Is it worth to buy now in this market

Havan8655

Focused Investor
Registered
May 3, 2016
43
5
8
#1
I am wondering is it worth to buy now in Fraser valley area as a buy and hold strategy for personal residence and convert to rental later in this present seller market ? Any thoughts appreciated!
 

Devin Roberts

Devin Roberts - Brent Roberts Realty
REIN Member
Nov 17, 2015
47
22
8
#3
Detached is forecasted to continue to drop.. but no matter what time it is, NOW is the time to buy. In the long run a few months or even years difference is often a very small impact


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Matt Crowley

Senior Forum Member
Registered
Dec 14, 2013
793
293
63
Edmonton
#4
Uhh... those are not good answers guys.

There is a time to buy, hold, sell every asset. Some assets are uninvestable. There is no short position that can be taken in SFH.

Holding a SFH in Fraser Valley is destined to be a cash suck. Yields are too low, maintenance and cyclicals too high. Investing like this is going to basing your return 120% on appreciation because you will probably lose 20% of your capital during operating and selling the asset. So the question is how deeply are you willing to bet on appreciation as your sole , completely undiversified source of return?
 

ThomasBeyer

Senior Forum Member
REIN Member
#6
Prices are starting to come off all time highs, mortgage financing is much more difficult to get. Supply is starting to moderate. Seems like opportunities are on the way!

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Indeed they are but nuanced local knowledge required as some markets flat, some up and some down.

Don’t look at averages.

People have drowned in rivers one foot deep on average! (TM)


Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com
 

bb2

Frequent Forum Member
REIN Member
Sep 10, 2007
115
70
28
edmonton
www.vivarenttoown.com
#8
I agree with Carla. I bought a property in 2008 that I paid 360,000 for. It’s valued at 320,000 right now, but in 10 years I have paid the mortgage down and have had positive cash flow from day 1 (with 20% down). I don’t need to sell it. I will sell when the market improves or when the mortgage is paid off. I have pretty much bought properties every year since 1982 in Edmonton. I have yet to lose money on any property in Edmonton because I have a long term vision (let’s not talk about the property I bought in Brandon Manitoba...)


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