Tips of Buying in Various Regions

Throughout 2012 and beyond, Rural and smaller BC towns and cities are undergoing sweeping demographic, economic, and environmental changes. However there are four distinct categories of properties that fall under the "BC Country living" mantle. Understanding these subcategories will give you the edge in the marketplace. Which one are you looking for?

• Category #1

 -- The Pristine Waterfront or Wilderness Retreat -- This is that perfect property that everyone dreams of owning someday. It is secluded by a quiet lake, with a breathtaking view, where three days will recharge your soul. Or it can be a 200-acre ranch in the foothills of the coastal mountains in British Columbia. They can be very hard to find and are at the top of the food chain. The value of these properties have resiliency to economic factors affecting the other categories. Specifically the Okanagan, and parts of the Southern Caribou are two prime regions for Category #1 areas. This is blue chip where you can expect to pay a million dollars and up for a prime property on a lake.

• Category #2

 -- Smaller towns and cities in BC that could see growth as Baby Boomers retire to quieter urban areas, as more people buy vacation homes, and as new generation of Internet savvy professionals choose to settle in small towns. These are properties in and around cities like Williams Lake, Prince George. Properties here cost less the 50% for similar properties in the Okanagan around Kelowna. They are also great locations to own and operate a business, as acquisition costs for labour transportation and commuting time are far less then the Lower Mainland 
investment.

• Category #3 

-- Declining resource-dependent areas, that can no longer rely on fishing, timber, mining, or related manufacturing industries can be a great place to find a bargain. There are easily a couple of dozen of these communities in BC as resources become depleted and people move back to larger urban areas. Northern Vancouver Island is a Category #3 region with centers like Port Hardy, Port Mcneill and especially Port Alice. These are bargain basement areas that are vibrant communities on the sea with spectacular views. We can tell you about many of these areas.

• Category #4 -- 

Chronically poor communities that have been devastated and then abandoned by resource extraction. Ocean Falls and Port Alice are both good examples of communities [both communities are on the ocean] where housing prices have collapsed. These towns unquestionably offer the lowest priced real estate in Canada. In some instances you can buy up the whole town for a bargain and we have one of these towns for sale right now.

Demographic Transitions

Migration into and out of rural communities is the key to understanding the demographic characteristics of rural Canada. It affects everything from the vitality of the community and its culture, right down to the availability of a tradesman to fix a leaky faucet. However, the long-standing exodus from rural to urban has shifted in many areas, and net migration is now fueling growth in many rural communities. Some areas where this has already happened are obvious but the key in sound real estate investment is to determine where this swing will occur in the future. 



Over the months and years ahead Baby Boomers will choose to settle or retire in quieter, less-congested places. New immigrants will also be moving into these areas to fill 20% of 100,000 new jobs that are expected in the next decade. These new residents bring new experience, skills, and financial resources to rural areas, but they can also contribute to new pressures on the cost of living, especially real estate values. The key is to buy before the tide turns. 



Globalization and Rural investment 



Declining resource-dependent areas hard hit for generations may now be a surprising real estate best buy. Today, new technologies, new business and manufacturing practices, and new global competitors have led to profound changes in rural economies.

 

Thomas L. Friedman, in his best seller The World Is Flat: A Brief History of the Twenty-First Century, looks at current trends in globalization with an emphasis on the early 21st century. The title is "A Metaphor for Viewing the World as Flat or Level in Terms of Commerce and Competition", a metaphor which will have significant effect on the real estate values in non-urban areas of BC.