There is almost a lemming-like rush of Canadians buying properties in depressed markets in the US, specifically the Sun Belt. It reminds me somewhat of the young lovers who rush off to get married in Vegas without fully thinking through the consequence. There are tax implications for foreign buyers (especially if rentals are involved) - on going and at the time of eventual sale - that many Canadians are just not considering. There's also the reasons these properties are so cheap - and getting cheaper - to consider.

Pundits say the US housing market has a least 5% more to go before it hits bottom. And then what will it do - bounce off the bottom and rise to new heights next year? Not likely for the next 5 to 10 years. The US continues to drag itself out of one of it's worst self-induced financial crisis in history. People who have lost their houses and their life savings will need jobs and time to re-build their financial assets - and they won't be getting back into the market with no money down anytime soon.

While the rising Canadian dollar vis a vis the US dollar is one more element making US properties look even more attractive, there's a reason for the weakening US dollar - their economy is in a mess and their debt levels are enormous. Now they are a wonderfully resilient and entrepreneurial people and they will fix this but not anytime soon.

So my alternative recommendation is look much closer to home - in our own backyard so to speak. The influx of primarily US buyers looking to invest in BC has substantially dried up. Sure Mainland Chinese are buying up all of Richnond - it will be great land for growing cranberries after the first tsunami hits, but that's another story. There are many alternatives.

Areas like the Central Okanagan, the Kootenays, the Cariboo, Squamish, and Whistler were all hit hard in the recent recession. Whistler you say? Yes check out the much lower percentage of US license plates in town, because when your house is in foreclosure - well you get the picture. Kelowna is particularly appealing because of the great buys now avaiable in single family and project real estate.

And what is great about BC's economy is that while Canada's exports to the US make up 75% of the country's total exports, BC's US exports are less than 50% of it's total. BC is less dependent on the US recovery than the rest of Canada. And as the world slowly recovers guess where they have been buying the commodities they need to fuel the growth - you got it! And as oil hits new heights where do you think our Alberta neighbours are going to resume buying their vacation and retirement properties? Fort MacMurray - not likely. It's going to be driving distance from Calgary and Edmonton.

So in BC you can find good buys in an economy that wasn't as hard hit in the recession and one that is recovering faster than our neighbours to the South. Seems to me that buying in our own back yard is much more along the line of a true investment than an apartment in Vegas.

Makes you want to pause and reflect while you wait in the border lineup doesn't it?

Okay so we are a little short on buffalo but check out the llamas instead in the Fraser Valley and some of the bargains in small acreages. Ma and Pa woke up one day to realize the kids had moved out, the horses have died, the John Deere was broken and they were busting butt to maintain the small acreage that their kids grew up on.

With a large number of acreage owners in this position, we have seen the value of small acreages moderate relative to typical lot and townhouse properties. This is the typical "Baby Boomer" effect - this demographic decides to do the same thing at the same time and markets beware!!

However this phenomena is turning out to be an excellent opportunity for younger buyers to acquire acreage that was probably out of reach for them a few years ago. Sure you have to drive the kids everywhere, and having the space will take away the excuses for not buying them a horse, however acreage could be a good long term investment.

So what have Ma and Pa been buying - well adult townhouses of course and guess what the prices are rising in quality adult developments. Some people though are venturing further away, into major centers like Vancouver, and driving up the prices of quality apartments along with all the inbound off shore buyers.

The advice to those of you looking to downsize one day - do it now before the main wave of Baby Boomers push the affordability envelope out even further.

We all know someone who has bought shares on the stock market only to see the value fall in a market downturn. The unsophisticated investor then focuses on waiting for the investment to return to the initial cost, rather than re-evaluating his current position.

However the astute investor doesn't look at the cost of the investment - because he can't change the past. The focus is here and now - "is the best use of my money now - or could it be better invested elsewhere?".

Certainly the shares currently owned may appreciate over time, however our intrepid investor always looks at alternative situations that may rebound sooner and perhaps pay dividends along the way.

Real Estate markets - like stock markets - move in cycles over many years. The latest upward trend in Canadian real estate lasted almost 10 years. When the inevitable pullback happened - exacerbated by world economic problems - many homeowners found the current value of their properties less than what they paid only a few short years ago.

Because most of us apply a more emotional than business-like approach to our personal real estate, there is a tendency to wait for real estate markets to fully recover prior to even considering a move. Yet it makes more sense to ask the question "is this the best place to have my real estate investment or would another property provide better potential appreciation and lifestyle opportunities?".

While homeowners are waiting for markets to return to balance, and their property in particular to appreciate - as the stock market expression goes - "a rising tide lifts all boats". So when the $300,000 property appreciates by say 5% it goes up $15,000, however the $400,000 one goes up $20,000. This is further compounded by rising interest rates - and they are rising. So in a "move up" scenario, the difference between the property being sold and the one being bought (in the same market) increases and so does the cost of financing the difference the longer one waits.

Our market in the Fraser Valley is trending back to balance and while the statistics don't confirm it yet, there is a stronger feeling of confidence in the marketplace. Our market usually "firms up" from the bottom up so if there was ever a time to move up....well you get the idea!

Headlines read the deal to "open up MLS" and "drive fees down" !

The reality of the marketplace - at least locally - is that negotiable fees and levels of service have been common practice for years. There are lots of low cost / low service providers working in the same market as with full service providers. There are also dedicated for sale by owner sites, for buyers and sellers to "do it themselves" or have an "assisted sale" with or without a REALTOR® involved.

The national newspapers are quoting "average commissions of 5 % " yet we see many flat rate offerings plus our experience is that an "average" % based commissions in this area is more likely to be 2-3 % and less as the properties get more expensive.

What the Competition Commissioner also missed in her overzealous attack on the real estate profession, with your tax dollars, is that there are already a substantial variety of other sources, such as craigslist and YouTube. In fact we use some of those sources to promote our own listings and find we often get more enquiries there than from www.realtor.ca - the industry owned advertising site.

There will always be a do it yourself mentality with a portion of the population - and a great business cleaning up the messes made by some do it yourself and low cost service providers - just like Mike Holmes on TV. There will always be consumers who don't understand that cheapest price doesn't necessarily mean best value.

You can go on to a variety of sites to get legal, medical, financial and other advise yet there are also lots of professionals offering services in those fields as well, so why isn't everyone doing it themselves or using the cheapest service provider. Why aren't well are driving Chevrolet Aero's (one of the cheapest cars in North America? Because it's never just about the price!

The whole object of the exercise isn't about scoring the cheapest fee, its about achieving the best personal and financial outcome at the end of the day in your real estate transaction and there is no single solution that works best for all people. That's why the huge variety of service options exists in this area.

The standard that should apply to all our service providers, including real estate, is that if they don't bring more value to the table than they charge in fees they don't deserve to be involved in the transaction.

Perhaps the Competition Commissioner's staff time and your tax dollars could have been better spent finding out why all the gas prices in this area seem to end up the same at the end of the day, and are usually higher than in Ontario!?

There is simply no shortage of real estate data, statistics, predictions and advice available today - the challenge is sifting through the vast quantities to find credible information relevant to our own circumstances. The purpose of this blog will be to apply the experience and expertise I have gained over 30 years in all kind of markets working with all kinds of clients to specific topics of interest to today's real estate consumer.