Cottage On The Mind? Parkbridge Provides An Affordable Alternative

Weekends of hard labour, pricey closing costs, and expensive second mortgage payments are no where in the minds of those who have discovered the benefits of land leases.

Popular throughout Europe and the United States, land leases are a relatively new concept to come to Canada. And its timing could not any be better. Today, Canadians face alarming household debt levels and tightened federally mandated home ownership regulations.

But an online survey conducted by Leger Marketing, on behalf of Royal LePage Real Estate Services, reveals that many Canadians either own or hope to own a recreational property.

According to their sample of 1,000 people, the survey found that 32% would cut discretional spending to be a cottage owner. A quarter of those also surveyed stated they would consider purchasing a fixer upper, 22% of those surveyed view buying with friends or family as a viable option and 23% would buy land with the intention to build in the future.

Conversely, thousands of people across Canada are enjoying the serene cottage lifestyle without having to make major sacrifices.

Related links:
Keep the Peace at the Cottage
Where Can I Afford a Cottage in Canada?

How do they do it?

Enter Parkbridge Lifestyle Communities, Canada's largest owner and operator of land lease communities. The company specializes in five distinct areas: cottage & RV resorts, all ages communities, marinas and chalets. The company has over 25, 500 operational and expansion sites located in British Columbia, Alberta, Ontario, Quebec and New Brunswick.

With 92 properties spread out across the country it can cost you between $50,000 and $150,000 to buy your own turnkey resort property. The only things you'll need to bring are pillows and consumables.

Unlike the typical home ownership model, the resident owns the property in a manner that is similar to freehold ownership; however, they lease the land that the property sits on. And, like condo living, maintenance fees are paid.

The differences that will appeal to value conscious consumers insofar as the land lease model is concerned, are that residents don't pay land transfer tax and they don't pay closing costs – in fact it's similar to financing a car. As well, insurance costs are considerably lower because the resort properties are classified as RVs. Overall, property prices, property taxes and maintenance costs are much lower than mainstream houses and condominiums.

To see how it all works, I spent some time at the Melody Bay resort located in The Kawartha region of Ontario. I was surprised by what I saw: a tight-knit community. With the low price points on offer, I expected the place to be less than exceptional. Instead, what I witnessed was a pristinely maintained and modern lakefront property that is fully equipped with a variety of amenities, including two outdoor heated pools, a marina, recreation rooms, yoga classes and much more.

Plus, Buckhorn, Ontario has many of the amenities that would make most people feel at home. In fact, the resorts are purposely situated in developed and scenic communities to ensure you won't suffer from cabin fever.

No doubt, the idea of land leasing would appear to have a potentially sizeable long-term cost, but all of the residents that I spoke to find that, after they made their calculations, land lease is a cost-effective and time saving home ownership option.

The overall savings will resonate with would-be buyers who are hesitant or don't believe that they can afford to get on the resort property ladder.

If you're not ready to commit to purchasing a cottage, renting is still a sound option. For instance, a three bedroom pet friendly rental at Melody Bay ranges from $160/night - $190/night or $895/week - $995/week. The resort properties at Parkbridge Lifestyle Communities run on an extended season, beginning on April 1^st and ending on November 15^th. The Lakes of Wasaga property is billed as a four-season resort. Here, vacationers have the option of a fully equipped chalet as well a resort cottage for short-term rental.