Purchasing a weekend getaway or vacation home doesn\u2019t have to be a pipe dream. With the rise in interest rates and property prices, co-ownership with friends or family has become an intriguing option for some prospective owners of recreational properties. From multi-unit dwellings in Canmore to lofty chalets in the Mont-Tremblant, we explore the trends, opportunities and risks to consider for co- ownership, along with the most desirable locales across four Canadian regions.<\/p>\n
CANMORE, ALBERTA<\/strong><\/p>\n A fractional ownership model is popular in the Canmore region<\/a>, featuring a predetermined schedule divided among the owners. According to Christopher Vincent, Senior Vice-President of Sales at Sotheby\u2019s International Realty Canada<\/a>, this model is ideal for families with \u201ckids who are playing sports in the city, who are not going to be here every weekend, things like that,\u201d says Vincent. Co-ownership agreements among families are also on the rise, trading off weekends or alternating between winters and summers. The key consideration in such arrangements is lifestyle. Vincent notes that people are snapping up detached or semi-detached duplexes or hotel condos \u2014 anything with three or more units \u2014 in the downtown core near shops and restaurants or within a five-minute drive to resorts like Silvertip or Eagle Terrace, where they can ski in the winter and golf in the summer.<\/p><\/blockquote>\n MONT-TREMBLANT, QU\u00c9BEC<\/strong><\/p>\n In the Laurentians, property owners seek residences with ski-in ski-out access or lakefront homes. \u201cDon\u2019t even consider anything else,\u201d says Herb Ratsch, a Sotheby\u2019s International Realty Qu\u00e9bec real estate broker<\/a>. At Sommet des Neiges, a resort in Mont-Tremblant<\/a>, buyers can acquire a quarter share, equivalent to one week per month. \u201cThe beauty about buying that particular building is that even if you buy one week, you have access to the building 365 [days a year],\u201d Ratsch explains. This access encompasses amenities like the lake, ski lockers, the owner\u2019s lounge and parking. For those looking for a larger place, Ratsch suggests the luxury townhomes at Storied Places, offering fractional one-tenth ownership. Here, owners enjoy access to four weeks per year, which they can select at their leisure, while the remaining months are pooled on an as-available basis. Storied Places is also part of a club allowing owners to exchange their weeks for stays at sister resorts in locations such as the Bahamas or Jamaica. However, Ratsch notes that these properties often face challenges on the resale market. \u201cThere\u2019s often a lot of inventory on the market, which keeps prices generally low,\u201d says Ratsch. \u201cBuy it because it fits your lifestyle, not because you\u2019re making a real estate investment.\u201d<\/p>\n KELOWNA, BRITISH COLUMBIA<\/strong><\/p>\n Where else can you ski and golf in the same day? In the Okanagan<\/a>, condos and townhouses at ski resorts like SilverStar, lakefront properties in Spirit Ridge, and fractional ownership properties on a golf course with lake access cater to individuals with active lifestyles. Additionally, these properties can be rented out during periods of absence, provided local zoning bylaws regulating short-term rentals are adhered to. However, co-ownership still bears risks, particularly for properties protected by family trusts. Unlike fractional ownership, which operates on a clear and perpetually rotating calendar, family trusts may lack a similarly defined schedule. Families often opt for sharing alternating weekends or holidays, a practice that can become complicated with different families and conflicting dates. Marnie Perrier, a sales associate at Sotheby\u2019s International Realty Canada<\/a>, urges friends or families considering joint ownership to establish a clear exit strategy for when things go awry. She humorously notes, \u201cLike, you didn\u2019t do the dishes the right way, or you didn\u2019t sweep the floor the right way.\u201d<\/p><\/blockquote>\n SUNSHINE COAST, BRITISH COLUMBIA<\/strong> Each co-ownership arrangement is unique, making the need for careful planning and legal counsel crucial for success. Yet, for those with active lifestyles or entering retirement, co-owning in a recreational community is great for enjoying a vacation property without significant financial commitment.<\/p>\n![\"\"](\"https:\/\/sothebysrealty.ca\/insightblog\/wp-content\/uploads\/2024\/04\/localimagereader.jpg\")
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\nCo-ownership provides a safe solution for pooling resources and making vacation home ownership financially viable in the Sunshine Coast<\/a> amid rising property prices and interest rates. Gina Stockwell, a Senior Vice-President of Sales at Sotheby\u2019s International Realty Canada<\/a>, says that fam- ily trusts are common in the region. While trusts require a complex legal structure, they protect legacy properties within the family, from external litigation, such as divorce. In areas including Gibsons<\/a>, Sechelt<\/a> and Pender Harbour<\/a>, larger cabins, acreages with multiple dwellings or spacious homes are favoured by co-owners wanting to enjoy the region\u2019s natural beauty. \u201cWe\u2019re still very much a recreational and retirement destination,\u201d says Stockwell. \u201cSo, I would say people that are downsizing and moving out of big, urban centres are coming here for more of a quiet life.\u201d Prospective co-owners, however, should establish clear guidelines regarding property usage, maintenance and investment decisions, and draw up contingency plans to mitigate financial risks.<\/p>\n
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