Statistics Canada calculated the 2011 annual % change in CPI as 2.9%.

For PAH owners this means that the resale price formula used to calculate the value of PAH properties each year (annual % change in CPI x 110%) is as follows:

PAH homes increased in value by 2.42% in 2007,  2.53% in 2008, 0.33% in 2009, 1.98% in 2010 and 3.19% in 2011.  What does this mean in dollars?  Let’s use the example of a $200,000 PAH home.  Each year the PAH values are compounded which means that at the end of 2011, the maximum resale price of the home would be $221,742. That’s an increase of $21,742 in five years. And don’t forget the equity built by paying a mortgage rather than paying rent.

Just another reason to Get on the List!