TO BUY OR NOT TO BUY (That is the question)
Posted by Michael Tourigny on
If you are debating whether or not this is a good time to buy a home or revenue property, consider these three, very important points.
NEED: This is Paramount. What is your reason for buying? A transfer, a recent wedding, a new baby? Any of these three reasons would suggest that you should be considering your move sooner vs. later. If your needs are less urgent, then you should be more conscious of timing, and how to use it to your favor. We all know that buying in a heated, frenzied market or in a falling market (both of which, we have just come out of) are not good ideas. If your need is for an investment property, then this should be done with lots of good advice (that’s where we come in) and patient due diligence. This may even be a good time for you to be leveraging equity in your current real estate to buy another, and another.
TIMING:The perfect time to buy is when few others are, and when the market and interest rates are stable, as they are now. Too many people wait too long for prices to fall, or fall further and then find themselves out of the market. Keep in mind that real estate markets exist independent of other markets (we’ll expand on that more below) and are cyclical. History has proven that the market sees an aggressive shake up every 7 years or so. However, if you track the market over a longer span of time, (over 2 or 3 cycles) you will see that values are always up.
BENEFITS:Most home owner’s biggest increases in their net worth come through their real estate investment(s). Ask your mom and dad how much they paid for their first home. Not all jobs or professions have big pensions at the end of your working years. Equity in your real estate investments can serve that purpose. Lots of sage investors are using income from their investment properties to finance travel, home renovations, grandchildren’s educations philanthropic interests or car collections.
WHAT SHOULD YOU DO NOW?
1. Get pre-qualified. Even though there were murmurs from the bank of Canada about raising rates this year, the economy hasn’t shown enough strength yet or signs that it can shoulder an increase. Prequalifying gives you the peace of mind that if rates do go up, yours won’t, and if they go down, you’ll get the lower rate. We can steer you toward some lenders who we feel would be working in your best interests.
2. Contact us and have us put you on an auto email program to track current listings (It’s free). We will be sending you daily updates on the product type and price range that you are interested in. We also have access to Realtor listings prior to and often sold before going on MLS. It won’t take long for you to recognize trends in prices and supply to help you know when to invest. You’ll soon learn that real estate markets are local in nature. What drives or impairs a market in one part of the country doesn’t necessarily affect another. At the time of this writing, prices in some parts of Ottawa were on the rise. But that doesn’t resonate on the Toronto or Vancouver markets. Micro markets even exist within the same city, behaving independently of the area norms. In Victoria, BC for instance, even though the price of single family homes in Langford had been inching up, the average price of townhomes in Vic west is dropping. If you’d like to know more about prices in a certain area, please contact us and we’d be happy to provide you with some data.
Overall, as much as we love selling real estate, we love investing in it even more. Contact us to find out our picks for up and coming areas and properties that we feel are candidates for substantial equity gains.