Quote:
Originally Posted by connect2source
cornholio, my responses were in reply to GilmoreStations request for advice. I base my advice on a vast amount of past experience but don't predict future values or future rates of interest. I highly recommend real estate purchases, be it pre-sale or re-sale as long-term investments and 40 years of data clearly illustrates long-term investments in real estate in Greater Vancouver produce solid gains.
I don't recommend flipping a pre-sale upon completion for many reasons including the fact that it doesn't fall within my long-term strategy and it's typically a terrible time to sell as many others are doing the same which means a lot of competition and the risk of a 'distress sale' comparable.
Holding a real estate asset for 5 years or more will very likely insulate you from a correction as it did for my clients in 2008.
If you want a Realtor who recommends a short time or 'flip' strategy, you're talking to the wrong guy.
|
You did not answer my question.
What will be the effect on re sale prices of pre-sale units bought today, when upon completion interest rates will be around 4 points in Canada, as opposed to the 0.5 points today?
We are in the early stages of normalization, this is not news, it has been well known that this will happen since 2007. It was supposed to happen 2012ish, thery pushed that back to late 2014, then to 2015. Then more delays. Now the wheels have begun to turn. The US is at 1 point today and will almost certainly have 2-3 more rises this year alone. They are shooting for 4 points as a goal right now.
good paper