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Your Cottage Might Yield Better ROI than Your Home and Here is Why

Tuesday, June 11, 2019   /   by Sally Niu

Your Cottage Might Yield Better ROI than Your Home and Here is Why

Planning a cottage getaway this summer? Check out the fresh statistics of Canada’s recreational property market.


On June 6th, Royal LePage released its study on the recreational properties in Canada. The study reported a healthy overall price increase of 5% at a national level. The aggregated sale volume, on the other hand, suffered an 8.3% drop.

Across the country, baby boomers are competing with young families for limited inventory, driving up the price of recreational properties. Young families are the traditional driving force on the recreational property market. For many families, the cottage is a repository of fond family memories as kids grow up. Who can blame the retirees for seeking cottages, cabins, and chalet-style retirement properties in the countryside? It just so happens to be that over 31% of Canada’s population falls into the 50+ cohort.

According to RLP, most provinces experienced a year-over-year decline in recreational property sales, as the inventory dries up. The only exception was Quebec, which saw a 6.3% increase, as supply kept up with the demand. 

Areas of Ontario Set Record With Double-Digit Price Appreciation

With a 7.2% year-over-year increase, Ontario enjoyed the second highest price appreciation in the country. Some pockets of the region even went through the roof with a 25.7% record-setting appreciation rate. That’s a pretty handsome return-on-your-investment, compared to the 3.6% overall appreciation rate of the GTA housing market in the last 12 months. Driving by the strong demand, Royal LePage expects another 8% increase in the aggregated price of a single-family recreational property, over the next 12 months.

Recreational Property Market At Glance

Ways to Further Boost the ROI on Your Cottage

In addition to the appreciation of the value of your cottage, you can maximize the cash flow by renting it out during the days you are not there. List your property on specialized marketplaces like Airbnb and VRBO to get wide exposure. Planned well, you could start paying off parts of your investment right away! Want a personalized Investment action plan? Call us for a free consultation! (416)-804-5555.


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