SMALL towns, BIG options
The big thing is they can live in a much nicer house for
less than half the cost
Many Canadians fantasize about retiring in sunnier climes where the only time you’ll use a shovel is to dig a deeper hole in the beach sand for your umbrella.
Studies have shown that a majority of Canadians have thought about where they want to retire but only a small portion would actually leave the country. Some appear to be moving to smaller communities, according to 2011 census data, which show the population of people 65 and over growing in small towns.
“I have a [Toronto] client who is moving to P.E.I. this year, partly for lifestyle and partly lower cost,” certified financial planner Ted Rechtshaffen said. “The day-to-day living expenses may be a bit cheaper; but the big thing is they can live in a much nicer house for less than half the cost. They can sell a Toronto house that is 1,800 square feet for $700,000 and they can buy a P.E.I. house that is 2,500 square feet that’s $250,000. That gives an energy boost to your retirement.”
Mr. Rechtshaffen, who is president of TriDelta Financial, said many of his clients have looked to small towns with close proximity to major cities so they can have the best of both worlds. Though the small town will have fewer options, such as restaurants or theatre productions, those options will be less expensive, he added.
Retirees in search of a new home should consider many other factors, including access to good health care and transportation. There are also things that money can’t buy, such as your social network and the proximity to your family.
“If somebody is thinking of moving to a smaller place, my suggestion is to try before you buy,” said Peter Drake, Fidelity Investments Canada’s vicepresident of retirement and economic research. “In other words, go and rent a house for a month and do it in January when the weather is going to be cold and miserable. If you enjoy it for that month, you’re obviously going to enjoy it when the grass is green and the trees are out.”
Here’s a look at a few affordable Canadian communities suitable for retirement:
Peterborough, ont.
Peterborough, said Mr. Rechtshaffen, is “seniors heaven.” StatsCan said one in five people in Peterborough, northeast of Toronto, are now seniors, making it the oldest census area with a population of more than 100,000. “We were noted as being one of the best cities in the country as being agefriendly and we continue to build on that structure as we move along,” said Daryl Bennett, Peterborough’s mayor. “There are a great variety of cultural activities as well as inexpensive living arrangements. Everything you can get in a big city is here and it is at hand.”
Fredericton
Housing prices i n New Brunswick are among the lowest in the country. In Fredericton, the residential average price was $173,655 in December. It boasts a low crime rate, and two universities, the University of New Brunswick and St. Thomas University, with education offerings for retirees. “As most Canadians know, it’s hard to get good value for your hard-earned dollars, so that is why retiring in Fredericton has made good sense for my clients,” financial planner David Gorveatte said. “It offers many great things to do all year long, from boating and golf in the summer to skiing at two courses in the winter without the high cost of travel.”
comox Valley, b.c.
If you want the ocean view and the B.C. mountains but don’t want to pay the Vancouver or Victoria price, Comox Valley is a good alternative. The average sale price of a Comox Valley home was $360,030 in December, according to the Vancouver Island Real Estate Board, whereas the annual average price of a single-family home in Greater Victoria was $603,298 in 2012. It’s about an hour’s drive from Nanaimo and a three-hour trip to Victoria, if you’re in search of city life. Another plus? The normal temperature for this time of year reaches a high of 7C.
StratFord, ont.
Ever y lawn is carefully coiffed in this quaint, pedestrian-friendly town, known for its popular theatre festival. Stratford has among the lowest living costs of North American cities and housing costs are about 10% and 30% below the Canadian and U.S. averages, respectively, geographer and author Warren Bland says in his book Retire in Style: 60 Outstanding Places Across the USA and Canada.
haliFax
In his book, Mr. Warren rated the quality of life in Halifax as “excellent,” citing the efficient public transit, the mix of neighbourhoods and the park trails. The average price of a home in Halifax is $203,178, according to Canada Mortgage and Housing Corp.