How do I take advantage of today's market?
Buy when the market is less active and stop being a procrastinator. Nobody can time the peak market to sell nor the lowest market to buy. Traditionally, no matter it is stock or real estate market, buyers tend to buy when market goes up but hold off and watch when market is less active. I'm sure all the lines up at all the pre-sale project sites in the past few years are still fresh in our mind. Most likely you yourself or one of your friends were one of them too.
One thing I don't get is Sellers tend to sell when everybody is selling which means lots of competition, and possibly less profits for them but hold off when the market needs inventory which is also the time they make the most profit. This type of behavior happens during every single cycle. This also mean "Buyer Opportunity"! Get off the fence. GREAT TIME TO BUY!
When there are reports after reports showing BC is going to have over a million of immigrants coming in the next decade, I have a hard time to believe BC real estate market will not keep doing well. Go to visit my site http://www.tinamak.com/EconomicsAnalysis.ubr to read ANOTHER report on BC real estate provided by Landcor on June 24th. In the report, it says throughout the whole BC, Greater Vancouver, Okanagan & Kootenay regions continue to see an increase in total sales value of residential properties compared to the first quarter in 2007 whereas Vancouver Island, Fraser Valley & BC North/Northwest regions show sales value declined for the first time in the past 4 years. When we all worry about AFFORDABILITY, it is totally healthy to have a less active market and it is absolutely OK to have a little bit of correction. It seems this is the perfect time to have a bit of a cool down market when inventory is high, oil and gasoline prices are high & US economy is weak. I just heard from the news yesterday saying some economists predict the oil price will be coming down by the end of the year. Do you think the next new US President will allow the economy to carry on like this? Well, when all of these are being taken care of by the politicians around the world, the next wave is going to come back soon. Now, question is are you willing to take this great opportunity to help your children to own a piece of real estate before it really gets out of reach? or wait till it's too late AGAIN?
Here is my recommendation to the parents:
If you really believe our real estate market is declining. I would strongly recommend you to go to the bank and get a line of credit on your property when the appraise value of your property is still high TODAY. As I mentioned last week, you don't pay any interest if you don't use it.
Buying real estate is like buying your RRSP, you buy and hold. Very affordable prices can still be found in areas like Port Coquitlam and Port Moody where you have an established community. Price is around $300 to $360 per s/f with insuite laundry. It works out around $240,000 for an approximately 900sf 2 BR apartment. It may sounds far for some of you but there is Westcoast Express train to downtown and new skytrain line to be built in the future. Again, do you want to get in before all the infrastructure is done and price obviously will be increased? or do you want to get in while it is still affordable. For closer to town, Richmond has some really inexpensive apartments. Yes, they are older buildings but if you wish to stay closer to town, you can definitely find listings around the $200,000 and rental allows too.
If you wish to know more, you can call me at 604-412-5860 for a "No Obligation" consultation session to discuss if this is the time for you to buy an investment property or to assist your children to get into the real estate market.
