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Cottage Life

Buy the Way: A family of three shares a tiny home they can bike to

The search: For Justine and Olivier Penner*, the search for a weekend getaway started with a desire for a little more elbow room. The couple had been renting a two-bedroom apartment in Vancouver since 2011, and in 2018, when their daughter was four years old, they started looking for land that they could enjoy and that would be an investment they could pass along to their daughter.

Most importantly, they didn’t want to spend more than $100,000. “That’s a modest amount, unless you wanted to take on a mortgage,” says Justine. “And both of us are very debt-averse.” Olivier was keen to travel without a car, and so they narrowed their search to the Gulf Islands, which is accessible by ferry after a short bike or bus ride from the city (though they have a car and a cargo e-bike for transport when necessary).

They found a spot that looked ideal: a 1/2-acre plot of land in the woods where they could tent camp, that was a 20-minute walk to local beaches and close to the ferry. And it was potentially within their budget—if they could just get the list price down from $140,000.

The compromise: They researched the history of the land and discovered it had sold for $68,000 the year previous, so they had some hope of bringing the cost down—but unfortunately, their initial offer of $100,000 was quickly declined. But a few months later, Olivier noticed that the land still hadn’t sold. They asked their realtor to re-engage with the seller, and—after rallying a little more money—negotiated a price both sides could live with: $113,000. “I joked with Olivier that we just bought a really expensive camping spot,” says Justine.

The silver lining: Tent camping was the plan for the near future—until they learned their friend, Angela, had built a tiny house on another, more challenging-to-access island. She was hoping to find a place to move it to that was less remote. Local bylaws stated that so long as they kept the wheels on the 16-by-9-foot cabin, the tiny home could legally be “parked” and inhabited for up to 90 days a year as a recreational vehicle—meaning no camping for Justine and Olivier and a closer getaway for Angela and her partner, Daniel. The four of them hammered out a five-year time-share agreement in writing—and they divvied up the $5,000 expense to move the tiny home onto the property (thanks to highway permits and making the cabin road-worthy), along with ongoing maintenance costs. The getaway has been just what the family of three was looking for. “There’s enough room for us to sleep in the loft. We put up little lights, and it’s just naturally cozy,” says Justine.

*All names have been changed

Owner advice: Lessons learned from sharing a tiny home

Cover all the details
The couples spent hours creating what they describe as their “MOU”—Memorandum of Understanding—that lasts for five years. It covers how expenses and time at the place are shared and, perhaps more importantly, what happens if someone pulls out of the agreement early and how they would handle it. At the end of five years, they’ll discuss the arrangement for the tiny home again.

Put it in writing
The group uses Google Docs to track everything. There’s nothing formal that says who gets which weekend—“and I wouldn’t expect anyone to block out the whole summer,” says Justine—but so long as either party doesn’t exceed their allotted 45 days, it’s flexible.

Be prepared for some conflict
“You can never anticipate all possible misunderstandings,” says Justine. Lucky for the group, she’s a skilled mediator, so they’ve quickly dealt with anything that comes up. A group WhatsApp channel keeps communication lines open—and they make sure they get together for dinner at least once a quarter to discuss any issues that arise. “We have a pretty high commitment to each other and the friendship,” she says.

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Cottage Life

A new demographic could be driving up recreational property prices in Alberta

Same as the rest of the country, Alberta isn’t exempt from Canada’s rising recreational property prices, says Royal LePage’s Recreational Property report. Alberta’s average price will continue to go up in 2022 at a nine per cent clip to an average of $1,170,660. Average prices in Alberta had already soared in 2021 by 31.5 per cent to $1,074,000.

Waterfront property isn’t as widely available in the western provinces. Instead, its ski chalets and mountain retreats that are driving up the price. “All properties have been selling extremely well,” says Brad Hawker, the associate broker with Royal LePage Solutions in Canmore, Alta. “It’s not limited to one segment or another.”

Year-over-year increase of recreational property price in Alberta in 2021

When it comes to Alberta, most of the province’s recreational property market is clustered around Edmonton, at least in terms of waterfront properties. Lac Ste. Anne saw the largest recreational property price increase, rising 44.2 per cent from $416,000 to $600,000; Pigeon Lake rose 20.4 per cent from $565,000 to $680,000; and Wabamun Lake rose 16.7 per cent from $762,000 to $889,000. In terms of non-waterfront properties, Canmore had the biggest jump, rising 32.7 per cent from $1,025,000 to $1,360,000.

Who are the buyers?

Canmore broker Brad Hawker has been selling properties in the Canmore area for 30 years. Twenty-eight of those years he’s sold to the same demographic: young people looking for a welcoming community where they can raise a family. Most often, they’re from Western Canada and are also looking for a recreational location. But in the last two years, he’s started to get a lot more interest from Ontario and Quebec retirees.

“A lot of their kids have relocated to Alberta. So, when they look to retire, where do they want to be? Close to their kids and grandkids. Edmonton and Calgary would be nice, but they also want to be active.” he says. “They want to come out to the mountains and ski and hike and mountain bike. That’s been a big part of our market.”

Similar to the rest of the country, Hawker adds that Canmore has also seen its share of millennial families who now work remotely and are looking to get away from the city.

Whereas Alberta’s lake district tends to be popular with Edmonton residents due to its proximity. “Since pandemic restrictions have limited Canadians’ ability to travel abroad, that demand has skyrocketed. Line-ups at boat launches and campgrounds are longer than ever,” says Tom Shearer, a Royal LePage broker with Noralta Real Estate, in the company’s report.

What’s selling and what isn’t?

The short answer is that everything’s selling. This includes waterfront cottages around Alberta’s lakes, as well as mountain retreats in Canmore. However, Canmore tends to be a unique situation. Similar to the rest of Canada, the area is seeing low inventory rates, but this is exacerbated by Canmore’s geography.

“We have very limited inventory, very limited construction, and very limited approval for new projects,” Hawker says, “so, we’re not even getting any relief on the supply side.”

Canmore is located in a valley between two mountain ranges. Both slopes of the mountain ranges have strict no-building policies, the area being used as a wildlife corridor to let animals pass unhindered. To the west, the town has Banff National Park, and to the east is Bow Valley Provincial Park.

“Getting a new land area approved for development takes an extremely long time because of the environmental side of things,” Hawker says. He predicts that within the next 15 years, all of Canmore’s available land will be developed.

Future predictions for Alberta real estate

Both waterfront property and chalet prices are expected to remain high in 2022. “Strong demand for waterfront properties continues to put upward pressure on prices in the region, and I don’t expect there will be any relief this spring,” Shearer said.

The same can be said for Canmore. In 2021, the town saw a record year in real estate sales, but despite the soaring prices, Hawker says he doesn’t expect them to keep rising at the same rate. In fact, he’s already seeing some levelling off. “You can’t keep having record year after record year of sales volume.” Already the first quarter of 2022 has been slower than 2021. Keep in mind, that 2022 sales volume is still 64 per cent higher than the first quarters of the four years preceding the pandemic.

As for what could be causing the levelling off, Hawker points to rising interest rates on mortgages. He expects the rates to start easing back to pre-pandemic levels. And if the pandemic causes a recession, people might not be able to afford their mortgages, making more properties available.

Regardless, Hawker expects that the lack of available land in Canmore will keep supply low, meaning that for the time being, demand will stay high, keeping prices competitive.