Top 4 reasons to buy today **
MLA - Stats Can (FEB’23) – 50% of property owners have no mortgage
– highest equity position % in Canada
– escalated to this % post pandemic
– has never been this high
What does this mean? MARKET Stability!!!!
- The market can afford to hold prices high and not add inventory.
- boomers are staying in their homes and reverse annuity borrowing to lend to kids to get them into market and NOT downsizing to condos at mass.
Convoluted numbers & info out there62% ownership / 38% rental??? – lagging indicators….**
Rest of the market are owners w/mortgage & renters, they don’t have the leverage that the top 50% have over market flexibility.
1 (start building equity) Time in the market, not timing the market (there is never a good time from the outside looking in) (CAN’T pick tops and bottoms of markets – you CAN start building equity and taking steps towards Canadas greatest tax break, the tax free capital gains) Can you say there has been more than 5-10 times in the past 20 years that have been good entry points specifically? Everyone will say they should have just bought sooner.
2 (you will have the flexibility to buy up once rates soften)When rates come down things will get busier as affordability returns market will pick up & prices will rise again. More people will have easier access to cheaper money. (people are currently locked into their homes due to rates. The largest segment of the moving real estate population is the up-sizing of real estate, this has paused with the current rates stress testing at basically 8%) new buyers are only terming for 2-3yrs for this same reason
3 (Positioning yourself to win when the market increases by buying good Real esatate sooner) – inflating money supply will push prices When you Take your time searching and buy into a good property, it will serve you best when you sell it. (nurture the property, vote accordingly & keep the property up to date. Not only your unit but the building at large) –strata-- less building restrictions the better (pet/bbq/rental etc) keep your buyer pool as large as possible-sales 101- biggest asset you are likely to own.
4 Giving yourself future options- Now that you have this equity building machine just chugging along with the market you can breath a sigh of relief. You can live in the home – renovate the home – rent out the home fully or partially. Rent out a room, finish a basement suite…. Or sell for more
Random facts:
Inflation
June 2023 – 2.8%
July 2023 – 3.3%
Mortgage interest costs up July 2022-july 2023 +30.6%
Purpose built rental supply
(2019 report) Secured purpose-built rental homes are units in buildings, often in entire buildings, that are specifically dedicated as rentals. They should not be confused with basement and laneway house suites or condominiums that are leased by homeowners.
- 18.5% of homes in Vancouver
- 25.7% of homes in new Westminster
Burrard bridge project (6000 + rentals) & Jericho lands (3900+ rentals) rental supply contributions…
BEFORE MARKET RENTALS COME ONLINE!