QUOTE (RedlineBrett @ Apr 29 2010, 04:18 PM) Prices have been trending upward since the market bottomed out in early 2009. See this graph for some numbers going back 24 months.
http://redlinerealestate.ca/files/Statisti...lended_2010.pdf
You aren`t going to `hit it big` in the next year... but you aren`t going to walk into a lush `field of deals` by any means either. Those days have come and gone and (in my opinion) our market is heading towards a period of slow steady gains in the 3-5% range.
If you have a specific property type you are considering your best strategy is to start to watch the local market you want to trade in. Looking for a condo, townhouse or single family home in a certain community? Well I would start watching sale prices of those to get a feel for your next purchase. Watch the days on market and list prices for `no issues` properties... do the same for `handyman specials` and your money will get smarter the longer you are paying attention. Your realtor can help you with this.
Real estate is not like watching the stock market... you can`t chart prices month to month in an effort to time it because the `human factor` plays a much greater role. There can be motivated sellers and motivated buyers that skew data.
I know it`s not the black and white answer you`re looking for but I`ve worked with a lot of new buyers and in my opinion thats the best way to make the most of your money and know that you got the best deal you could for your situation. I`d say if your ownership timeframe is short (like a year or two) then hold off because you won`t make enough gains to cover transaction costs on a sale. If you are going to hold this property for 2 years or longer then look to get in as our outlook is promising.
Brett is telling you about the market in general. My view is that investment properties in Calgary are still falling in value and that they have not yet bottomed. Part of the problem is that with these low interest rates many renters want to buy instead; especially now that interest rates are about to rise a bit. Rents are still falling. So, don`t be in a hurry and when you buy, do so with enough d/p or safety margin to hold on to the positive cashflow or break even. My favorite LTV is 65 to 75%. It costs you in ROI, but it will help you sleep. And.. making 100% on nothing is still nothing so a bit more money down does not really hurt.
Also, there are still many investors out there that have bought in 2006 and 2007 and although they`re bleeding they are unwilling to sell at a loss and prefer to hang on. The question is how long they can do so before they have to sell at more realisitic prices.
