The 2007 RE/MAX Recreational Property Report found the top-end of the market stands to gain most from the aging baby boom demographic, as many Burlington Ontario boomers prepare for their retirement years. A life long resident of Burlington Ontario, it wasn't until a few years ago that I actually had the opportunity to view the Burlington lakefront properties from the water. There is a definite pattern developing as unbelievable homes of the highest calibre are springing up along the Burlington shoreline. Burlington Ontario Real Estate is certainly an attraction to the Boomers at large.
Teardowns, custom-builds, and renovation continue unabated as a result, changing the shoreline of lakes and rivers in 34 of the 39 markets surveyed from Newfoundland/Labrador to British Columbia. Upper-end sales have also affected recreational property values across the board,placing upward pressure on prices, particularly in Western Canada. Starting prices have topped $500,000 in 31 per cent of recreational property markets. Only seven offer waterfront properties under the $250,000 price point. "It's been said that money made in stocks and bonds typically works its way into real estate,"says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "This year is a prime example, as economic performance and stock market profits have propped up activity in most Canadian markets. The boomer attitude is go big or stay home."
Boomers -- born between 1946 and 1965 - currently represent about one-third of Canada's population and control approximately 45 per cent of its wealth. They own $230 billion in realestate assets and have a net worth of $530 billion. While many boomers have retirement in mind,others are looking for a second home where they can spend quality time with their families andfriends. Although the investment aspect is secondary, it still plays an important role in the decision to purchase a recreational property, be it a lakefront cottage, a hobby farm with acreage,or an oceanfront condominium.
"Baby boomers are investing in the future - from both a lifestyle perspective and an economic standpoint," says Elton Ash, Regional Director, RE/MAX of Western Canada. "Tremendous equity gains have been realized in recent years as demand for recreational properties across the country swells. Given the aging of the population, this trend is expected to continue for at least the next five to 10 years as baby boomers move through the cycle."
