You can free up thousands of dollars of your current home equity by moving to PEI and investing in PEI real estate.
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 either in conventional financial instruments or invest in a second property here and enter the PEI real estate rental market – 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 2009 these are average home prices by province from CREA.
British Columbia $699,000
Newfoundland / Labrador $245,000
Nova Scotia $228,000
New Brunswick $174,000
Prince Edward Island $193,000
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 owned your home.
In any case you should call Matt Mackay, your PEI realtor for information on Summerside and the PEI real estate market and he will help you determine if this plan will suit you!