Own Your Future: Radium Is Affordably Priced With Rising Investment Value
Radium is an unusual, small B.C. community in that more than 60% of residences are multi-family. While this dynamic is being driven by recreational property ownership, the availability of multi-family residential dwelling units generates ability for many to “own” an inspired mountain existence.
Housing Prices are a Fraction of the Price of B.C. and Calgary Housing With Income Near (B.C.) or Substantially Above (Calgary) the Canadian Average
Using median after tax family income (2010) and average house resale price in Radium (2014) compared to B.C. averages, Radium:
Using median after tax family income (2010) and average house resale price in Radium (2014) compared to Calgary averages, Calgary:
Src: Royal LePage Rockies West Realty (Radium figure) (http://www.rockieswest.com/Statistics/page_2293964.html), Kootenay Real Estate Board (http://www.creastats.crea.ca/koot/), B.C. Real Estate Association (http://www.bcrea.bc.ca/news-and-publications/economics/markets-at-a-glance), Calgary Real Estate Board (http://www.creb.com/public/seller-resources/housing-statistics.php)
The price to income ratio is the basic affordability measure for housing in a given area. It is generally the ratio of median house prices to median household income, expressed as a percentage or as years of income. This ratio is a basic component of mortgage lending decisions. The lower the number, the more relatively affordable housing is.
Canada's most affordable market (2013) was Moncton, New Brunswick with a Median Multiple of 2.3.
Src: Non-Radium information source: www.demographia.com/dhi.pdf. Note: Radium calculation uses 2014 average home resale price and Census Canada 2010 household income data. House prices are inclusive of single and multi-family residential dwellings unless specific in italics above.
1 (condo) assumes approx. $365 in monthly condo fees, $115 in monthly property taxes based on current tax rate x $227,000 YTD residential dwelling resale price in Radium, $58 in monthly home heating (propane) costs (average Canadian consumption x Fall, 2014 retail auto propane price), a $520 average monthly car payment (Canada), 10% down payment on an average price resale home ($227,000) in Radium (2014 YTD), a 3.19 5 year, 25 year fixed mortgage with 25 year amortization as at Oct., 2014, and $83,220 median gross Calgary CMA and $66,049 East Kootenay census division (2010 – Census Canada latest available figure).
1 (detached single family dwelling) assumes approx. $220 in monthly property taxes based on current tax rate x $428,000 YTD detached residential dwelling resale price in north Windermere Valley, $58 in monthly home heating (propane) costs (average Canadian consumption x Fall, 2014 retail auto propane price), a $520 average monthly car payment (Canada), 10% down payment on a home, and a 3.19 5 year fixed mortgage with 25 year amortization as at Oct., 2014, and $83,220 median gross Calgary CMA and $66,049 East Kootenay census division (2010 – Census Canada latest available figure).
Average value owned dwelling:
Src: Statistics Canada, 2006 and 2011 Federal Census
Housing prices rose relative to BC, Calgary and Vancouver between 2006 and 2011, signifying robust desire for residency in the East Kootenay. Since 2011, average home resale prices in the North Windermere Valley (Invermere, Invermere rural, Radium, Canal Flats) have fallen 16%, representing a market breather that represents a good buying opportunity for recreational property owners and those wishing to be resident in Radium full-time.
B.C. Has a Competitive Tax Climate
B.C. has one of North America’s most competitive tax climates for businesses. B.C.’s general corporate income tax rate is 11 per cent, among the lowest in Canada. BC’s combined federal-provincial rate is 26 per cent, among the lowest of the G7 countries. BC has the lowest provincial personal income taxes in Canada for people earning up to $121,000.
The Canadian average residential tax rate is $9.51 per $1000 of assessed value and the average commercial rate is $24.25 (Src: http://www.biv.com/article/2014/9/vancouvers-low-tax-rates-hold-dark-side/). Radium compares favourably at $6.1622 per $1000 of assessed Residential value and $14.64 per $1000 of assessed value for Business. Radium has the 24th lowest annual residential property taxes and charges ($2132) of 161 B.C. municipalities (Src: 2014, http://www.cscd.gov.bc.ca/lgd/infra/tax_rates/tax_rates2014.htm).
Cost of Living