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CENTURY21 Northumberland Realty

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SINGLE FAMILY HOMES MINI HOMES COTTAGES & SUMMER HOMES
LAND & BUILDING LOTS RECREATIONAL LOTS ACREAGES
COMMERCIAL MULTI-RESIDENTIAL FARM & AGRIBIZ
SUMMERSIDE & AREA NORTH QUEENS
WEST PRINCE CAPITAL AREA & EAST
SOUTH QUEENS EAST PRINCE

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VIEW LOCAL LISTINGS

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The PEI real estate market tends to be split into 2 categories. There is the local market, which consists of permanent residents looking for family homes and then there is the recreational market, consisting in large measure of summer visitors looking to combine vacation and real estate investment. There are however several other categories of PEI real estate purchaser. There is the retiree coming to PEI for the lower PEI real estate prices and the PEI real estate investor who purchases starter homes to rent to fellow islanders. There is also room to combine these ideas into one and move to Prince Edward Island when you retire using the equity in your current home to fund a PEI real estate purchase that is a mix of personal PEI home and investment rentals.

Should you decide to follow this route and you own a home in an area of higher real estate prices such as Toronto or Vancouver where the average prices can be around $500,000 - $700,000 and up, you would be looking for a primary PEI home in the $200,000 - $300,000 range plus the purchase of 2-3 rental homes which would account for the rest of your equity. In this way you have split up your PEI real estate investment into half for personal use and the other half to bring in an income which could be in the range of $2000+ per month. As you can see a PEI real estate investment such as this would provide a place to live and an additional income.

Selling PEI Real Estate and Property

What can you do to prepare your PEI home for showing? What small steps can be taken to increase your chances for a quick sale? Efforts to improve the appearance of your PEI home can contribute greatly to its marketing success. Small efforts such as replacing defective light bulbs; repainting damaged trim areas around doors and windows; cleaning the carpets; and adding finishing touches such as fresh flowers can make all the difference.

Step 1: Creating a Marketing Plan

Create a marketing plan for your PEI home that will help distinguish it in your local marketplace and attract buyers to your PEI property. This may include advertising in the newspaper, posting your PEI real estate listing on the Internet, holding an open house and more. We will use the CENTURY 21 Customized Marketing System to create a personalized selling program for clients. Its purpose is to sell PEI homes at the best price possible in the shortest amount of time.

Step 2: Setting the Price (evaluation of PEI real estate)

A key part of the PEI real estate marketing plan is setting the list price. If a home is priced to low, you may lose potential gains. If a home is priced too high, potential buyers may be scared away. To determine the best asking price We will review with you the cost of recently sold PEI homes as well as the asking price for PEI homes for sale currently on the market, evaluate the competition and study PEI real estate marketplace trends. We will use this information to help you reach the right asking price. It is also helpful to discuss other terms and conditions, such as timing and items that can be included with the sale of the home. Both of these can make your home more attractive to potential buyers.

Step 3: Showtime

Now it’s time to get your PEI home ready for the spotlight. Start with a good cleaning, then eliminate any clutter, add a fresh coat of paint and tidy up the yard. We will be happy to help you determine those jobs that will be most beneficial to the early sale of your home.

Step 4: Protecting Yourself

In some cases, a home sale can also be an invitation for danger. You should ask for identification and pre-approval letters as well as lock up valuables, make sure that pets are controlled when there is a viewing, and remove dangerous items. Remember "For Sale" signs bring in more than buyers, so ensure that children don't answer the door and talk to us for additional tips.

Step 5: Making the Deal

A buyer has made an offer – now it is time to negotiate. Rely on us to guide you through this process, helping you arrive at an acceptable price, terms and conditions. Once you have accepted an offer, help keep the deal together by meeting deadlines and criteria, including home inspections, appropriate buyer visits, scheduled deposits and other steps. In fact, during this period there may be a re-negotiation of the accepted offer price depending on the outcomes of these visits. As the closing nears, you may also need to perform repairs or do additional work to the house as agreed upon in your contract. In addition, you will need to have the house "broom clean" prior to the closing so that the buyer can complete a final walk through. When you finally arrive at the closing table, come prepared with the appropriate certificates and approvals. Once the money has exchanged hands and all the papers signed it's time to hand over the keys and concentrate on your next big project – getting YOUR new PEI home in order.

Buying PEI Real Estate and Property

Do you know how much money will be needed in order to close your PEI real estate deal? Besides the basic purchase price, buyers face legal fees and disbursements (plus GST), which are the out-of pocket expenses a lawyer/notary incurs. Then there are closing adjustments with the seller – taxes, rental income, condominium maintenance, and some utility charges. And don’t forget about the costs of arranging a new mortgage which can include application and appraisal fees. For resale PEI homes, these "exras" can easily add 1 1/2% to 2% to the basic purchase price.

Do you know what needs to be done after the deal is closed? Once your offer has been accepted the work has just begun. Future steps include arranging for monthly mortgage payments and PEI property taxes, finding the right insurance coverage, transferring your utilities and arranging for your move.

Avoid any surprises by having one of us , your CENTURY 21 real estate professionals guide you through the necessary steps. Rely on this expert advice to keep you informed and prepared as each step of your PEI real estate purchase unfolds.

It's just one more way that a CENTURY 21 real estate professional takes the anxiety out of buying your next PEI home.

Step 1: Defining What You Want

Start by creating a prioritized list of features you want to find in your short-list of PEI homes and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk to us, your PEI real estate professionals about where you want to live. Location is a huge part of any move. We will help you narrow down your choices by initiating you in regards to PEI real estate market trends and local PEI information such as neighbourhood statistics and community links.

Step 2: Figuring Out How Much PEI Real Estate you can Afford

Now that you know what you want, it's time to see what type of PEI home you can afford. You can start by crunching the numbers yourself using our affordability calculator and mortgage calculator.

When you’re ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much you can spend on your PEI home purchase and what your monthly payments will be. Second, it tells the seller that you can afford to buy their home.

By definition, a pre-approved buyer has an approved mortgage, subject to an appraisal of the PEI property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.

Step 3: Shopping For PEI Homes

Once you know what community you'd like to live in and have an idea of how much house you can afford, its time to start checking out actual PEI real estate listings. Beginning this search online can help save you time since it can help you target PEI homes that meet your search criteria.

Next, begin visiting the PEI homes on your short-list. Ask us, your PEI realtors, to arrange visits and attend open houses that are in your target area and price range. When comparing homes, make sure to look at all aspects of the your PEI real estate choices. Is property tax approximately the same? Are both houses renovated? Do they both have the same number of bedrooms and bathrooms? Are both houses located on the same or similar streets? Does either house have any encumbrances?

Step 4: Making An Offer on a PEI Property

Once you choose one of the PEI homes, you need to make an offer. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as a PEI realtor, negotiate the offer. If you have any personal interaction with the homeowner, don’'t give out any information about your move, your current housing status, financial status or your feelings about their property – positive or negative. This could hurt you in future negotiations.

Step 5: Inspection & Insurance for PEI Homes

After your offer is accepted you will need to set up, coordinate and interpret various inspections, including insect, radon, building quality, oil tank, title, etc. You will also need to arrange for homeowners insurance and finalize the mortgage on your PEI real estate purchase.

This is a major step in the buying process and there are many potential problems that can be discovered during this period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few. These problems happen all the time. The difference between closing on your dream PEI home and starting the process all over again is what occurs during the negotiations between you and the seller. We can help make these discussions go more smoothly. You will also have the option of a "walk through" before the closing. This is your last chance to make sure that all of the items that you have agreed upon were completed to your satisfaction.

Step 6: The Final Closing

Before you arrive at the closing, make sure all the necessary paper work and deposits have been completed. If the mortgage, title work, homeowners insurance and other items necessary under local PEI laws are not completed and brought to the closing table, the closing may not happen on time – depending on the contract, this could result in further action including financial penalties and even the loss of your rights to your new PEI home.

Once you close, it's official – you own your dream home on PEI! But there might be a few things you want to do before you lay out the welcome mat. These include arranging for an alarm system, turning on the electricity, subscribing to the local paper, cleaning or replacing the carpet, arranging for lawn services, etc. This could also be a good time to make some needed renovations.

Non Resident PEI Real Estate purchases. Non-resident PEI real estate purchases are not a problem providing some guidelines are followed to meet government approvals. Cases vary based on size, location and intentions of future usage of the PEI real estate. In general, any individual can own up to 5 Acres and 165 feet of water frontage without seeking governmental approval. You can scroll to the foot of this page to the Q&A section to find out more about IRAC and non-residential property purchases on Prince Edward Island.

Real Estate TV is here! With it comes a plethora of shows designed to help the real estate buyer and especially the first time real estate buyer to navigate the obstacles of entering the world of home ownership.

The process of making the single biggest purchase of your life can be daunting one. Certainly even a PEI real estate purchase still requires that you go through the same steps as if you were buying a more expensive property in Toronto. The first step we recommend is securing a pre-approved mortgage. This means that your bank or financial institution has looked at your finances and determined just how much you can afford to spend. This will create a budget for your PEI real estate search and will ensure that you don't waste time or fall in love with a PEI home or property listing that you can not afford and it also gives weight to your offer when you find the PEI property that you want to offer on.

PEI real estate is amongst the lowest priced property in Canada. You can sell a home almost anywhere else in Canada and move to PEI, purchasing a PEI home and, depending on the equity you have built up in your current home, either live mortgage free or use the money to invest in conventional financial instruments or a second property here entering the PEI real estate rental market and become a landlord. Either way your retirement security is better guaranteed than staying in the area you are currently and have your money tied up in your family home which by now you will most likely have outgrown.

To give you an idea of the amount of re-investable equity you may have tied up, this is a table of home prices across the country. Compare the average with the cost of PEI real estate. PEI homes are very much less expensive than most parts of the country. As of 2018 these are average home prices by province as well as the percentage increase or decrease from the previous year as supplied by CREA.

British Columbia$730,000+ 0.2 %
Ontario$578,000– 13.0 %
Alberta$387,000– 4.9 %
Quebec$297,000+ 3.1 %
Manitoba$296,000+ 0.4 %
Saskatchewan$288,000– 6.5 %
Nova Scotia$249,000+ 1.6 %
Newfoundland / Labrador$246,000– 3.7 %
Prince Edward Island$230,000+ 18.4 %
New Brunswick$178,000+ 10.2 %
Canadian Average$495,000– 11.3 %

As you can see PEI real estate is the bottom of the pack in terms of price, but not in terms of value. The difference in price between a home in Vancouver and a PEI home can be $500,000. Let’s just look at this in the most simplistic way. If you owned your Vancouver home you could buy a comparable PEI Home as well as 2 to 3 other pieces of PEI real estate, PEI homes that could generate rents of $1800 – $2400 per month which represents a good income based on being mortgage free. Obviously the advantage a PEI real estate investment can bring you depends on where you currently call home and the amount of equity you have built up over the years you have been purchasing your home.

Come back here regularly to see our NEWEST HOME LISTINGS.

259 MAYNARDS LANE Birch Hill C0B1B0
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$149,000201921547
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23 BRANDAN CARTER  Summerside C1N0B6
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115 SUMMER STREET Summerside C1N3J3
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135 VICTORIA ROAD Summerside C1N 2G4
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242 POPLAR STREET Alberton C0B1B0
242 POPLAR STREET
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70 WALLYS LANE Cape Traverse C0B1X0
70 WALLYS LANE
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$277,900201921153
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70 WALLYS LANE Cape Traverse, C0B1X0
70 WALLYS LANE
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$169,900201921151
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1695 NORTH FREETOWN ROAD Lower Freetown, C0B 1L0
1695 NORTH FREETOWN ROAD
Lower Freetown, C0B 1L0
$359,000201920729
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1322 COUNTY LINE ROAD Shamrock, C0B1N0
1322 COUNTY LINE ROAD
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$549,900201920659
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2090 GASPE ROAD Howlan, C0B1V0
2090 GASPE ROAD
Howlan, C0B1V0
$186,900201920225
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133-135 WALKER AVENUE Summerside C1N 6G3
133-135 WALKER AVENUE
Summerside C1N 6G3
$347,500201920210
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35 MCGEE DRIVE Summerside, C1N 4B5
35 MCGEE DRIVE
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$177,500201920164
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26 CENTURY COURT Summerside, C1N 6N6
26 CENTURY COURT
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$299,900201920146
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11214 ROUTE 6 Clinton C0B 1M0
11214 ROUTE 6
Clinton C0B 1M0
$345,000201920107
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503 MACEWEN ROAD Summerside, C1N5Z1
503 MACEWEN ROAD
Summerside, C1N5Z1
$260,000201920077
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70 BOYLE CRESCENT Cavendish, C0A 1E0
70 BOYLE CRESCENT
Cavendish, C0A 1E0
$132,500201920030
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91  CENTRAL STREET Summerside, C1N 3L2
91 CENTRAL STREET
Summerside, C1N 3L2
$349,000201919941
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381 KELVIN ROAD Kelvin Grove, C0B1M0
381 KELVIN ROAD
Kelvin Grove, C0B1M0
$498,900201919791
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31 GRANVILLE STREET Summerside, C1N2Y9
31 GRANVILLE STREET
Summerside, C1N2Y9
$299,000201919719
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50 LOCKWOOD DRIVE Summerside, C1N 4R5
50 LOCKWOOD DRIVE
Summerside, C1N 4R5
$219,000201919707
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1729 PETERS ROAD Montague, C0A1R0
1729 PETERS ROAD
Montague, C0A1R0
$75,500201919655
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59 WOODLEIGH DRIVE Kensington, C0B1M0
59 WOODLEIGH DRIVE
Kensington, C0B1M0
$97,000201919266
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13 BARCLAY ROAD O
13 BARCLAY ROAD
O
$84,900201919043
Bedrooms: 3
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310 CENTRAL STREET Summerside, C1N 3M9
310 CENTRAL STREET
Summerside, C1N 3M9
$190,000201918421
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Tips to get a Mortgage to buy PEI Real Estate

Most Islanders aspire to own their own PEI home. You probably do too if you are reading this, in fact if you are visiting PEI real estate websites such as this. You may find that you qualify easily for a mortgage but should that not be the case, here is some information about securing a mortgage and repairing your credit so that you qualify to make a PEI real estate purchase.

Get your Credit Report - Understand It - and Know Your Credit Score and its Significance in terms of qualifying to purchase PEI real estate. Most people dont know what is on their credit report and the first time they get worried is if they are turned down on a credit application. Plan your financial health the same way you would your dental health. Get a checkup and that means get your credit report. Your credit report tells who you owe what money too. It tells if there are any outstanding claims against you as well. If you know the score you can have inaccuracies corrected before you attempt to purchase PEI real estate. This part of your credit report is free. Your Credit Score, which is a number between 300-900 is not. You will have to buy this part of your report (usually just over $20) from a credit reporting agency such as Equifax or Transunion. If your score is less than 600 you will have a harder job securing PEI home financing and the interest rate on your PEI real estate purchase if you do will be higher - so start repairing your credit. The possibility of being able to get into the PEI real estate market and purchase a PEI home depends very much on your credit. Your bank or financial institution will look very carefully at your credit history when deciding if you qualify to borrow on a PEI real estate investment.

Paying all your bills on-time will smooth the path to PEI real estate ownership! Lenders don't like lateness; so don't be late EVER! Make sure that you have a convenient method such as online banking or bill paying at your ATM to ensure that you can easily pay your bills in a timely manner. If you have to be late be sure to talk to creditors prior to the incident and get their co-operation ensuring that they don't file a report with a credit agency. Credit reports filed for late payment will negatively affect your creditworthiness to borrow on a PEI real estate purchase and delay PEI home ownership.

Saving Money and building a Down Payment will increase the likelihood of investing in PEI real estate and buying your PEI home! Lenders like to see that you have savings. It shows financial responsibility as well as financial capability. You have been able and had the foresight to put a portion of your monthly income away so that you can make a PEI real estate investment. You will need money in the bank for closing costs, down payment and as a contingency fund should anything unforeseen happen after purchasing your PEI home, whether repairs, loss of income, sickness etc.

Pay Your Current Rent on Time increases the chances of PEI home ownership. Make sure that you pay your rent on time, as well as any utilities. Ensure that you have made timely rent payments for at least a year. If you are in a lease, make sure that if you are going to break that lease that you pay any penalties that the lease imposes. Failure to pay these could result in a negative credit report in the same manner as any other default in payment and this will also impact in a negative way on your chances for PEI home ownership and making an investment in PEI real estate.

Reducing Your Credit Card Debt has a positive impact on the chances of making a PEI real estate purchase and PEI home ownership being in your future! With an average of $2000 in credit card debt per household, lenders are seeing increased credit card reliance as a warning sign. Try to pay off as much credit card and other consumer debt as you can. Additionally, do not borrow for a new car or any major purchase before applying for a mortgage as this will change your financial debt ratios and decrease your chances for a successful PEI real estate purchase. Make sure that other major purchases are done after your mortgage is in place and your purchase has closed. Be aware that lenders may not follow through on a pre-approval if your financial situation changes and this can destroy your chances to make a smart PEI real estate investment and enter the ranks of PEI home owners.

What to do if your Credit is not currently good enough to qualify to make that PEI real estate purchase. If your credit score is substandard you may need to consider a 'bad credit' mortgage. These are mortgages carried by lenders willing to accept the higher risk that you represent in exchange for a higher return (interest rate) than a customer with a higher credit score would get. However you will still get better terms if you have a demonstrable long term work history (long time with same employer), a good income to debt ratio, and/or a substantial down payment. All the preceding factors can help a bad situation when buying PEI real estate.

You should choose your mortgage lender with some care and avoid lenders who charge a high fee for securing your mortgage that is added to the mortgage principal. You do not want to add to the front end of your PEI real estate purchase.

If you are planning to re-finance your PEI real estate purchase as your credit becomes better you should consider the penalty for early payment and other re-mortgaging costs against the savings to be had at the lower interest rate. This should be considered when choosing a term for your mortgage as well.

While it is possible to purchase PEI real estate even with less than stellar credit or simply a lack of credit history (in the case of young people) there are certainly pitfalls to avoid when trying to enter the PEI real estate market with poorer credit.

Mortgage Calculator

HST(15% on PEI) is to be paid on new residential builds, and most all raw land. A lived in residential home is exempt from HST. When doing a real estate transaction, there is only HST on the commission amount only which is normally paid by the vendor (seller). Always talk to your lawyer to find out for sure what you qualify for.

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit - a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief.

In Prince Edward Island, the land transfer tax is calculated using the greater between a home's purchase price and its assessed property value. The PEI land transfer tax rates are as follows:

PEI land transfer tax example calculation
If you are purchasing a home for $200,000, which is assessed to be $220,000, your land transfer tax will be:

$220,000 assessed value 1% tax rate = $2200 land transfer tax

First-time home buyers are exempt from the land transfer tax if the purchase price of their property is $200,000 or less and if the property is occupied as a primary residence if they meet the following criteria:

The purchaser must be a Canadian citizen or permanent resident who has:

If there are more than one purchaser, both purchasers must be first-time home buyers.

This happens frequently with first time home buyers. Even if you think your credit history is less than perfect, talk to a mortgage specialist/lender. They are there to help you and to get you into your first home. In addition, know your credit rating. You can buy your credit score at equifax.ca or transunion.ca. Some banks have partnered with a credit bureau and you can access your credit score right from your online banking.

There are different options available depending on how much of a down payment you can afford. There is a conventional mortgage which is 20% down and low down payment mortgage(minimum 5% down). Low down payment mortgages require mortgage default insurance. The premium can either be paid up front or added to the amount you are borrowing. First time home buyers are eligible to use up to $25,000 in RRSP savings per person for a down payment on a home. The withdrawal is not taxable as long as you repay it within a 15 year period. To qualify, the RRSP funds you plan to use must have been in your RRSP for at least 90 days.

Customize your amortization period depending on how much you can afford. Paying off your mortgage sooner saves you interest costs, while a longer amortization period reduces your regular payment amount and gives you more room to manage your cash flow.

While rates are a valid consideration, the different types of mortgages, their payment structures, terms and flexibility will have a much greater impact on the overall cost of homeownership. Fixed rate mortgages, variable rate mortgages and combined fixed and variable mortgages are offered as choices. Many experts believe variable rate mortgages offer the greatest potential for long-term savings on interest costs.

You may be under or over-estimating how much you can afford to pay for your home. There are many online mortgage calculators that you can enter your income and expenses and they will calculate the maximum mortgage payment amount you can afford each month.

Knowing the amount you will be approved for gives you the confidence to begin looking at homes within your price range. We, real estate agents, find this to be so much more helpful when trying to help you find the home you can afford. It is very hard to have clients who were not pre-approved and find a house they think they can afford and they talk to their mortgage specialist and they find out they cannot afford that home. They are very disappointed. Get pre-approved and your pre-approved mortgage rate will be guaranteed for 120 days.

Use the Ratehub Payment and Affordability Calculators to help you budget for your home purchase.

Mortgage Affordability Calulator
Mortgage Payment Calulator

After finding the home of your dreams, picked out your mortgage options and you are ready to make an offer, make sure that you don't forget your closing costs. It's fairly safe to assume you'll need an additional 1.5% of the purchase price to cover closing costs including: home inspection, lawyer fees, land transfer tax(if first time home buyer, you may be exempt from this tax), property insurance, moving costs and looking at ongoing costs including heating, electricity, repairs and taxes.

If you're renting, you may dream about owning a home of your own - a place to furnish and decorate as you like, to set down roots, to enjoy a great neighbourhood and to entertain friends and family.

But you may be uncertain whether you're ready to make your move from renting to buying, especially if you haven't started saving. Fortunately, with today's low mortgage rates and more flexible down payment requirements, your first home may already be within your reach.

You may have many reasons for wanting to own your own home. You may be getting married, leaving your parent's home, moving to a new job, and having children. You may want a secure, permanent place for you and your family. Whatever your reason, owning your own home can also be a good investment.

The long-term investment value of a home remains very good. Your home may be the single biggest investment you'll ever make, one that could pay off significantly in the long run.

The value of the average Canadian home has been steadily increasing. So the earlier you can redirect the money you currently pay in rent into paying down a mortgage, the faster you'll start building equity in your home. Low inflation and low interest rates, demographics and immigration are all factors supporting the belief that a home will continue to be a good long-term investment, at least in most parts of Canada.

Perhaps more than ever, location is the key factor driving price increases. In a strong housing market, homes in particularly desirable areas are more likely to see above-average price increases. In weak housing markets, these homes tend to retain their value better.

Although no one can predict where prices will be 25 years from now, the average price of a home in Canada has risen substantially in the past 25 years, making a home investment one of the best investments available today! At the end of the day, one of the biggest considerations isn't the market, mortgage rates or investment value, but rather your desire to enjoy the comfort and privacy of owning your own home. The best time to stop renting and start owning is when you are ready.

Mortgage Affordability Calulator
Mortgage Payment Calculator

In order to ensure that you are only looking at properties that you are likely to receive mortagage approval for you can use the following payment and affordability calculators available from Ratehub.

Mortgage Affordability Calulator
Mortgage Payment Calulator

Before any citizen of Prince Edward Island can get a building permit, there must be a successful Perk Test completed. This perk test is solely concerned with the type of soil a PEI property has in regards to a Septic System. The soil should be such that there is good drainage in the septic field that is behind the Septic Tank area, or, in other words, a good Perk Test measures the ability of the soil to absorb liquid.

Unfortunately, not all soils can absorb wastewater or purify it. Sewage disposal systems that are installed in unsuitable soils usually malfunction by leaking raw, untreated sewage to the soil surface or a roadside ditch, or by contaminating the groundwater. The sewage may contain deadly bacteria and viruses. It is expensive to remedy the odour problems and potential health hazards that result from the use of sewage disposal systems in unsuitable soils, so it pays to investigate.

To do a Perk Test, a hole of about 4 feet is dug by a backhoe in the area of the property where the septic tank and septic field will be located. Then a Prince Edward Island government official will get into the hole and analyse the profile of the soil at different depths in the profile. The PEI government official knows by training what a good soil profile should look like. He or she then will make a decision as to whether the Perk Test is Category 1 soil (The best soil test), or Category 2 soil, or Category 3 soil, etc. Most properties in Prince Edward Island will be either Category 1 or Category 2 soil.

In conclusion, it is mandatory that a Perk Test be done on Prince Edward Island before a Building Permit will be issued by the PEI government. When buying Raw Land on PEI, it is imperative that a Perk Test be done on it by the Vendor or Purchaser before the closing date of the offer agreement to protect the Purchaser.

604 WATER STREET Summerside C1N4H7
604 WATER STREET
Summerside C1N4H7
$249,500201921392
Bedrooms:
Bathrooms:
Lot Size: acre(s).79
Living Area: (sq. ft.)

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602 WATER STREET Summerside C1N4H7
602 WATER STREET
Summerside C1N4H7
$475,000201921385
Bedrooms:
Bathrooms:
Lot Size: acre(s).79
Living Area: (sq. ft.)

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 ROUTE 133 Ellerslie, C0B1J0
ROUTE 133
Ellerslie, C0B1J0
$29,999201920229
Bedrooms:
Bathrooms:
Lot Size: acre(s)9
Living Area: (sq. ft.)

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Lot 13 CHATEAU LANE Hope River, C0A1E0
Lot 13 CHATEAU LANE
Hope River, C0A1E0
$45,000201920192
Bedrooms:
Bathrooms:
Lot Size: acre(s)2.47
Living Area: (sq. ft.)

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Information for those considering purchasing property on PEI.

259 MAYNARDS LANE Birch Hill C0B1B0
259 MAYNARDS LANE
Birch Hill C0B1B0
$149,000201921547
Bedrooms: 2
Bathrooms: 1
Lot Size: acre(s).26
Living Area: (sq. ft.)

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70 WALLYS LANE Cape Traverse C0B1X0
70 WALLYS LANE
Cape Traverse C0B1X0
$277,900201921153
Bedrooms: 2
Bathrooms: 1
Lot Size: acre(s).82
Living Area: (sq. ft.)768

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70 WALLYS LANE Cape Traverse, C0B1X0
70 WALLYS LANE
Cape Traverse, C0B1X0
$169,900201921151
Bedrooms: 2
Bathrooms: 1
Lot Size: acre(s)0.4
Living Area: (sq. ft.)768

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70 BOYLE CRESCENT Cavendish, C0A 1E0
70 BOYLE CRESCENT
Cavendish, C0A 1E0
$132,500201920030
Bedrooms: 2
Bathrooms: .5
Lot Size: acre(s).34
Living Area: (sq. ft.)480

More about this Property

Yes, any investor in the world can buy a PEI Real Estate property. In certain circumstances, when a non-resident of PEI is acquiring large acreage on PEI, the I.R.A.C. (Island Regulatory and Appeals Committee) may have to approve the purchase; however, in the vast majority of cases, approval is granted to the buyer. Every non-resident buying in PEI can purchase 5 acres and 165 feet on any waterfront property, and legally NOT have to go through the I.R.A.C. process. Two people can buy 10 acres and 330 feet water frontage, etc.

A non-resident person or corporation, or a resident corporation must make application if the person or corporation will have an aggregate land holding:

A non-resident person who acquires a land holding by gift, devise or inheritance from a spouse, sibling or direct descendent or ancestor is exempt from making application.

A person or corporation can hold an aggregate land holding of no more than:

An application for a land purchase must include the following:

Cheques should be made payable to the Island Regulatory and Appeals Commission and the completed application is submitted to the Island Regulatory and Appeals Commission.

Generally 3-4 weeks is required from the date an application is filed to the date a decision is rendered. However, depending on the complexity of the application, additional time may be required.

The Order confirming Government's decision is usually issued within one week to 10 days of the date of the decision and should be registered with the deed.

When an application is denied or is approved but no part of the purchase has been or will be completed, the Commission may refund up to 50% of the application fee upon application. An application must be made to the Commission within six months of the date of the decision and must include:

PEI charges 50% more in property taxes to owners who are not permanent residents. In order to get the lower tax rate, one must reside in PEI for 183 days consecutively.

The issues involving land ownership and land use in Prince Edward Island began in the early history of the province. The Island was initially divided into sixty-seven 20,000-acre lots or townships. These lots were allocated in advance of settlement to a relatively small elite group of absentee proprietors. Over time, the land was purchased from the absentee landlords and returned to local ownership.

Issues associated with absentee landlords resurfaced again in the 1960's, as non-residents began investing in local real estate throughout the province. As a result, substantial amounts of land in the coastal areas fell out of the control of local residents. In 1972, Government introduced amendments to the Real Property Act to restrict the purchase of land by non-residents.

In 1981, an application by a non-resident corporation to acquire 6,000 acres prompted public concern over the perceived impacts of land ownership distribution and its implications for the future. Some viewed this as giving pre-eminent control of the province's agricultural industry to one company. This led to the introduction of Bill 37 - the Land Protection Act in 1982.

If you would like more information you can visit www.irac.pe.ca

There is a strong rental market on PEI. Many islanders rent their homes and if well treated as tenants they tend to stay for long tenancies. When investing in PEI real estate for rental purposes you should keep in mind the budgets that most renters will be working within. Basically make sure you are buying PEI real estate property that will be priced to allow for less expensive rentals. It is not that the there are not people who will rent larger more expensive PEI homes but they are harder to find. You should purchase PEI real estate in the range of $75,000-150,000 when you are considering becoming a landlord. Additionally you might consider purchasing multi-unit rentals as they tend to be rentable at lower, more affordable rates as well as offering multiple income streams that aren't dependant on one rental. Generally multi-unit rentals are easier and more economically viable to rent.

If the average PEI home purchased for rental and as an investment in PEI real estate were to rent from $500 plus utilities to $800 including utilities then you would be at approx $300 to $400 per month added to your income. In addition you are building equity in the final sale of your PEI real estate holdings. You might consider it possible to add $5 per thousand dollars of investment equity to your retirement income by this means. Before embarking on such a program you should contact a licensed PEI real estate agent and Century21 for more information as this is just a basic outline of what the PEI real estate market and an investment in PEI real estate may be able to do for you.

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Office (Sside):902-436-2265
Office (Chtown):902-201-9850
Fax:902-436-2687
Toll-free:888-701-0021
Email:office@century21pei.com
629 Water St East, Summerside PE C1N4H8
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