Kill the Killer Commute

Kill the Killer Commute

Regus, the executive office space giant recently conducted a survey of over 4000 senior business people across the UK regarding the cost of their individual commutes. The survey found that the average individual paid 4% of their annual salary towards their commute. They also found that in other locations around the world it was as much as 10% of the individual’s salary for their commute. 10%! A truck load of cash required to get to and from the work place!

Well, it got me thinking…. What is the cost of my commute? I had never calculated or even put any thought into the cost of my actual commute to the office. Would the cost be similar to the business people from the survey, or, would it be more or less. My first thought was that it would be considerably less. My drive to the office is only a short 12 minute drive according to google maps and I consistently travel to and from the office 6 days a week. So, I started looking online for a calculator that would help me with my costs and expenses and came across this great calculator. The site calculated my commute by the vehicle I drive the annual kilometers I commute, city vs highway mileage and fuel costs. It also calculated my insurance and registration, vehicle depreciation and maintenance costs. The number was shocking! My short commute cost $13,963 annually without calculating any vehicle payments or interest charges.

The average Canadian salary in 2014 was just over $49,000. My commute, which is a very short commute, had no car payments, no interest charges, limited service and maintenance, and no tolls. My short commute would have consumed 28.5% of the average Canadians salary! Also, we must remember that the $13,963 commuting costs are after tax dollars. Crazy and Shocking!

I challenge you to calculate your own commute. You may reconsider where to live based on commute cost. What would the cost of your commute be if you could walk, bike, or transit to work? For many, the commute savings may be the financial difference that would allow one to afford a property that appeared un-affordable because of the location, but upon applying the commuting costs it may become a feasible purchase. Applying the $13,963 towards a mortgage with today’s low interest rates would carry a mortgage of almost $300,000! Anybody up for killing their killer commute?

If you have calculated your commute and are considering where you live it is no secret that the 2015 market in the Greater Vancouver and Fraser Valley has been intensely hot. But how hot has it been? Well, the month of May recorded 1969 sales in the Fraser Valley Real Estate Board, the most recorded sales since May of 2007 with 2152 sales. The average number of May sales for the FVREB since 1997 is 1597. The highest recorded May sales volume was 2245 in 2006. The graph below shows the incredible strength of the 2015 spring market in comparison to the previous year’s dating back to 1997. If you have any further questions please feel free to contact me here.  To sign up for our Investor Package and or our Investor Tours sign up here.