06 May Why is it called “Real” Estate?

Granite topped island, stainless appliances, beautifully decorated

It seems like time is moving faster than ever.  Maybe it’s just part of the aging process, but the changes seem to be happening faster and faster and the “good old days” now seem not that long ago.

It must be difficult for the young to make decisions about a secure future today.  Government jobs used to mean a secure, long term career with benefits and a decent pension when you retired.  In the past, you picked a profession you thought would provide personal fulfillment and substantial income, enrolled in university, got your degree and chose your employer and where you wanted to live.  Now you may have to push it to a Master’s Degree, and end up tens of thousands of dollars in debt selling computers in a retail store.

Many of us who were building our retirement nest-egg “playing the markets” or using the myriad of mutual funds or other non-guaranteed investments available have seen hard earned money simply disappear from our accounts.  If you spend a couple of hours researching what “money” is today, you’ll probably be shocked to find that the Federal Reserve and the Bank of Canada are actually private banking firms who have been printing money and loaning it to “the government” at interest for decades.  This is why countries including both Canada and the U.S. have huge and growing national debts.

People are starting to question the actual value of “money”.  To say, for example, that gold is worth $1700 an ounce, or a Rolex watch is worth $10,000, begs the question, “what if the money isn’t worth anything”.  What if our common measuring stick is way out of whack?  What if the economic system finally collapsed and you were bartering for basic necessities like food and water?  Would you trade your precious supply of food for shiny coins or a Rolex knowing how scarce it was?  As the U.S. economy staggers under the crushing weight of it’s national debt and European countries struggle to keep the Euro alive, people around the world are becoming more concerned about the viability and value of their currency.  Their concern appears to be justified as there is simply nothing of value to back up the major currencies of the world today other than our belief in currency.  Not gold or silver… it’s been printed out of thin air.  Debt far outweighs assets. Fiat currency.  Funny money.

Although Canadians aren’t necessarily exempt from the turmoil swirling around the globe, we’re in pretty good shape by comparison.  If we avoid reading the news from around the globe, it’s very good here.  There are still jobs for our children (although maybe not the dream job or location they were hoping for).  Our banks are still solvent.  Compared to many other countries, it’s safe here.  We have a medical system that still provides all of us with at least the basics without bankrupting us.  And our overall real estate market is still viable.  More people are realizing that compared to fiat money, owning property is not smoke and mirrors.  It is real (estate).

The average home in Parksville sold for $168,111 in 2001 according to the Vancouver Island Real Estate Board statistics.  In 2010, it had risen to $389,523.  Sunrise Ridge is deed and title real estate, sold in “fractions” that allow everyday people to own property in one of the most beautiful and temperate areas in Canada.  People who don’t want to uproot themselves and move away from friends, family and the homes they’ve bought and paid for, but would like to escape the harsh winters of Alberta and eastward for a couple of months every winter.  People who have worked hard for what they’ve accumulated, and want to leave something of value to their heirs.  People with what some might call “old fashioned values”, but who don’t have hundreds of thousands of dollars to invest in anything, let alone a second home.

None of the usual baggage comes with this real estate.  You can come and use it yourself, invite family and friends, rent it or exchange it at over 2600 resorts around the world if you don’t want to come to Parksville every year.  You don’t have to paint, fix or clean it.  You don’t have to collect the rent or even meet the renters.  You can sell it or leave it to your heirs when you’re finished using it.  It is real. It is yours.

If any of this strikes a chord with you, take some time to at least explore the possibility of converting some of your “money” into a very special piece of real estate.  The time you take could be the smartest investment you’ve ever made.

Contact John Seeland for details.        john@sunriseresortparksville.ca