The Gulf Islands, just a two-hour ferry ride from Vancouver, have it all, starting with gorgeous ocean views and temperate year-round weather. Add in hiking, fishing and whale-watching and you have a locale that's ideal for either a first or second home. These days the smart shoppers breeze right by popular Salt Spring Island, where nice waterfront homes start in the seven-figure range, and keep on going to Pender Island, just a half hour south of Salt Spring, where prices are still middle-class reasonable despite galloping increases since 2002. A 112-sq-m cottage (1,200-sq-ft) on Magic Lake, Pender Island's largest body of fresh water, recently sold for $190,000. Prefer salt water? A two-bedroom cottage surrounded by an English garden and with a view of the ocean is on the market for $339,000. Free with any Pender Island property is a generous dollop of rustic peace. While the island does boast a large supermarket, a deli and a pharmacy, it's still waiting for its first traffic light and sidewalk. (For more information on the region, click over to Pender-Island.BC.ca or call Newport Realty at 1-888-629-6002).

Kimberly, B.C.

Picture Whistler without the crowds or stratospheric prices, and you have a pretty good picture of Kimberley, B.C. Located in the East Kootenay Mountains, a four-and-a-half-hour drive away from Calgary, the town of 7,000 is fast becoming a magnet for Albertans seeking affordable vacation homes. Surrounded by mountains, carpeted with lush forests, and studded with crystal clear lakes, it's paradise for the outdoor enthusiast. You can ski in winter, hike or fish in the summer — and attend one of the world's largest accordion festivals every July. One-bedroom condos near the town's ski hills start at $96,000, while $250,000 will get you a brand new four-bedroom home nestled in the forest, close to trails and golfing. (Royal LePage East Kootenay Realty at 1-866-427-0070 or EKrealty.com).

Port Loring, Ont.

Most Torontonians think cottage country stops in Muskoka, where hockey heroes and movie stars water-ski past each other's million-dollar properties. But drive an additional hour north and you hit a pocket of much more modest — and affordable — cottages on Pigeon Lake, Duck Lake and Caribou Lake. Here — a four-hour drive away from Toronto, five hours from Ottawa — you'll find lakefront cottages built in the 1970s with septic tanks, hydro access, and telephone lines for $100,000 to $150,000. A recent listing showed a 1972 wooden three-bedroom lakeside cottage with deck sitting on almost a hectare of land for an affordable $134,900. The real deals, though, are the older-style wooden cottages on goodsized lots without water access. These go for $70,000 to $100,000. "The prices for those are just fantastic," says Joe Whitmell, a real estate agent with Coldwell Banker in Port Loring, Ont. "Most people want to be on the water. But you can get to any of the lakes for boating from just about anywhere in the area. I just wish I had enough listings for the number of people ready to buy." (VacationLandOntario.com or Coldwell Banker in Port Loring at 705-757-2911).

Lac Lovering, Que.

Seven-figure price tags are common for properties on Lac Memphrémagog, Quebec's equivalent to Muskoka, but if you're willing to drive an additional 30 km southeast, prices plunge for cottages on smaller lakes such as Lac Lovering, Lac d'Argent and Lac Desmarais, a one-hour drive from Montreal. "Prices have nearly doubled from four years ago, but for $250,000 or less you can find a modest two-or three-bedroom cottage on the waterfront of many of the smaller lakes," says Roger Leclerc, real estate agent with Remax in Magog, Que. This spring, he sold a small, round two-bedroom cottage with 15 m (50 ft) of waterfront on Lake Lovering for $225,000. With scenic rolling hills and crystal clean lakes, this gorgeous area of Quebec boasts great fishing, kayaking and skiing; it is also less prone to pesky mosquitoes or blackflies than many other cottage areas. (Remax in Magog at 819-868-6666).

West Shore, Prince Edward Island

If you're interested in buying a quaint bungalow set amid a green, pastoral paradise, P.E.I. cottage property may offer the best value in Canada. While prices for waterfront properties near the central island towns of Charlottetown, Cavendish and Summerside have almost doubled in the past three years, you can still find great deals on the island's less popular West Shore. "The centre of the island is the hot spot," says Michael Poczynek, real estate agent with Century 21 Northumberland Ltd. "For something affordable and less touristy, stay west of Summerside on the southwestern part of the island. In that area, $150,000 will still buy you a dream cottage on the ocean." Heck, if you're willing to settle for a water view rather than water access, even $100,000 will get you a gorgeous countryside property with trees and a handsome home that's less than a one-minute walk from the beach. (Century 21 Northumberland Ltd. at 902-888-3107 or Real-Estate-2000.com).