$500 OKANAGAN LAKE
BEACHFRONT By Mark Terry, Independent Financial Advisor Agility Financial
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R V T R A V E L E R S
Walton’s Lakefront is a luxury RV Resort with 70 competitively priced lots. Beautifully landscaped and separated by cedar hedges, each site has a yard complete with picnic table. With large stamped concrete pads, parking for an additional vehicle and of course a magnificent lakefront view, relaxing in your very own corner of the Okanagan valley is just a cruise away.
Full Hook-Ups Pool & Hot Tub Fitness Centre
Call Us Today 1-800-964-1148
Local to World Class Wineries & Golf Courses Clubhouse with Fully Equipped Lounge Available to you 365 Days a Year
Exceptional Amenities Lake Front Location A Great Investment Opportunity
Take control of your lot in life and secure the Title to your home away from home
www.WaltonsLakeFront.com 3207 Lakeshore Drive, Osoyoos, BC
Consider the confused look on our realtors face in January 2008 when we listed our house and when asked “What are you looking for?” replied “Nothing.” Of course the realtor was very concerned for us, after all, if we got out of the market now it would be very costly for us to get back in at a later date. My relatives, who invested in property, were more open with their thoughts and comments and merely considered me an idiot. Regardless, our house sold in March 2008 about 2 months before the decline in the Penticton market. I have heard “Wow, were you ever lucky!” on more than one occasion. LUCK!! My wife and I looked at where we were living. The land our house was on was worth the same with or without the house. Most people “believed” that house prices would continue to go up. The “truth” was that land prices were out of sync with reality and it was time to sell.
“Don’t confuse me with the truth, I know what I believe.” I consider myself an optimist regarding the Canadian housing market when compared to the likes of Garth Turner, author of
numerous books including his latest “Money Road”. However Garth Turner makes some valid points regarding what most Canadian’s consider their #1 retirement asset, their home. By the way, I hadn’t read these books prior to selling our home. Consider what affordable housing is; “a commonly accepted guideline for housing affordability is a housing cost that does not exceed 30% of a household’s gross income” (1 ) . So where I live, the gross household income is approximately $62,000 (2006 figures of $53,875 (2) and adding a very generous 15%) and allows $1,550 for housing. At current interest rates (4 %+/- ), that works out to about a $300,000 home with a mortgage of $270,000 for 25 years. What’s missing? The average interest rate over the last 36 years is 10% (9.9889%) (3)! That changes a $1500 payment to $2600. What that means is the price for affordable housing should be $180,000. In real life, for what my brother paid for his 3 bedroom split entry, wouldn’t cover the current cost of a bachelor suite loft condo. Oh, and the average income in his trade has only increased 5% in 14 years!
I won’t get into the discussion of whether or not your home is an asset or liability. For that I would suggest reading “Cash Flow Quadrant” by Robert Kyosaki, however I would advise that you “don’t drink the Kool-Aid”. To continue, the equity
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Own Your RV Experience! Pricing starting at ONLY $99,900 Rental rates as low as $35/night
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