Where the buys are

In this market, there are bargains. Many potential home buyers are sitting on the fence right now largely because of bad news from south of the border about the crisis in the financial and housing markets.

British Columbians are so worried, we have recorded our lowest level of consumer confidence in seven years.

Signs of the real estate market slowdown are on everywhere from For Sale” signs on almost every block to few customers in condominium display suites.

But, in crisis there is always opportunity. If you’re a potential homebuyer, this could be your opportunity to find a bargain.

The good news is although our local economy has slowed, it is still growing – at a rate of about 2%. In 2009 alone, experts predict about 31,000 newcomers will move to BC. Vacancy rates have also dropped to a low of 1%, the lowest in Canada

That means whether you are planning to buy a home to live in or as an investment, now could be the best time.

So where are the best buys?

They are in most neighbouhoods. Start by contacting your Royal Pacific REALTOR®. We’re the experts and we know the market. Whether you are looking for a brand new condominium, a suburban bungalow or a fixer upper, a Royal Pacific REALTOR® will help you find exactly what you’re looking for at the right price.

We’ll also tell you to tell you how long a home has been on the market and whether the seller has dropped the price. We’ll tell you which locations offer the best bargain and which types of units – detached, attached or apartment – are the smartest buys.

Why buy now?

Since 1977, when the Real Estate Board began publishing its average price chart, there have been dips in the market. But, as the Price Chart illustrates, prices have consistently been an appreciating investment over time.

Royal Pacific’s two steps to a good investment

Know your costs: calculate all of your expenses. This includes your down payment, appraisal, survey and hone inspector fees, legal fees, strata fees, painting, appliances, as well as the Property Transfer Tax and property taxes. Can you afford it? We can help you to make your decision.

Know your ROI: if you are buying an investment property we can help you determine your ROI. For example, if you buy a home for $300,000 (you have a $50,000 deposit) and you rent it for $1,800 per month, the cap rate is 8.64% ($21,600 / $250,000). The rule tends to be if you get less than an 8% cap rate, you will be paying out more than you take in every month. That’s because if you have a $250,000 mortgage, at a rate of 6% amortized over 25 years, your monthly payment will be $1,628. You will need to add insurance and upkeep, and if it is a strata unit, strata fees.

Contact us, we'd love to hear from you!

For more information on this article or how we can help you with your real estate needs, contact your Royal Pacific REALTOR® at 604-266-8989 or use our online form for 24/7 service Contact us