Search by Price, Area, Type of Property or Listing Realtor
Century21 Northumberland Realty, 629 Water St., East, Summerside PE C1N 4H7 Phone: 902-436-2265
Retire to PEI
PEI is the smallest province in Canada having a population of just under 140,000 full-time residents. This population swells to over a million in the summer as PEI is a popular place to holiday as well as to own a summer home. Many New Englanders, people from the other Canadian Maritime provinces as well as Ontario and even as far away as Alberta and British Columbia come to PEI for the summer.
PEI is perhaps best known for the growing of potatoes and the red-haired orphan Anne of Green Gables. Certainly life in PEI is peaceful, the people are friendly and there is a balance to life here that lends itself to retirement. PEI has all the usual amenities of modern life. We have a full range of big-box stores, restaurants, and activities. Summerside and Charlotttetown both have fitness facilities with competition sized pools, hockey rinks and more, as well they have hospitals and other medical facilities and a full range of groups and clubs to suit most interests. The arts are strong on PEI with theatre, concerts, and art galleries. Volunteerism is alive and well on PEI and if you were to retire to PEI you would find abundant opportunities to keep busy and feel good.
What about an extra $1000 per month to add to your retirement income? Here are the average house prices for each province in Canada as of Sept 2009 (Canadian Real Estate Association)
|Newfoundland / Labrador||$204,000|
|Prince Edward Island||$142,000|
Do you notice that PEI has the lowest housing prices in Canada. PEI compares very favourably with most American states as well. Only states such as Wyoming, North Dakota, Kansas, Missourri, Indiana and Mississippi list homes in lower price categories than PEI. Certainly Washington, Oregon, California, Nevada as well as New York, Virginia, the other New England States and Florida all show home pricing more comparable to British Columbia and Alberta.
So if you currently own a home in any of the other provinces and many of the US states you could sell your home and move to PEI. You would be able to buy into the PEI real estate market for as little as 1/2 to 1/3 of the value of your previous home and invest the rest. Let's take this province by province and do the calculations.
|British Columbia||$332,000||$2150/month for 20 years|
|Alberta||$205,000||$1300/month for 20 years|
|Ontario||$185,000||$1200/month for 20 years|
|Saskatchewan||$91,000||$750/month for 13 yrs|
|Quebec||$88,000||$750/month for 13 yrs|
|Newfoundland / Labrador||$62,000||$500/month for 14 years|
|Manitoba||$61,000||$500/month for 14 years|
|Nova Scotia||$51,000||$500/month for 10 years|
|Not sufficient difference for New Brunswick|
|Western US homeowners and homeowners in the New England States can expect differences similar to Alberta and BC.|
These figures assume an annual rate of return of 5% which is attainable from many investment instruments. Additionally if you invested the extra money in a PEI rental home you would have an income of $500 per month or more and be building equity at the rate of inflation or more.
An example: Even at a lower equity difference occasioned by a move from Manitoba at $61,000 this would provide sufficient money to purchase a Summerside starter home which would make an excellent rental worth 400-500 dollars per month. Additionally you could expect a rate of return of approximately 3-4% per year in equity building.
If your freed up equity occasioned by your move to PEI was in the higher range as discussed above you might also consider reading our article on $3000 per week from a Summer Home rental as you would have sufficient capital to enter this market.
It should also be noted that the calculations above are based on average prices. You may be able to free up equity greater or lesser than the averages depending on the relative value of your property and whether you wished to go up or down the market scale when you purchased here. Also affecting this equation is whether your current home is mortgage free. While these calculations assume that your home is mortgage free, even if you do owe on your home you would be able to reduce or eliminate your mortgage in the areas that produce a smaller freed-up equity and if you live in areas like Alberta and BC you would most likely be able to pay off your mortgage and still buy a PEI property without a mortgage.
Whatever your situation you are more likely to retire in a better financial state if your living costs are lowered and the cost of purchasing a PEI home is definitely lower than anywhere else in Canada and many areas of the US. Give us a call today and we will discuss this further and help you see how retirement to PEI would enhance your financial status and your retirement lifestyle.