Susan Strain. Other new properties in the last year or two have been conversions from other brands, or independents.

The new hotel offers meeting space for more than 300, an indoor pool and waterslide, fitness centre and business centre. Another 61 rooms are due to open later this year.

Franchise owner Loizos Zakos says the project was planned from the ground up. He has done business in Strathmore for years, with two restaurants in the town and two restaurants in other towns. The hotel complements adjacent Strathmore Station, a restaurant Zakos also owns.

Dwight Stanford, town manager of Strathmore, says the Travelodge is an asset to the community because on many weekends existing motels are full.

With 8,500 residents, Strathmore is the third-fastest growing municipality in Canada for populations over 5,000, after Cochrane and Sylvan Lake. Among other businesses, a new 59,000-square-foot Extra Foods is about to open up across the Trans-Canada Highway from the Travelodge.

Strathmore builds 150 to 180 new houses a year. Last year was a record, and the town is keeping up the pace this year, says Stanford.

Web watch:
www.bradhawker.com
www.kickinghorseresort.com
www.town.strathmore.ab.ca