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).

Belize is that small spot on the map to the right of Guatemala and just below Mexico. It's packed with gorgeous beaches, world-class snorkeling, deep-sea diving — and, oh yes, property that's going for a song. Just ask Craig Rowland, 33, of Calgary, who recently returned from Progresso, Belize, where he spent his days swimming with the stingrays out on one of the world's largest barrier reefs. He was so impressed by the picture-perfect weather and gorgeous setting that he paid $6,500 (U.S.) for a piece of land measuring 26 m x 41 m (85 ft x 135 ft) in a small, gated community just one row away from the town's lagoon. Don't want the hassle of building? Outside the high-cost tourist areas, you can buy an attractive, modern home for $50,000 (U.S.) to $100,000 (U.S.). Either way, you'll find Belize's lifestyle easy to slip into. "Everyone in Belize speaks English, Scotiabank is down here for easy banking, and the food is just what you'd get back home, except a lot cheaper," says Rowland. How much cheaper? Beer goes for $2 (U.S.) while a fresh-grilled seafood dinner goes for $9 (U.S.). (Check out ProgressoHeights.com or Viviun.com). Just one word of advice for Belize and for all our foreign destinations: make sure you contact the local Canadian embassy and get their advice about local lawyers before embarking on any real estate deals. Sad to say, it's all too easy to be taken advantage of in a foreign country.

Costa Rica

Costa Rica boasts spectacular mountain ranges and green rainforests, but that's only the beginning of its charms. It's also one of the most stable and prosperous democracies in Latin America and enjoys one of the world's best climates. On the country's central plateau, temperatures hover around a comfortable 22° C for much of the year, while hot-weather lovers can find their bliss along the country's gorgeous coastline. John Latham, 60, of Toronto didn't hesitate for a moment when he bought his 150-sq-m (1,600-sq-ft) condo on Costa Rica's Pacific coast three years ago. The two-bedroom, two-bathroom unit in Playa Junquillal set him back $190,000 (U.S.) and he considers it a deal. "I wanted to be near the water and play golf and I get both here," says Latham, who spends half the year in Costa Rica. Good-sized condos with ocean views in the same area continue to go for about $170,000 (U.S.). If you want something cheaper, head for the mountains. One recent listing showed a bright, three-bedroom home with kitchen, laundry and carport for a mere $65,000 (U.S.). (For more information see PropertiesInCostaRica.com or Viviun.com).

Budapest

Chances are that Budapest doesn't spring to mind as a potential location for your vacation home. But then you're not Iren Szekeli, 42, a mother of two in Toronto. When she visited her family in Hungary this past summer, she was amazed at the affordable prices for charming pied-a-terres in one of Europe's most historic cities. So she took the plunge and bought a small studio apartment right where the action is — Budapest's central core. "It's a building from the 1800s and it's downtown right next to a subway station," says Szekeli, who plans to spend summers in Europe. "Museums, good food, great baths and very child-friendly. My kids love it." Her total cost to purchase the apartment was $40,000, and she has since spent another $20,000 to improve the space with renovations and furnishings. That's a steal for a place of your own in one of Central Europe's great cities. (For information, visit Viviun.com).

Languedoc, France

You've heard of Provence? Languedoc is the less well-known part of France to the southeast. It borders on the Mediterranean and nestles up against the Spanish border — and just about all of it is prime territory for second-home hunters. In and around cities such as Montpellier, Nimes, Carcassonne and Perpignan, you'll find fabulous food, world-class wines, picturesque villages and a mild climate. Large village homes or stone farmhouses in the countryside go for about $100,000 to $300,000, depending on the amount of renovations and upgrading that have been done. Charles Barbier, 60, of Maison de la France, a French tourist office in Montreal, bought a 280-sq-m (3,000-sq-ft) home on three hectares of land for just $100,000 two years ago. He is now in the process of spending $200,000 renovating it and wants to retire there one day soon. "You have to be a pop star to buy a villa, but a nice house on the countryside? Most of us can still afford that," he says. The absolute best buys might be the 110-sq-m-per-storey (1,150-sq-ft) village homes common throughout the region, according to The Best of International Living magazine. "You won't have to spend a fortune to renovate them as you would an old farmhouse," says writer Val MacQueen. "And you can still get a tiny village house on a narrow old street for around $18,000 (U.S.)." If that's not a great deal, we don't know what is. (Check out SunshineEstates.net for the whole story).