Here's
What Saskatchewan Seniors Should Know
About Utilizing a Reverse Mortgage...
Real
Estate in Saskatchewan at a Glance:
After
the explosion of house prices in 2006, followed by the subsequent
"nosedive" adjustment shortly thereafter, prices
are currently said to be more reflective of realistic market
values, and the slight increase in value from '08 - '09 is
more inline with actual inflation.
However,
considering the drastic rise in house values in the past 10
years - where a single-detached house in Regina worth $89,000
in 2004 is now worth $300,000+ in 2010 - one could argue that
it remains to be seen as to whether Saskatchewan has finally
"come of age" and met actual market values, or if
the market is still adjusting itself to actual demand (instead
of speculation).
Note:
For more information, and for up-to-date real estate and economic
news & data, we suggest visiting CMHC's
Housing Market Info Center for new reports each
quarter.
Average
House Values in Saskatchewan and the Major Cities:
|
Location
|
AVH*
2009
|
AVH
2010
|
|
SK
(province-wide)
|
$230,776
|
$236,455
|
|
Saskatoon
|
$279,457
|
$312,582
|
|
Regina
|
$242,196
|
$240,667
|
*
AVH = Average House Value
What's
the Outlook for SK Seniors?
Saskatchewan's
future from the perspective of real estate values is mostly
positive.
There's
no denying that basically anyone who bought into the market
pre-2004 or so (and especially those who bought more than
a decade ago or longer) has realized tremendous equity growth
in a relatively short period of time. Many houses in Saskatoon
and Regina literally doubled or tripled in value in the span
of a few years during one of Saskatchewan's largest real estate
uptrends.
And
even now - though it's dropped off quite a bit since the peak
in '06 to '07 - compared to what they were at the beginning
of the new century, real estate prices are still enormously
higher than they were a short time ago.
What
caused this unparalleled growth - and what does it mean for
the future?
The
"cause" was more or less a variety of ingredients
that combined to create a frenzied price-hike across the province.
A large factor was simply that Saskatchewan had vacancy, inventory
and jobs to accomodate Canadians living in places like Calgary
- where jobs were scarce, housing prices were being pushed
the limits of marketability and vacancy was nearly nonexistent.
This sparked a mass "exodus" of sorts into Saskatchewan,
creating demand in a market that had never otherwise had migratory
factors to drive up prices.
The
snowball effect set in, and all of a sudden, people realized
that Saskatchewan's market was growing. Speculators, house-flippers,
investors, new home-buyers and everyone else in between activated
the market and drove up sales volume and prices.
Inevitably
- what goes up... must come down. But even now - the average,
seemingly stable housing values are still significantly higher
than they've ever been when you compare them to the market
just 5+ years ago.
And
this raises a yellow flag.
Saskatchewan
has a growing economy, and the mining & energy sectors
are experiencing substantial growth. This, combined with an
influx of migrants and infrastructure projects is creating
an environment ripe for prosperity - but it's all happened
so quickly.
Therefore,
it's important to gain an accurate value estimation of your
home - not based on today's current market - but on the predicted
market years down the road. We strongly recommend that you
consult a professional financial planner to discuss the realities
of Saskatchewan's economic recent "spike", and to
ascertain a realistic picture of what's to come.
Currently,
the average senior in Saskatchewan can get up to $94,582
(40% of the avg. SK house value) in tax-free cash/income
through a reverse mortgage against existing equity.
A
word of caution...
As
the "baby-boomer" population matures into retirement
age amidst a trailing recession, there are bound to be some
desparate people looking for relief. This creates an environment
ripe for scam-artists.
Saskatchewan
seniors should be aware that though there are many legitimate
retirement strategies (such as CHIP™, which is also registered
bank in Canada), unfortunately there are also scams and unscrupulous
tactics that are harmful in the long-run. We suggest consulting
the Sask.
Securities Commission to research a company or program
before betting your retirement on it.
Where
do I go from here?
If
you would simply like more information - or if you'd like
to discuss it further with us directly, please fill out our
quick inquiry request form at the top of the page, and we'd
be delighted to help you and answer any questions you may
have.
In
fact - if you'd like to speak to a reverse mortgage professional
who can provide you with answers and information so as to
assist you in making a decisions that's best for you, why
not call us right now?
It's
toll-free, and we'd be delighted to hear from you!
Call
Right Now:
1-877-686-4246
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