The Yahoo! News Canada website has a recent article that discusses a dilemma that small-town property owners are facing. The featured owners can't seem to sell their home for the right price since their city’s economic potential is low. The article sheds a little more light on the subject:
Reuter explains that economy is the primary driver of real estate prices. For isolated small towns, jobs are often single industry-based and can vanish if the employer takes a hit. The real estate market in Quesnel, B.C., area population of about 25,000, was on fire until the mountain pine beetle destroyed the area’s forestry prospects.
Unless communities are sustained by multiple industries like tourism, forestry and oil and gas they are highly unstable. British Columbia’s Fort St. John, is one perfect example of stability. Fort St. John has it’s economy fueled by every major commodity.
Towns with only one or two major employers won’t likely grow forever, Reuter says. And if those industries falter, the towns’ residents will age and the community’s tax base will be reduced. Without sustainable industry and younger working families coming in, the towns will likely die or age into retirement communities.
Prime houses for sale in Fort St. John, BC are giving investors a higher CAP rate and profit, especially if they're properly maintained and they have modern fixtures installed.
Buyers have to carefully select properties that have a broad market appeal. As mentioned previously, location is one of the most important factors in determining the appeal and value of a house. A updated or newer home that is located near schools and on a quiet street will command a premium price. “This is why Fort St. John is the crown jewel of BC real estate.” said Scott Sauer of RE/MAX Action Realty 1-250-794-1515
To get decent returns upon resale, buyers will need to make purchases that meet those criteria when they sell. It is a great investment to buy a home in need of renovation and make money on your sweat equity. However, that is easier said than done because of the intense competition and multiple offers. Real Estate around Fort St. John is selling quickly, Scott Sauer can help buyers find reasonably-priced Fort St. John houses for sale.
(Article Excerpt and Image From Why a small-town couple can't even give away their home, Yahoo! News Canada, October 2, 2013)
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