COLLINGWOOD A seismic shift has occurred in Collingwood’s recreational property market in recent years, with a growing number of retirees and leading-edge boomers bypassing ski hills and waterfront for properties located in town. The desire for amenities has factored heavily into the trend, as does maintenance and rising waterfront taxes—the latter of which has caused some recreational enthusiasts to rethink their purchases. Younger buyers in their 30s and 40s have also shifted gears. Those who can afford it are driving demand for new construction, willing to ante up for the comfort, quality, convenience and options offered by newer recreational property product within a short drive to ski areas or water. Builders have been extremely busy, and five subdivisions are being unveiled in the area in the next six months. Entry-level buyers are most willing to compromise, looking to small, wartime homes priced from $160,000 to $200,000 in town. Condominiums are popular among all purchasers, priced from $140,000 for a two-bedroom in town or a 600 sq. ft. unit on the mountain. Currently, demand is strongest for waterfront and ski hill properties priced from $450,000 to $550,000, though this product is in very short supply. The starting price for a three-bedroom, winterized recreational waterfront property (if it can be found) is now $375,000. Overall, there is an adequate supply of inventory available in Collingwood in most price ranges, and more is expected to come on-stream in coming months. With market conditions easing considerably, recreational buyers are taking their time in making their moves. Year-to-date sales have declined 11 per cent from 419 units in Q1 2006 to 375 in Q1 2007. Declining water levels have been a factor in recent years. As a result, demand and cost is on the upswing for deeper waterfront in nearby Thornbury, with the sandier shorelines commanding premium prices—from $500,000 for a property that may need work. With out-of-towners and retirees willing to spend top dollar for quality listings, the area’s first time buyers are getting priced out of the market. Many are moving to outlying areas such as Meaford and Stayner. Trade-up activity is occurring in Collingwood’s recreational property market, but most owners would prefer to renovate, especially if their properties are well located. The upper-end of the market has been active so far this year, with a growing number of luxury home purchasers building their dream retreat.OREA (Ontario Real Estate Association) achieved one of its major government relations objectives in December when the provincial government announced that the existing land transfer tax rebate program would be expanded to include first time buyers who purchase resale, as well as new, homes. The change became effective immediately. First time buyers of resale homes are now eligible for a refund from the provincial government of up to $2000 of the land transfer tax paid. The expanded land transfer tax refund program for first time homebuyers is part of a package of new tax initiatives announced by Finance Minister Dwight Duncan in the 2007 Fall Economic Outlook and Fiscal Review.There’s a reason in every season… to be here in The Georgian Triangle. I came for the ski season and soon realized that I was visiting the area throughout the year; enjoying all of the recreational activities, events and culture it has to offer. I made the move from London, Ontario and I haven’t looked back since.As a Real Estate Broker and full time resident, I enjoy sharing this area with others thinking of making the move. I would like to help you make your move, whether it be full or part time. The Georgian Triangle includes the following districts/townships: Town of the Blue Mountains, Collingwood, Meaford, Clearview Township, Tiny Township, Wasaga Beach, Grey Highlands, Springwater, Mulmur and Essa. Maybe you are considering Wasaga Beach and Tiny Township districts which attract the sun and sand worshippers and claim the longest fresh water beach in North America. Perhaps the Blue Mountain and Collingwood areas, which attract the winter lovers with Blue Mountain and surrounding private ski clubs; claiming Ontario’s highest vertical lift and number one resort. Moving west there is Thornbury and Meaford which have beautiful harbourfronts and downtown communities with expansive countryside farms and apple orchards. Grey Highlands encompasses the Beaver Valley and Niagara Escarpment with picturesque views in every direction, hamlets and quaint villages, Brewster Lake and Lake Eugenia. Clearview Township which includes Creemore and Stayner, are lively towns and a short commute to Barrie, for those looking for a place in the southeast part of the Georgian Triangle. There are many areas to explore and I urge you to come and see for yourself what this area can offer you and your family. There are activities in every season for every age, festivals, excellent schools and employment opportunities; and in my opinion just a great place to work and play! If you're thinking about buying a piece of real estate as an second investment investment property in collingwood or the georgian triangle in collingwood or the georgian triangle in collingwood or the georgian triangle, market conditions are definitely in your favour. While the resale housing market has seen a tremendous amount of activity from first-time buyers in the past year, it's also a perfect time for existing homeowners to invest in secondary residential in collingwood or the georgian triangle. With record-low interest rates and significantly lower prices it's hard to go wrong - unless, of course you lack the financial means to make the investment. After all, you have to be ready to meet all the obligations that come with owning more than your principal investment property in collingwood or the georgian triangle. For instance, keep in mind that if you intend to rent out the second investment property in collingwood or the georgian triangle in collingwood or the georgian triangle, you'll also have to be prepared to deal with tenants and handle maintenance costs. Leverage Secondary home ownership is an attractive investment option because it gives you even more leverage than you have with your principal residence. Leverage is when a relatively small amount of your money controls a much larger asset - like a investment property in collingwood or the georgian triangle. The more leveraged you are, the greater the financial return on your down payment becomes if the value of your investment property in collingwood or the georgian triangle increases. There are very few other investments which can be purchased with such a small percentage of your own money. For instance, let's say you acquire a second investment property in collingwood or the georgian triangle in collingwood or the georgian triangle for $100,000, with a $15,000 down payment, and during the first year that you own it, the investment property in collingwood or the georgian triangle increases by a value of three per cent for a $3,000 gain. As a result, the return on your down payment of $15,000 is 20 per cent - $3,000 divided by $15,000. Other Investments By comparison, let's say you were to buy a term investment of $100,000 (in cash) for one year and it increased by $8,000 over the course of the first year. Since it cost you $100,000 in cash to buy it, the return on your investment is only eight per cent before taxes. Obviously, leveraging is a powerful way to make your money work for you. Getting Financing You should be aware that many lenders place non-owner occupied deals in the high-risk category and it's not that unusual to find lenders who will not finance rental units at all - or those who will only finance them if they are insured. Obviously, lenders will want to know whether the investment property in collingwood or the georgian triangle will carry itself. (Is there sufficient rent to cover the mortgage payment?) Don't make the mistake of assuming that a rental income of $500 per month will carry a mortgage payment of $500 per month. Only a portion of the rent is used to pay the mortgage; the remainder must cover taxes, maintenance, vacancy, bad debt and expenses. (Many inexperienced purchasers think that owning rental in collingwood or the georgian triangle will allow them to "get rich quickly" and when this does not happen, the owner becomes disillusioned and loses interest in the investment property in collingwood or the georgian triangle.) Costs You should also be aware that the cost of obtaining a mortgage (for legal and appraisal fees) on a non-owner occupied investment property in collingwood or the georgian triangle can be higher than the cost of obtaining a mortgage on an owner-occupied investment property in collingwood or the georgian triangle, when more than one unit - such as a duplex or triplex is involved. Interest rates charged on rental in collingwood or the georgian triangle might also be higher because some lenders view these in collingwood or the georgian triangle as being a higher risk. As mentioned above, the main responsibility of having a second investment property in collingwood or the georgian triangle in collingwood or the georgian triangle is being able to carry it financially. And if you're like most people, you'll probably have to rent it to someone as a result. This is also a great deal of responsibility because you will have to maintain the investment property in collingwood or the georgian triangle in addition to your own principal residence, and you'll be responsible for finding tenants who you trust and feel comfortable with. Some parents with grown children ready to go off to university or college choose to purchase secondary in collingwood or the georgian triangle for their offspring to live in while they attend school. This gives them an excellent investment and they are assured that the occupants will take good care of the home.