Why the Timing is Perfect to Invest in Real Estate in Vancouver
Nowadays I hear the same reason for why investors are holding off; the interest rates are just too damn high. I can’t blame them, on the surface, it’s a tough thing to look past and since it’s one of the first steps when it comes to investing, it makes sense that most people don’t get past that step.
I, on the other hand, see a massive opportunity that will pass most people by right under their noses. I challenge you to look past the interest rate and how the market will look in the next five years. Will interest rates be higher or lower? Will prices go up or down? What does it all mean?
Economists are expecting the Bank of Canada interest rates to start dropping early in 2024. Along with those drops and housing becoming more affordable, demand is sure to increase as people start to buy property ahead of the masses when the interest rates drop to 5%. Now another few months will go by, maybe a year or two, and when interest rates drop to a point we can call “normal” again, even below 5%, it will bring along a surge of buyers who have all been waiting for this moment. With the demand of all these buyers in the market and, as we know, supply is fixed or growing at a very slow rate, property prices are sure to shoot up given how many buyers are actively trying to purchase a home.
At that point, many people will once again see the rising prices of real estate and say “Now isn’t a good time, I’ll wait until prices calm down”, and sure enough the prices may stop surging, but nearly all of them will look back and think “I wish I had bought this property before the prices shot up”.
This is the time when savvy investors are looking at the market conditions and deciding to hold off. This is the time when savvy investors recognize a TEMPORARY problem, think what it means for their investments in the years to come, and take action to profit off the current conditions as well as the common understanding of waiting to purchase property.
Everybody has different needs and goals when investing in real estate. If you are unsure how you can play the current market to your advantage, reach out to us and we would be happy to chat about different ways you can be successful in today’s real estate scene.