More than one Canadian community had no trouble balancing its municipal budget this year thanks to real estate. This financial boost to some local economies may also be their undoing in the long run.

"The price of real estate has gone up so high, and a lot of people are coming in and buying a lot more property, so taxes are higher," said a second-generation landowner and farmer with acreage on Ontario's Manitoulin Island in Lake Huron. "The tax base has increased too. They don't have to worry about balancing the budget anymore because they have a lot more in taxes to work with."

This seemingly positive outcome of the real estate boom has a downside that may out weigh the revenue increase.

"The young people on the island can't afford to buy a house, there isn't any reasonable rental available and there aren't any high-paying jobs on the island so they can't afford to live here and they leave," said the environmentally-committed farmer. "Consequently, there aren't a lot of young people on the island to do the work. If you need your yard mowed, your roof fixed ... where do you think you'll find people to do those jobs?"

Before the last real estate boom, Manitoulin Island was a largely agricultural land mass bridged to the Northern Ontario mainland. Historically, "The Manitoulin" has been a lifestyle, cottage and holiday favourite for those who wanted to really get away from it all. Toronto buyers searching out affordable vacation and second homes invaded this and many other rural areas across Canada attracted by affordable waterfront and quaint communities.

Many sold expensive urban real estate and bought similar or more prestigious locations and amenities for a fraction of the proceeds of their urban home sale. The difference between selling and buying seemed enough to live on comfortably.

The current gas crisis, with its resulting increase in travel and food costs, is among the financial and lifestyle factors that many of these "country" buyers did not factor in. Before you consider a move to a more rural location, investigate the world beyond your new property line. Lack of public transportation may not be the only significant difference to adjust to outside major centres.

With a declining workforce, hiring the quantity and quality of staff necessary to service the expanding population is a challenge for local businesses. Property owners compete for the often dwindling number of service professionals and home maintenance specialists. In many cases, the problem is aggravated by seasonal pressures.

Populations often double or triple in summer months and dwindle to the hardy few that don't escape winter by snowbirding. Can entry-level jobs be filled by post-career part-timers drawn by new challenges rather than big salaries?

Lower Shopping Diversity: Rural areas lack the variety of businesses and services that urban dwellers often take for granted. From movie theatres and convenience stores to coffee shops and medical clinics, there are fewer services and less service on the whole. Chains like Tim Hortons and Walmart tend to drive local small business under in the battle for limited shoppers' dollars.

If your relocation includes a new business venture, contact economic development offices at all levels of government for input before you finalize a real estate purchase. What are the limiting factors for growth in the area and how are these being addressed by short- and long-term government projects and policies? Will online shopping and a web-business model be enough to offset local limitations?

People Pollution: The quaintness and quiet of small communities is often replaced by malls offering the same shops and services available in locations across the country. The sameness that settles on the land is the most frightening type of environmental pollution since it can undermine the uniqueness of a neighbourhood or community.

Large scale cookie-cutter developments put pressure on existing local amenities like rinks, schools, water supplies and garbage removal services. Rural real estate with open-horizon vistas may end up hedged in by tract housing. Before you commit to a property, find out how adjacent lands are zoned, and what local government's development policies and history are. How close to capacity are local services and amenities running now?

Economic Shifts Hit Home: Plant closings are acknowledged devastations for small communities however, plant openings and expansions may change an area and wipe out the very features that attracted property buyers in the first place. Road closings and re-routings can also dramatically alter the character of an area. Investigate ongoing relationships between the municipality and industry, and inquire into long range plans for development of the area. Study relevant industry sectors to see how each is growing, changing or shrinking.

For instance, British Columbia's Port Alberni, located mid-Vancouver Island at the head of a deep Pacific inlet, has become a popular lifestyle relocation destination. Current economic pressures may bring an end to transoceanic shipping to Asia from this port and cause job loss in the paper mills and other businesses that relied on this cost-effective transportation alternative. Explore the full impact of the loss or expansion of local industry, however remote that may seem, before you commit to an area. How vulnerable are the features that attract you?

"Hot real estate" may be the designation that leads to destruction of the elements that made it "hot" in the first place. Real estate buyers who follow a trend may benefit from investigating how sustainable it and their chosen community will be before they follow the crowd.

Published: May 6, 2008

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Strategist and Futurist is The Catalyst -- intent on "Helping The Best Get Better." An internationally-recognized "new retirement" authority, PJ's research, writing and speaking programs focus on decisions Baby Boomers face to achieve a successful future. Author of 6 books, PJ knows that, since home is headquarters for the "new retirement," professionals and consumers need relevant knowledge and insights, along with solid decision-making skills, to protect and enhance this private oasis. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more, visit TheCatalyst.com.