Moving To Greater Victoria? Invest Now to Move Later.....!!!
One of the best time tested methods to make your move to Greater Victoria much more affordable and profitable, is by investing in a Greater Victoria Property that either pays for itself now, has some real opportunity to appreciate in value over time or both.
Many people that are considering a move to Victoria at some time in the future, are concerned that by the time that they are ready to retire that the property values in Greater Victoria will have gone up and appreciated (much) faster than properties in their own current area.......
With Greater Victoria Property Values already having reach some of the highest average property values in the country, it is easy to see that many people would be concerned about their ability (in the future) to buy and or live affordably in our area.
So the solution is really to invest in to well priced good value real estate in the general location of your future destination, in order to gain all the advantages of the likely appreciation in value of properties in Greater Victoria.
Let me show you a simple example
If in your own area the historic average property value appreciation is say 5% per year over a period of say 5 years and your purchase price was say $ 250,000 and you where able to buy this property with 25% down payment hence with a mortgage of $187,500 with monthly payments at approx. $ 901.00 and you where able to rent this property at approx. $ 1,000 per month (just to cover the mortgage and taxes)
A similar property in Greater Victoria might cost you $ 400,000, our average value appreciation has been 6.8 % per year for the past 5 years (even though we have had some stale years) but we will use this % for our example.
Lats again assume that you use the same down payment of $62,500 which would result in a mortgage of 337,500 with monthly payments of approx. 1,622.00. for the sake of this example we will rent this home below Local market value rent at say $ 1,600 per month (for a bit of a shortfall)
Lets compare the outcomes of the 2 sample investments
| $ 250,000 property in your location | $ 400,000 Victoria Home | |
| Annual appreciation | 5% | 6.8% |
| value in 5 years | $ 319,070 | $ 555,797 |
| cash-flow +or - including property tax | $ 0 | - $ 13,000 |
| Gain over 5 years | $ 69,070 | $ 142,797 |
| Capital gains Tax on sale | likely 75% of you current tax rate on the $ 69,070 | $ 0, as this becomes your personal residence |
| Which Is the Smartest Way to Retire? | Our Pick |
You decide which way works best for you, but The Smart Plan to Move to Victoria seems Pretty Obvious to us.
If you are planning to retire to Victoria, planning your move well in advance is the way to go and NOW is the Perfect time to do so.
If you are concerned about vacancy rates, abuse, maintenance, repairs, etc. these apply to both locations, but locally Peter and Linda Pfann are affiliated with a company that also provides professional management services, and can assure you that your best interest will always be looked after.
Greater Victoria is the Retirement Capital of Canada, if relocating to the West Coast is in your plans, be sure to contact us as we will gladly assist you in any way possible.
Also Check out our other articles about moving to Victoria.
If you want to stay informed about available investment options, please follow this link and we will gladly create a personalized confidential and convenient property search that emails you with regular updates, we will not bug you and will always treat you with respect.
This Information was provided to you compliments of Victoria BC Realtors, "Peter and Linda Pfann", Certified Professional Consultant on Aging (CPCA)®. CPCAs are committed to providing exceptional service, and have supplemented their professional training by learning about the unique and changing needs of the 50+ population.
Make sure that the professionals serving you have taken the time and made the commitment to learn more about YOU! To find CPCAs in good standing in your area, go to www.CPCAcanada.com. or www.pfanntastic.com and www.victoriasm.com. To Find additional Victoria, BC, Canada, Senior Focused Resources, please visit "The Elder Friendly Community Network"
To Find out how we serve Greater Victoria Boomers and Seniors and their families with their real estate plans and needs in and around Greater Victoria BC, please call Peter and Linda Pfann in Victoria BC, Canada at (250)-213-9490 or info@pfanntastic.com.
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