Why is British Columbia a Good Place to Invest?

Economies Of Scale - Why is British Columbia a Good Place to Invest?

Good morning. Today, I found out about Economies Of Scale - Why is British Columbia a Good Place to Invest?. Which may be very helpful in my experience and also you. Why is British Columbia a Good Place to Invest?

As my children age, and I have the occasion to see them react to discrete mentors and teachers, I perceive that quality is far more important than quantity when it comes to coaching them and important them in the right direction. They need to know the dissimilarity between right and wrong in order to help them make their own decisions. I personally believe in teaching them how to think, not what to think. That means they are going to learn by their experience. I once heard person say that palpate is "recognizing a mistake when you make it a second time!" I believe the same is true either you are buying a home to live in or seeing for that next real estate investment.

What I said. It shouldn't be the final outcome that the real about Economies Of Scale. You look at this article for facts about what you need to know is Economies Of Scale.

Economies Of Scale

As with any speculation decision, (and real estate will likely be the top dollar value) you need to use all of the due diligence tools available to you and your real estate professional. In many instances though, it is still potential to make a mistake. We all know however, that it is best to learn from person else's mistakes rather than your own. That is the purpose for the Okanagan Insider Report. I welcome any feedback or comments you may have in regards to the materials here or suggestions for content of future reports.

This month, I genuinely wanted to spin 2005 and help you understand statistically that the Okanagan is in transition. There are many opportunities for the real estate buyer to way statistics. The most important approach is to use a trusted real estate advisor. The theorize that I propose this is that most statistics will tell a story if they are interpreted correctly; however, in isolation, they can greatly mislead the mean consumer. As an example, lets take a look at a flyer that was delivered to my home from another real estate pro in the past few weeks. It contained a rather alarming statement for my way of thinking. It quoted some statistics from the local real estate board with regards to sales on a month over month basis and then accomplished in writing that "the mean real estate sale in this month compared to last month was lower by x%", yikes!

Before you send your emails back to me indicating that I helped you get all excited for nothing with regards to this shop place, lets find out how that statistic was isolated in a criticism that could produce a rather alarming supervene to person just seeing to sell their home. The truth is that the statistic has less to do with the mean price of a home, and more to do with the type of inventory being contracted on a month-by-month basis (which was not mentioned in the single flyer). What I may terminate upon additional research is maybe that less lakeshore inventory was sold in the month under review, important to a lower mean transaction value, or that a greater ratio of entry level units were contracted, lowering the mean transaction value, any way the real estate economy remains as buoyant as it has been for the rest of the year on a year by year comparison! Now that is not quite such an alarming statement and is the reality of the situation. So be meticulous over the New Year when the house party real estate specialist tells you that house prices are falling in the Okanagan!

For a trusted real estate advisor, I would propose seeing out the background and palpate of your chosen realtor, and the reserve that they can bring to the table from their respective office, which is likely a great source of data and advice if you ask your realtor to check a miniature deeper into some aspect of the shop place. Every real estate office has specialists in discrete segments of the real estate market, and lets face it, your own personal realtor cannot be "all things to all people". Make sure you invite that they get a second concept from their office if you feel it helps you in your decision development process.

Now back to the stats. Of course, as I write this, I only have 11 months of data, but lets add in some excerpts for you to spin yourselves:

"The Okanagan Mainline Real Estate Board (Omreb) reports that Mls® sales increased by 9.2% to 714 units sold in November 2005 compared to 654 sold while the same duration in 2004. Last month's sales totaled 742. The shop action continues despite winter setting in. In sales units, the Shuswap Zone leads the way with a 26.8% increase, 104 units sold compared to 82 last November. Next, the Central Zone units sold are up by 13.7%, at 447 sales this month compared to 393 last November. North Zone sales units are down -8.1%, with 159 sales compared to 173 last November. The Board Listings' total inventory decreased by -16.4%, for a total of 4,059 active listings, compared to 4,855 last November. Actual Listings taken in November 2005 are down -2.4%, with 971 listings compared to 995 in November 2004. Total Sales Volume for the whole Board is up substantially by 28.8% at month-end, 2,683,372 compared to November 2004 at 9,663,921 Year-to-date volume is also up 31.9%, totaling ,596,242,443 for this year compared to ,968,441,561 last year at this time. The Board has also surpassed the total sales volume for all of 2004 which was ,121,969,929. Currently, the sales volume for 2005 year to date is sitting at ,618,043,332. Omreb is heading for another narrative year in sales volume."

Remember that this excerpt is from an Okanagan Mainline Real Estate Board narrative and is only for the month of November compared to the same month last year. Now, maybe you can see why month-to-month comparisons cannot take into inventory the potential seasonality of the real estate shop place here in the Okanagan. The main indicators that I would look at in the above report, both as a real estate investor and home hunter would be:

1. The growth in action in the shop place
2. The discount in available inventory for sale and new inventory arrival into the shop place.
3. The colossal growth in total sales volume Ytd for 2005 over 2004.

All of these indicate to me personally, a transitioning shop place with good external influencers. We touched on what some of those external influencers are in old reports, but lets spin just so we can speedily discuss the likelihood of this strong shop continuing:

1. Garage provincial political atmosphere in Alberta and Bc
2. Solid fiscal position for Canada as a whole
3. narrative oil prices sustained from 2005 into 2006
4. Canada and Bc known as a safe haven for travelers
5. Baby boom generation just beginning to retire
6. Improving job market
7. Generational inheritances becoming commonplace and beginning to change hands. Today's seniors will be the first generation (of significance) to pass on to their families' sizeable inheritances from non-leveraged real estate en masse.
8. Low interest rates
9. Gorgeous region
10. Foreseen, climate
11. Exquisite communication access
12. Significant society services for retirees.

The fact that we are living in a post 9/11 economy gives cause for concern, but life goes on and even with the fickle nature of today's economy, very few of the above unavoidable attributes should turn significantly negative over the arrival years.

Here is an excerpt from Omreb's Mls shop action narrative for the Central Okanagan:

"Mls® shop action narrative Central Okanagan - November 2005 Wade Webb, (Central Okanagan) Omreb Communications Director, states -All numbers show the narrative Real Estate year for the Omreb is going out in style. Typically, fall shop conditions slow, but this year the shop continues to terminate strong. Total Sales for November were up over 13% and residential sales were up over 11% compared to November last year. mean sale price for November was 9,184, up from 5,141 November 2004. inventory is not addition and sales volumes are up, indicating that contribute is not meeting the question and with that should bring another good year for real estate in 2006."

As a consumer, you can way this type of data on many dissimilar web sites, the local real estate board ( http://www.omreb.com ) is probably your closest source of information, followed by the Bc Real Estate association ( [http://www.bcrea.bc.ca] ). Remember though, that a proven real estate specialist will be able to read these statistics much in the same manner that an accountant reads a chart of accounts for a company.

I hope now you can see why it pays to research a miniature further. In my mind, the most underused word in the English language is "Why". I think it is drilled out of us as enquiring young children that repeat the word some hundred times a day to "frazzled parents" who eventually ask their children to stop asking the question. Well, it is time to learn it again. That question opens up a world of occasion for you as an investor, instead of reading one line in a narrative and terminal that this is not the time or the place to spend your money.

One extremely Significant area that we need to talk about in review, and an area in which I have invested much time and exertion as a advisor and realtor, is new home sales.

Most new home sales released into the shop place are not shown in any Mls reports. I can already hear some habitancy groaning indicating that they were not last year either, so why bring it up. Well, the truth is that unless you work in that field, and you know the developers involved, you have very miniature basis with which to analyse year on year success.

New residential amelioration has changed to more luxurious offerings with what we might think to be intangible benefits such as products offered by The Conservatory in Kelowna or Seasons in the Okanagan in Vernon. The Conservatory offers it's buyers the occasion to advantage from year round tropical botanical gardens onsite. Seasons in the Okanagan is in the process of constructing a .5 million health and recreation premise as part of it's strata subdivision. Both these items contribution competitive advantages over other similar developments and an intangible for most that has a tangible value at the time of resale.

New home developments are selling at a colossal pace as the shop in the Okanagan picks up in terms of pricing and consumers question either to buy that pre-owned home or spend the same money and have the occasion to customize their new buy to their satisfaction. Add to this the sales in the resort shop place and you will understand why I mention the fact that new home sales go un-recorded until re-sales start to reach the Mls system, which allows them to be tracked.

The successes that come to mind immediately for me include:

Barona Beach on the Westside
Skaha Beach Club in Penticton
The seacoast in Vernon
The Rise in Vernon
Seasons in the Okanagan in Vernon
Adventure Bay in Vernon
The Outback in Vernon
Playa del Sol in Kelowna
Royal secret residence Club in Kelowna
Veranda Beach in Osoyoos
Lakeshore Place in Penticton

These projects describe hundreds of millions of dollars of sales and presales in the society over the year, which is largely unreported in the Omreb figures. The fact that some of the largest developments in scale are yet to open is once again an indication that the Okanagan is a valley in transition and as the new year unfolds, I believe we will see the very same enthusiasm for our real estate here as we did in 2005.

I hope you obtain new knowledge about Economies Of Scale. Where you'll be able to put to utilization in your evryday life. And most of all, your reaction is passed about Economies Of Scale.