Cost of Living

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:

  • Has 5% lower median after tax economic family income ($64,748) than the B.C./Canada average ($67,500), BUT
  • Has an average resale home price that is 61% lower than the B.C. average

Using median after tax family income (2010) and average house resale price in Radium (2014) compared to Calgary averages, Calgary:

  • Has 30% higher median after tax economic family income ($84,938) than the B.C./Canada average ($67,500), BUT
  • Has an average resale home price that is 53% lower than the Calgary average (23% lower specific to single family dwellings). 


Average Residential Home Resale Price (YTD as at Sept. 2014, includes single and multi-family residences):

  • Radium - $226,000
    • Radium Single Family Detached Dwelling - $428,000
  • Kootenay Region - $290,000
  • B.C. - $580,000
  • Metro Vancouver - $820,000
  • Single Family Detached Dwelling - $984,000
  • Single Family Detached Dwelling - $552,000
  • Calgary metro - $483,000

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)


Based on house resale prices in 2014, housing prices in Radium (inclusive of single and multi-family residence) are:

  • 61% lower than the B.C. average
  • 72% lower than the metro Vancouver average
  • 53% lower than metro Calgary average


Housing Affordability: Price to Income Ratio (2013)

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.

  • Radium
    • Calgary purchaser - 2.72 (all housing), 5.16 (detached residence)
    • East Kootenay Region (BC) purchaser – 3.42 (all housing), 6.48 (detached residence)
  • Edmonton 3.9
  • Calgary 4.3
  • Kelowna 5.9
  • Victoria 6.9
  • Vancouver 10.3

 

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.


Using a mortgage affordability calculator (http://cmhc.ca/en/hoficlincl/moloin/moloin_020.cfm) that incorporates average expense and mortgage financing assumptions1:

  • $56,400 in annual gross household income is required to purchase an average resale home ($227,000 – including single and multi-family) in Radium. Based on that annual income, 59% of East Kootenay households and 69% of Calgary metro region households can afford an average-priced resale home in Radium.
  • $81,600 in annual gross household income is required to purchase an average resale detached single family dwelling ($428,000 – 2014) in the north Windermere Valley (Invermere, rural Invermere, Radium, Canal Flats). Based on that annual income, 40% of East Kootenay households and 52% of Calgary metro region households can afford an average-priced resale home in Radium.

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).


Radium Housing Investment Value is Rising

Average value owned dwelling:        

  EAST KOOTENAY B.C.  CALGARY VANCOUVER
2006 $259,738 $418,703 $381,866 $520,937
2011 $358,458 $543,635 $466,438 $691,550
%change (2006-2011) 38% 29.8% 22.1% 32.7%

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.

Src: http://www.britishcolumbia.ca/invest/why-british-columbia-canada/low-business-costs/taxes.aspx


Radium Has Competitive Property Tax Rates

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).


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