Real Estate in 2018: Is now the right time to invest?

September 26, 2018

Great real estate investments are nearly always about timing. One of the greatest benefits to real estate investing is that it’s probably one of the more accessible ways to invest using borrowed money.

 

Why now?

 

If you read my monthly market updates you will have noticed that the Greater Vancouver and the Fraser Valley markets have been on a downward trend with prices softening and returning to a more balanced market. This gives a tremendous opportunity for people to buy property when the prices are low and eventually sell when the prices are high, by leveraging their current equity, making it a great time to invest.

 

How do you leverage your equity to buy an investment property?

 

With the help of a financial expert, you can leverage the current equity in your current assets and focus on buying cash-flow positive properties.  That means buying an investment property that allows you to rent it out. The income you get from renting out the property covers all your expenses, including the mortgage, taxes, insurance, maintenance, repairs, and a contingency fund. That way your property will be making money for you whether house prices go up or down—so hopefully, you’ll never be forced to sell in a down market.

 

Talbot Stevens, financial educator and industry consultant believes real estate can be a wise investment under the right circumstances. He stated: “Real estate investing is like a mini-business that doesn’t have a lot of complexity to it. For the average person, real estate can be a good strategy.” His comments were in relation to the smart use of leveraged investing to increase your overall net worth.

 

Where are the best places to buy investment properties today?

 

This is always the key question to ask, where is the best place for me to invest? If you look at the market today the best potential areas to invest are the following:

 

Greater Vancouver:

  • Detached homes in Port Moody which as of August is a buyers market of 5% with homes on average selling 3% below list price.
  • Detached homes in West Side which as of August is a buyers market of 8% with homes on average selling 9% below list price.
  • Detached homes in East Side which as of August is a buyers market of 7% with homes on average selling 3% below list price.
  • Detached homes in West Vancouver which as of August is a buyers market of 5% with homes on average selling 4% below list price.
  • Detached homes in Richmond which as of August is a buyers market of 7% with homes on average selling 9% below list price.
  • Detached homes in Tsawwassen which as of August is a buyers market of 10% with homes on average selling 1% below list price.

*Condos in Greater Vancouver are still a seller’s market as of August 2018.

 

The Fraser Valley:

  • Detached homes in South Surrey / White Rock which as of August is a buyers market of 8% with homes on average selling 7% below list price.

*Condos in the Fraser Valley are still a seller’s market as of August 2018.

 

What’s Next?

 

If you are interested in learning more about how to buy an investment property, feel free to give me a call and we can discuss your needs!

 

 

Disclaimer: All Stats provided by Snap Stats, the market can change at any time, the current stats are a snapshot in time. Always consult a financial expert when it comes to financing and leveraging your property for investment as I am not a financial expert.