A Decade to Remember for Greater Victoria Real Estate
If, after a decade of living in his home, an owner sells today, hoping to bank some cash, he’ll have to move to a lower-cost area, downsize his home, or both.
Many of us can attribute our increasing net worth largely to this unrealized, historical increase in the value of our home. But, will this trend continue for the next decade? Not very likely.
In Canada today, it is estimated that some 43 per cent of total household income is needed by an average family solely to finance their mortgage, property taxes, and utilities. In British Columbia this figure exceeds 70 per cent. In Vancouver, it’s a horrendous 92 per cent. For Greater Victoria, a specific number is not available, but since our home prices are second only to Vancouver’s, we know that our costs are much higher than the Canadian average. Such costs are clearly not sustainable.
A retired corporate executive, enjoying post-retirement as a financial consultant, Peter Dolezal is the author of three books. His most recent, the Smart Canadian Wealth-Builder, is available at Tanner’s Books.