Who Should Buy in Today’s Vancouver Real Estate Market?

Who SHOULD Buy in Today’s Vancouver Real Estate Market?

The answer to that question really depends upon your circumstances. I believe that there are four types of people that could greatly benefit from buying in today’s Vancouver real estate market. These are:

1. You want to trade up in the market.

A down market is the classic trade-up market. Yes, you will make less money on the home that you are selling however you will also be paying less for the home that you are buying. The difference will be money in your pocket.

I’ve written a more detailed explanation of the benefits of trading up in the down Vancouver real estate market.

2. You want the ideal home at the best possible price.

You can take your time to find the best possible home in this market. Sales are slow and inventory is high. When the market is hot once again, everyone will be wanting to buy and your competition will be fierce. Now is the time to cherry pick.

3. You are an investor.

Buy when there is panic, sell when there is euphoria. When everone else is heading to the exits is when the smart investor puts their money to work. Besides, where else would you want to put your money these days? The equity markets have taken a pounding. With real estate, you have a hard asset that will always have value…which you can rent and have someone else pay off your mortgage for you.

4. You HAVE to move.

Perhaps you’ve just got a new job in a new area, or maybe you just got married or had twins? Realise that you will be able to make up the money when you buy. You won’t be able to buy a new home unless you sell your old one, so price your home to sell.

Who Should NOT Buy in Today’s Vancouver Real Estate Market?

There’s definitely one group of people that I would recommend stay away from buying in the Vancouver real estate market as it stands today. That is if:

1. You will have to move within the next two years.

It’s never a good idea to buy real estate for the short term. A risky move in any market, a strong buyer’s market is the worst time to own real estate for the short term. The reason is that there are significant costs in moving in and out of home ownership. Most owners rely on increases in equity in order to cover these costs (real estate fees, lawyer fees, appraisal fees, property transfer tax, etc).

Final Words of Advice

Do not try and time the market. No one can pinpoint when the market will turn precisely. If you can find a home you like at a price that you can afford, then you should take advantage of the historically low interest rates. If you wait, interest rates could be higher negating your savings.

Most of all you should take a balanced and thoughtful approach when making a purchase. Sit down and consider all of the pros and cons of owning real estate. Do not panic over media headlines. Make your own informed decisions.

More Info on Vancouver Real Estate

Should you want to learn more about the Vancouver real estate market generally you can check out this page.

If you are thinking of buying or selling, or just have questions, contact me here or send me a quick email.