The Vancouver House Market Boom!
by Eric F.
In the Vancouver home buying business it seems that investors are leading the charge, some buying an estimated 10 or even hundreds of properties. The payoff these investors are looking for is to sell them at peak, Olympics 2010. There are many smart and also greedy builders along with realtors that are holding some major home inventory. They sell them slowly to maximize profits so they are the ones actually helping to drive up prices. Now lets not point the finger at them alone it takes more then just saying this group or that group. It’s about educating yourself on the tactics of the real estate market.
The same thing happen in the US where there was an abnormal buying frenzy for years, every one was looking for pay dirt. Sadly many of the amateur and realtor investors got caught with properties no longer worth what they paid. Now I am not saying money will and cannot be made but it’s risky for many trying to make big money on real estate in Vancouver. It’s like playing the stock market for some it’s a living but for many it’s a gamble, just remember it’s a major investment for an up and down market.
Do you know that renting in Vancouver is cheaper then owning, as there are huge cost associated with owning your own property. Not to mention those who own multiple properties and even rent those out until they can sell high. Renters will find themselves having to leave properties they call home so the seller can gain the greatest yield, who could blame them. It’s always a good idea to ask questions up front and read your rental contract closely if renting from a private owner in Vancouver.
So now imaging the prices peak then start to drop, imagine the panic in Vancouver because no one is interested in buying your property. So no longer can owners afford the heavy price tag of their investment and they start to sell but normally along with everyone else. Eventually the owners are forced to drop and wait for offers along with everyone else in the same position. Of course the professional investors would never let on that something was wrong with the housing market because they do not want to show the truth of dropping home prices, it would send many a buyer running scared. So they will hold properties until the smoke clears. If the big investors start to sell it will create an even a bigger panic and their properties will weaken further, so it’s best they time it just right. I would not want to be an investor that had to offload 3 homes let alone 30 around the housing downturn. No longer will offers be flying in the door but no offers and very few people coming to look due to the extremely high availability, it will boil down to comparables and location.
Right now the interest rate is still comparatively low and Asian and Europe economies are doing very well but who knows what will happen, take heed of our neighbors to the south. The bottom line is properties in Vancouver are currently over valued comparatively, most certainly inflated when compared to other cities. It’s a wild card decision to invest or even buy in Vancouver right now with interest rates and the overall world economy. So just investor beware, time it right or get caught in the aftermath of the Vancouver housing market slide.
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