SURE, THE MARKET HAS CHANGED AND IT WILL CONTINUE TO CHANGE. IT IS THAT VERY CHANGE THAT CREATES INVESTMENT OPPORTUNITIES.
So what is changing and why?
How can you position your investments to take full advantage of those changes?
The biggest change is that in years past, homes were built one at a time. In recent years condos are built 50,70,100 and more at a time.
When hundreds of builders build hundreds of condos there is an oversupply.
You can take full advantage of this by sifting through the ordinary deals and picking the best. The oversupply creates a unique opportunity for the wise investor.
When should you buy?
When most others are trying to sell
When prices have leveled or softened
When inventory is plentiful
When borrowing money is cheap
When the ratio of sales to listings is low.
When should you sell?
You probably should keep all your real estate
but if you really want to sell, do it when:
Most others are buying
When prices are high
When inventory is low
When money is easy to borrow
When the sales to listing ratio is high.
Lets examine the risks
If I buy investment real estate and rent it out and values drop, someone else is renting from me and making my payments. I gain because my tenant is buying real estate FOR me.
If I buy and values stay the same, I gain because my tenant is buying it for me.
If I buy and values increase, I gain even more because my tenant, bless his heart, is buying it for me.
I gain it goes up and I gain if it goes down. Some else buys it for me.
See not rocket science, just real estate.
Where should I buy?
Find out where people want to live most and buy there. More on that in my next newsletter.
WHAT YOU SHOULD BUY NOW IF YOU ARE:
1. A First Time Buyer:
I know you want a fancy new home with all the extras and a big mortgage. NO! NO! Pick a modest 2 bedroom home with a basement suite, on the bus line to UBC Okanagan. There is a good selection under $400,000. The low price, low mortgage rates, and rental income will help pay it off quickly, then don’t sell it. Keep it and use the equity to help buy your fancy house.
2. An Investor looking for cash flow:
Pick a 2 bedroom, 2 bath apartment condo with resort zoning near UBCO. These can not only pay for themselves, but offer a 7% return on your down payment each year. You should buy 2 or 3 over the next few years. Let the renters make you a millionaire in 15 or 20 years.
3. Relocating and have sold your previous home:
There are excellent buys on luxury homes since 82% of the market is between $400,000 and $550,000.There is not much action on the $600,000 and $700,000 homes.
You might also want to consider downsizing to a golf course or lakeshore condo. There are some exceptional homes at attractive prices.
For a BEST BUYS list in each category above, email firstname.lastname@example.org
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