2012-11-09



Sharing some real tips with home buyers for buying house in Vancouver.

Vancouver, BC - When you go out to buy a home just for your family and are unsure whether it is the right time, the short answer is that it does not matter. You need help from some indicators that can give you pointers when you are needing a home and you can afford it, thereby being an investor.

There are some "old hand" investors in the real estate who always focus at several key issues, which are considered as kind of indicators, such as:

1. Listings number! If the Vancouver listings number is dropping in the "multiple listings service" (MLS), then it might mean the market is cooling down, the home's average price will go down probably.

2. Always mortgage rates! You can save thousands of dollars if the mortgage rates are the lowest. Vancouver real estate investors benefit from cash flow from the low mortgage rates.

3. Historic data! If the prices of the last three months are stable, that could be a signal, which indicates the Vancouver Home Prices have bottomed.

In a overheated real estate market (just like last decade in Vancouver), you will be saddled with bidding wars on your favorite home and you need to fight for it. But it's not as bad as it seems. There are maybe one or two instances when the Vancouver real estate market takes a break and this is usually by the end of summer, September, when the sales activity is lowest. For this reason it is important that you act then and grab your home, because it stays on the radar longer. After that, the home can be yours typically between October & November.

Apart from September the other great time to buy property from Vancouver real estate is December. You will find sellers left over from the summer months who would be glad to sell property. Also, at this time, people will be very focused on the selling and agreement part and not just test the market for the sale price for their property. Because this is the slowest time of the year, you can find a great bargain for your price by contacting sellers who just want to sell their property.

The market does not feature that are aggressively priced and attractive for long. There are only about 15% of the homes that are priced well. Buyers of today have a plethora of options and the sellers will love all the offers that they can get.

You may be apprehensive about prices falling in the short term, but if you've made the payment and you don't move, there is no realistic "loss". It's the days of buying and selling that really matter, and whatever happens in between is of least concern to you. For this reason alone, you must get into property that you genuinely like and not be bothered with market conflicts, because in the end, the property would be to your liking and you can stay in as long as you want. As always, profit will be yours if the market price goes up.

Long-term appreciation: You must remember that the long term goals are what you should be gunning for. Short term view can more often than not put you in a state of loss. If you bought a house to hold it in then the market fluctuations do not matter, especially if you've had a house for more than 25 years.

Over time, factors like you income and market price increase while your mortgage rates decrease. The market prices don't matter, because you have free hold over your property when the tenants leave it! With Vancouver the vacancy rates are 0%, so your investment is funded by someone else. The investments of your Vancouver real estate can even surpass your lifetime and there are few investments that can boast of this! With increasing monthly rents and decreasing mortgage rates, your income gets a terrific boost.

The Vancouver real estate market saw some tough times but its alive and kicking now. However, the price segments are not behaving in the same way. The upper end of the property segment is seeing higher and higher numbers, while the lower segment is going through turbulences.

Always exceeds inflation, the growth of Vancouver real estate and historical investment return figures are testimony to that. Add to that the fact that Vancouver is one of the most sought after cities in the world to live, so investing in a Vancouver property leads to wealth returns of a good order.

You gain by just buying and holding your property and this applies even when the market is not in its best form. The fluctuations in market do little to your property and it even generates revenue for you in the years to come, making it a safe proposition.

Because your homes are safe and secure, people will always be ready to pay you money and this is known as leveraging, that is, using other people's money. There are no risks at all. With the power of leveraging, your property keeps on growing, and you get better and better returns as time go by!

In the light of tightening of the credit, talk to the bank about the mortgage rates. Also, a broker would be beneficial for you to get loans for the property you need to buy. This will enable you to buy the home you wish when the fruit is ripe.

There are also tax advantages when you buy home in Vancouver , and these advantages are given below:

For Principal Residences:

Take your profits out tax free - You don't need to pay taxes on the capital gain of your home when you are living in it. These tax free dollars can further help your growth and the tenants that live in the basement add to that wealth! You repeat this process by moving to another house and continue for one or two years.

For Investment Properties where you do not reside:

Tax deferral - Similar to RRSPs, you are not taxed for real estate properties till you sell. Your investment thus grows without tax every passing year. You can even re mortgage the house and buy a line of credit to get another one, and the tax free paradigm again comes to effect.

Get 50% of your profits tax-free (Capital Gains) - Unlike income from your employment & interest income from GICs, Bonds, etc (100%), your property gets gains from capital gains, because you are taxed only 50% of the whole. This is a significant gain!

Tax Deduction advantages- There are many tax deductions in investment properties. The finance and operating costs like property management fees, mortgage interest, repair and maintenance, property taxes, etc are the main targets.

Although property in Vancouver costs higher than other cities, you will still find areas that are priced competitively. What's more, these areas are easy to find because there are a lot of them. Real estates that are good at their job will have these areas handpicked for the customers so that the customers don't have to search that much.

Open eyes and an open mind is all you need when you go out to shop for properties in the Vancouver area, and as a result you will be unaffected by the ups and downs happening in the real estate market, because you will be equipped with the necessary know how as to when and how to get the best deal for your dream property. Just remember that Vancouver real estate market has its ups and downs.

This does not mean that you should start worrying. Property is a long term investment and that's where your focus should be primarily at. The disadvantages discussed here are the short term effects of such a scenario and they all gradually fade away with time.

Vancouver buy house

buy house in Vancouver

Vancouver buy home

For more information on Housing in Vancouver, please visit http://www.squidoo.com/housing-in-vancouver or http://www.house-vancouver.com/

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