My input on the topic and what i did when I had the same thought cross my mind when I was 25:
I Bought near Minden in 1997, 80K, now assessed at 140K, on the open market it would probably go for closer to 200K. It will be paid off in less than 8 years from now (HINT: bi-weekly payments). Small lake, year round road, winterized cottage. Since the original purchase I have drilled a new well, renovated the living room, built a deck and purchased 25 acres of vacant land directly across the road. The funds to do all of this have come from re-financing and taking advantage of the appreciation of the original purchase. I've never rented it for income either, that just spells headache to me.
Do I regret having no home to call my own in the city? Slightly, but the enjoyment I have had and will have in the future at my cottage more than makes up for that. I've been fortunate to have friends in the city that I can stay with for less cost than renting on the open market. So once the cottage is paid for, I'll be looking to buy in the urban jungle (I used my RRSP's for the cottage so I'm SOL on that front).
IMO, as far as a long term investment (10+ years) you can't beat real estate. For short term (if you want to own a home within 10 years) I would rent a cottage for vacations. Keep in mind that with the cost of urban housing you may be house poor with most $ going towards a 300K+ mortgage.
The market is a moving target. I would have thought prices would have stabilized before now but you keep hearing of price gains. talk to some agents or browse listings in the potential markets, they're your best source for up to date info.
It realy is a personal decision. If you're the kind of person who doesn't like being stuck in the city on weekends and you're going to use it consistently, it makes sense, I suffer withdrawall if I'm away from mine for more than 3 weeks.
Heading there in 4 hours. Cheers
jac