Could A Real Estate Slowdown Actually Help Investors?
While we’re becoming accustomed to the stories about slower home sales and declining property prices, it doesn’t all have to mean bad news. If you are an investor thinking about getting into the property game, these very things that are making some people nervous could actually give you a leg up on your venture. There are ways that the downturn can really work for you.
Property is Less Expensive
Property prices across Canada are dropping. If you have your own capital or a way to finance your purchase, this may be the time to act. First-time homebuyers may be put off by the downturn, particularly if they must use conventional financing. But, look beyond the media hype and you might find a silver lining, favoring investors.
Rental Market is Stronger
Some potential home-buyers are choosing until the market stops dropping and instead are staying in the rental market. That’s good for you if you are buying rental property. Currently there is an avid interest in this part of the real estate market, with some vacant units getting 20 or more inquiries. The real estate market as a whole may be cooling, but the rental market is definitely heating up.
Buyers are In the Driver’s Seat
Certain parts of the country, particularly Vancouver, Montreal and Toronto, are fast becoming a buyer’s market. Even properties that are experiencing bidding wars often go for below the original asking price. Sellers, particularly those who have had their listings up for a while, are just accepting lower offers. That means great deals for investors.
Low Interest Rates
Canada’s interest rates are still at historic lows. There are also fewer buyers seeking financing, so the lending agencies and banks are hungry for business. Investors in the know believe that the time to buy is now.