The relative large increases in values for these properties have created a situation where more are on the market then normal. This in turn has caused marginal price increases over last year. But these are a finite resource and as more properties find new owners, the reduction in available pieces will cause the price to continue to climb. Who is buying raw land? Investors of course. Overhead on raw land is as low as you can possibly get, mainly pay your taxes. The increases in frontage and to some extent back lots makes for a rather low risk and decent profit margin scenario. We also see individuals who have plans for the future acquiring land today to fix the cost and ensure that they have the property they want for their future development.

Recreational properties (cottages) are open to both local and away markets. PEI is blessed with miles upon miles of oceanfront and some very beautiful and excellent rivers for those individuals more interested in water sport aspects. The Island has numerous small cottage communities spread out across its shoreline. Offering your quintessential rustic cottage; a small ‘A’ frame or one story structure with basic conveniences and outstanding views. Many of these are available between $100,000 to $150,000 Cdn, be they a few years old or brand new construction.   These are perfect for locals as weekend get a ways and for off Islanders as summer destinations. Many off Islanders will join associations that help them rent the cottage for those weeks that it would otherwise sit vacant thus offsetting costs. Buying this type of property means slightly higher overhead. Taxes go up of course, as does the cost of maintaining the structure and having it properly winterized at the end of a season.

Summer homes are a term I’ve begun to use to describe $500,000 or more estate properties that grace the shoreline with more and more frequency. Most of these are very elaborate constructions with upgraded amenities and would make lovely residences all year round.   Some do, as they sit in sub divisions with year round access. Although their frequency is certainly on the rise, these types of properties do not constitute a major sector of our real estate market at this time. The potential to see a rise in these types of properties would require a strong market of individuals with large disposable incomes and recognition of the Island as being a desirable destination for a longer period of time then the current 8 weeks I often see posted in articles from the New York Times to the Globe and Mail.

The concept that the Island only enjoys July and August as two worthy months is certainly very inaccurate. My concept stretches the desirable season from May to October and I can say this without grimacing. As spring blooms into life until the colors of fall recede, PEI is the place to be in North America, if you like weather without extremes, if you like natural beauty, if you seek a communion with said nature and an opportunity to devoid yourself of all the rushing and hustling that life has become famous for.  To paraphrase a famous commercial…’Try it you’ll like it!”

Buying recreational property on the Island for profit means allowing it sufficient time to accrue in value. If your interest is in making money by all means talk to one of our agents, they can assist you in making this happen but don’t look for 100% turn over within the year. Yes it has happen but it is not the norm. However, you can take the time to enjoy your investment at whatever level you deem comfortable (front a lot to an Estate) while it builds it worth.

Rick Dufresne