BC Sunshine Coast real estate by Menno at Royal lePage Real estate on the BC Sunshine Coast

Lamenting the impossibility of ever being able to afford a home in Vancouver, many people who earn excellent incomes see themselves as tenants, now and forever more. Have you heard of the nearby Sunshine Coast yet?

To most people, it's quite important to own a home, at one point in their lives; rather sooner than later. It may also be an excellent long-term financial decision.

Even with the slight price adjustments in the Vancouver real estate market, prices of homes in the Vancouver area have gone straight through the roof. This, while mortgage rules have got more stringent. The result is that many people will have a hard time qualifying. One solution that may work for you is a quick crossing to the Sunshine Coast, where houses are affordable and the lifestyle is friendly and much less hectic. Look at this article, as an example: http://www.vancourier.com/Paradise+found/7238795/story.html

You’ll have great choice and selection on the Sunshine Coast. Do you like a property with a view? A house on acreage? An affordable town home close to the village centre; or perhaps you prefer ocean frontage? The Sunshine Coast has choice properties available for everybody. It’s hard not to like the Sunshine Coast. We are surrounded by great beaches with magnificent views. What a lifestyle this is: clean air, wildlife, forests and relaxed people.

Now, if you prefer your own city apartment with nearby street noise, large amounts of people around and a general shortage of land and space, then the Sunshine Coast may not be the place for you. To many people, such a choice is a no-brainer. If you prefer land and spaciousness to the city lifestyle, then the Sunshine Coast has a special offer for you. Since homes in Vancouver are expensive, an actual house is out of reach for most people. If an apartment might be all that’s financially possible in the city, you could have a home on its own land right here – for the same price.

If you don't want to be crippled by mortgage debt for the next 25 years of your life, it might be smart to look at some out-of-the-box real estate opportunities.

NOTHING FOR SALE FOR $350,000

Homes in Vancouver now cost 11.2 times median family incomes — a ratio that measures the median home price to median annual household disposable income. That’s more than double the current Canadian average of 5.1 times income. Of course, the figure is skewed by a large number of sales in the upper price ranges – it doesn’t take away from the fact that Vancouver is pricey.

Many analysts know to point out that Chinese demand for houses in Vancouver has been strong. This phenomenon rides on the back of looser travel restrictions for Chinese nationals, as well as stricter buying rules and extremely high prices in China. To Chinese purchasers, Vancouver prices appear to be just normal.

Although Vancouver receives continuous honourable mention as one of the world’s most livable cities, it also rates as one of the least affordable larger cities in the world, behind Hong Kong and Sydney. These two other cities are also strongly influenced by Chinese demand for real estate.

It's great to live in a nice home - it's even better if the surroundings of that home are also to your liking. It's the whole package that makes your lifestyle choice.

QUALITY OF LIFE FOUND

Vancouver’s land-use restrictions and high quality-of-life rankings can justify elevated prices. The city’s beautiful location brings with it some downsides: it’s almost impossible to build houses in the mountains or in the ocean. Adding to that the confines as dictated by the US border and one begins to understand why the short supply is beginning to dictate the prices.

If interest rates in Canada stay low while foreign investment continues, the prices could go even higher. It is, at the same time, interesting to note that virtually all upper-end purchasers are cash buyers. They do not care about mortgage rates – although substantially higher deposit rates could somewhat dissuade them from investing in real estate.

Super low interest rates help to make houses more affordable; combining that with a much better home starting price makes for a win-win situation.

INTEREST RATES HAVE SOMETHING TO DO WITH THIS?

Due to ultra-low interest rates, affordability isn’t a major issue yet, with first-time buyers allocating about one-third of their disposable income for mortgage payments, as has been the norm for many years. Even a moderate increase in interest rates will slow a section of the market in coming years.

While prices in Vancouver have been going up and down, we’ve seen much more stable prices on the Sunshine Coast. Does that mean that our pricing boom is yet to come? Does that mean that if the Vancouver prices begin to soften that we, on the Sunshine Coast, will see much less softening? Either way, investing in Sunshine Coast real estate might be a smart way to re-leverage oneself. We all want to gain, we all want to “win”. If you can combine that with living in a friendly and scenic community, so close to the city … isn’t that the Best of Both Worlds (a win-win situation)?

When prices go up, some people cheer, others don't. When prices go down, the responses reverse. On the Sunshine Coast, we see great market stability - to everybody's benefit.

READ MORE on market conditions on the BC Sunshine Coast in the following blog articles:

Becoming a Sunshine Coast home owner: http://www.mennorealty.ca/Blog.php/ownership-benefits
What should you know about your credit score: http://www.menno.ca/?p=19770

Sunshine Coast homes of all sorts: http://www.mennorealty.ca/Blog.php/its-diversity

What are “illegal rentals” really: http://www.menno.ca/?p=19787

Sunshine Coast real estate bargains: http://www.mennorealty.ca/Blog.php/tremendous-bargain

Sunshine Coast is small-town territory: http://www.menno.ca/?p=19905

Please feel welcome on the BC Sunshine Coast: http://www.menno.ca/?p=19944

Getting out of a mortgage contract at a price: http://www.menno.ca/?p=19890

Loans of various kinds to pay for that purchase: http://www.menno.ca/?p=19812

A home in Vancouver or on an island: http://www.mennorealty.ca/Blog.php/an-island-maybe-not