More information on the PEI Real Estate Market and retiring to PEI

As mentioned before the PEI real estate market affords the owner of a home in other parts of the country a chance to capitalize on the equity they have built in their home. PEI is known as the setting of the Lucy Maud Montgomery saga of the life of Anne of Green Gables and of course it is also known for the cultivation of potatoes. PEI life is peaceful but there is still a vibrant community and lots to do. PEI has the usual trappings of modern life including fitness facilities with competition sized pools and hockey rinks, a complete island medical system with modern hospitals and access to more in Halifax as well as a full range of restaurants, stores, theatres, art galleries, and special interest clubs and associations. You will find plenty to do and should you want a little extra work in a good cause there is a strong volunteer community as well.

PEI real estate investment for your future

Here are the average house prices for each province in Canada as of Sept 2009 (Canadian Real Estate Association)

Now let's compare the value of real estate in Canada with PEI real estate prices and determine the difference which is the equity you would have to invest in further PEI real estate for rental.

The figures in the table above are the differences in equity between an average PEI real estate prices for a home and those in the other provinces. These figures represent the amount of money you may have "left over" after selling your current property and purchasing a similar home in the PEI real estate market. Of course this assumes that your current home is mortgage free. In all cases there is sufficent money to make a PEI real estate investment over and above your own PEI home. You could purchase rental property and add the rental income to your monthly retirement income. Of course you could also invest this money in other financial instruments as well.

Becoming a Landlord - PEI real estate and the rental market

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 $50,000-100,000 when you are considering becoming a landlord. As you can see from the previous table of home prices even in the lower end of the national real estate values it is possible to extract sufficient equity to make a PEI real estate purchase in this price range after you have bought the PEI home that you will live in.

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 such as Don Murphy 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.

If you do not have sufficent equity for your PEI real estate investment plans....

Contact Don today and through our in-house mortgage brokerage, Centum Financial we may be able to help you finance your PEI real estate dream. *All information in this article is believed to be accurate at time of writing. Readers should not depend on this information exclusively. Before acting on any information contained here you should seek independant legal and investment advise