I’m not trying to be glib or minimize the hardship suffered by many when the economy retracts and job losses abound; rather, I’m attempting to provide a helpful reminder of a (harsh) reality; if you can afford to buy a property between now and over the near future (a year?!), it is my opinion that you’re essentially buying property at a discount. After all, just ask yourself: “If I buy this property now, is it going to be worth more – a lot more – in five years’ time?”
Bet your bottom dollar it will be.
It never ceases to amaze…
One of the most surprising aspects I’ve observed since obtaining my Realtor License is to witness first-hand the psychology of my clients. For example, when prices were ‘high’ and increasing, everyone wanted to buy; now, as prices have dropped, everyone is hesitant. Ironically, their
reactions, interests and intents ought to be the reverse. Logic dictates (albeit with a 20,000 ft point of view) that the recent zeniths and nadirs of residential real estate prices are both over-corrections; I contend that a more balanced (dare I say ‘fair’) market will assert itself as soon as interest rates stop rising. I am predicting this (again, it’s only my opinion) as consumer confidence (both from a purchaser and seller perspective) can only become entrenched when there’s more cost certainty in the market. After all, nobody wants to pay more than they feel they might have to – nor does anyone want to sell something at a larger discount than required. And it’s amid this quagmire of uncertainty that the opportunity exists for an astute, organized and confident buyer. You need to look past the short-term price decreases and muster the courage to invest for the long-term.
Always do something today for which your future self will be grateful
If you are sufficiently fortunate, prepared and wise to be considering buying in the current market, be in no doubt that you have considerable leverage to negotiate favourable terms. Still, with the guidance of a Realtor and a mortgage specialist, it would be prudent to include condition(s) (i.e., an appraisal) in any offer. One such example might be to insist upon a condition of financing to ensure necessary funding be extended to match the terms of the offer. After all, without such a protective condition, a buyer may have to increase their down-payment should a bank’s appraisal come back much less than the negotiated price (regardless of limit of pre-qualification).
Don’t wait. Once you have your $hit together, be bold.
… but if you are in a position to purchase but elect to wait for a period of greater certainty, prices will have started to rise once more and you will therefore have missed out on the opportunity to maximize on your investment. Don’t forget the fact that the chronic shortage of properties (relative to immigration) will continue to be the proverbial tide that lifts all boats (and will continue to be for many years to come). You have to think on a macro scale – which can be difficult, I recognize. This is a fundamental influence in our market that, while recently fallen out of the news, has not been rectified; to forget about this factor and neglect its longer-term influence is in error. There you have it. Yet another reason to lead rather than follow the herd. And you don’t even need to do it alone. Assemble a team of supportive, informed professionals and grow your wealth through real estate. Remember, growing your wealth is akin to buying yourself time at a later date when you’ll be free from having to work. And isn’t having the choice to not work if you don’t want the ultimate sign of success and freedom?!
You can do it. Ask me how.