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It’s a cornerstone of economics, really: when
demand outstrips supply, prices go up and up.
And up. This maxim is particularly true of
recreational property, where demand is driven by
a generation with unprecedented affluence.
According to Landcor, a subsidiary of the Niho
group of companies, whose business it is to
analyze the real estate market in British
Columbia, only six per cent of the province’s
land area is privately titled. Of these 1.7
million properties, only a small fraction are
considered recreational property- that
combination of water, views, and amenities urban
dwellers are anxious to invest in.
Most people shopping for recreational property
also want a reasonable drive time to their
future cabin or cottage.
And then there’s the demand. Buyer s in British
Columbia and Saskatchewan compete with buyers
from Alberta, where there are considerably fewer
opportunities for waterfront- coupled with the
dollars produced by its overheated economy- and
increasing international demand.
Landcor notes another significant market factor:
the “penturbanite”. Penturbia is a theory of
population movement put forward by University of
Washington professor emeritus Jack Lessinger,
where affluent, active, mortgage-free,
retirement age people move from large urban
centres towards the outlying districts. Where
their interests coincide with other buyers- for
a place around water (lakes, rivers or ocean),
where there are utility services, good views and
nearby recreational opportunities within a
convenient four to six hour drive of a major
urban centre, close enough get there and back on
a weekend- prices are highest.
So, how do you find and buy the perfect place,
amid big demand and relatively short supply?
Rudy Nielson [sic] of Niho Land and Cattle
Company, who has been buying and selling
recreational property in BC for more than 35
years, offers these tips:
The Groundwork
Having more properties to choose from will
better the odds, so when you’re looking for a
property, use all the avenues you can: realtors,
the Internet, newspapers, magazines, “word of
mouth” and “for sales” signs. Sort out the
properties by priority as they are received, and
organize those that interest you by area, price
and size. Organize the ones that don’t interest
you too, and label them by the person who sent
you the information. Determine any missing
information and phone your contact to fill in
the blanks.
If you are dealing with a private individual, it
is advisable to do a title search. Make sure you
receive the full and correct legal description
on each property, then order a title search.
Contact a title search company, or have your
notary or lawyer do it.
Know the Area
By using those techniques, you should be able to
get a gut feeling for the area and even the
price. Here are some sources of information
Nielson [sic] suggests will help:
Pre-emption map:
This is the most important map. It gives you the
big picture: crown vs. private land, roads,
railroads, power lines, rivers, big creeks,
mountains, towns and much more. If necessary,
you could find a property using only this map.
These maps are sold in some bookstores.
Forestry Recreation map:
The forest recreational map is the most recent
map of the road systems and lakes, good camping
spots on forest roads and lakes. They are
available at local forestry offices.
Topographical map:
This map shows you if the property is very
hilly, steep or swampy and if there are any
access trails. These maps are produced and sold
by the federal government.
Vegetation map:
Formerly known as a Forest Cover Map, this map
shows the forest species, age and height
classes, crown closure codes and site index. It
will also show types of terrain. These maps are
available through Clover Point Cartography.
Plan:
Go directly to the registry office or through a
title agency and order the plan number of the
property. It will give you the size and
measurements of the property, and show you where
the roads are.
Survey notes:
While the surveyor was setting up the original
cornerposts to the property, he would make notes
in his journal identifying blazes and other
distinguishing features of the property. You can
request these notes from the Surveyor General’s
office. Using these you can determine where the
cornerstones of the property were originally set
and walk the property lines.
ALR map:
Phone for a copy to determine if all or part of
a property is in the agricultural land reserve.
Price & Value
What’s it worth? Anyone who lives in Calgary or
Vancouver today knows that the assessed value of
a property is not necessarily an indication of
its market value. But it can be a baseline. Map
the properties for sale in a given area, along
with the owners’ names, asking prices, and size.
This will give you a rough feel for price.
Never worry about an asking price- if you do
your research and prove your price is better
than theirs, you can reason with them. However,
you don’t want to drive out to the property and
find it sold. Take the best properties and put
an offer on them subject to viewing. Most
importantly, learn how to negotiate.
Finding the Property
When going out to look at properties, make sure
you let somebody know where you are going and
how long you will be, and leave them a map.
Always record your mileage and direction for
future use. Use the speedometer in your car with
the pre-emption and forestry maps.
Closer to the property, use the forest cover and
contour maps. If you have any problems finding
the property, go to a local store or gas station
and ask them for help. When you get there, look
for new posts or identification markers. If
there are none, that means you must use the old
surveys. Don’t forget to take pictures of the
property when you are walking it.
Make sure you know the acreage and measurements
of the property. Once you have found what you
think is a cornerpost, put your hip chain onto
it, look at your map and find the measurement
and direction that you have to go. Walk the
entire property, only stopping where the post is
supposed to be. Don’t forget sunscreen, bug
spray, water, food or your notes. Remember, the
better the transportation you get, the faster
you get to look at deals.
Packaging a Deal
If you don’t have the cash in hand, you’ll need
to finance your purchase before removing the
subject clause, either through a bank or an
alternative source. Packaging your information
can help convince a potential partner, investor
or lender. Take all the existing information you
have on the property and assemble it into a
detailed brochure. The more information you
include, the clearer the picture you will be
able to present to a lender or partner. |
