Housing is becoming dangerously unaffordable in Vancouver. The price growth for real estate has been the world’s highest so far! This is a highly intimidating situation for a would-be home buyer. Many would – be buyers are putting their dreams on hold until the situation is under control. But will the price rise stabilize? OR will it keep increasing?
There are many who think that prices of this magnitude can never keep rising and yet there are some who think that it’s just a phase and the bubble will one day definitely burst. Some others think that the prices will continue rising, but at a steady rate – not as drastically as it currently is.
So, will buyers who do not make an investment now, be left behind forever? Will investors have to wait until the bubble actually bursts? Unless there is an economic collapse or an exponential rise in interest rates, there is no way the rise in the real estate rates can be stopped.
So, for those who are planning to buy now, even though you know that there is a possibility of a bubble burst that will lower the housing rates, here are a few things to consider:
1. Finalize your budget. This means that do not overstretch yourself. Look for properties that you can comfortably buy. There are plenty of options to consider, you can look for smaller room sizes and make some adjustments in the location. So, first fix a price range that suits your pocket, and then look for the list of properties that fit that price range. This will give you some space to breathe – even if the interest rates go up!
2. Increase the amount of down payment you will pay. Get as much help as possible and ensure that your down payment is substantial. It’s really worth it. So, even if the rates go up, the price of your property will be more than the mortgage and you will not default.
3. Real estate investment is always a long term investment. The house is yours – but that does not necessarily mean that you need to live there. You can always rent it out and live in any other locality that is suitable to you. Well, it’s important to remember that home prices keep rising and falling, so even if the price of the home is lower than what you purchased it at, after you have paid of all the mortgage, it’s yours! You can live for free! You can even rent it and gain income.
So, if you are in Vancouver, and are planning to buy a home, there is no need to be intimidated by the skyrocketing rates. Living as a renter all your life is terrifying enough! It’s like you are helping pay off someone else’s mortgage. So, break free and plan a budget for your dream home in Vancouver. It’s definitely going to be worth all the money and efforts you put in.
As a Vancouver Real Estate Agent, Naz’s speciality includes homes for sale in the Vancouver Westside, Burnaby, North Vancouver, West Vancouver, and as well as condos in Downtown Vancouver.
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