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Vancouver Real Estate -To Buy Or Not To Buy

 

 

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Vancouver Real Estate -To Buy Or Not To Buy

By Larry Rahn

With the escalating prices of real estate in downtown Vancouver reaching never-before seen heights, many hesitant investors are asking the questions, is this a bubble? Will it all come crashing down? Is it all pre-olympic hype? As an experienced realtor who has followed the market for many years, I can say with confidence that this is not a bubble, but a dose of reality for a city that simply does not have enough land to supply the demand for accommodation, now, and in the future.

Many people are quick to compare Vancouver to areas of the United States which are experiencing a ?burst bubble? effect with an increase in foreclosures. Some may say that we will follow suit because of recent gains over the past few years. It must be noted, however, that the situation in the United States is extremely different to Canada. For example, the majority of home buyers in this dire situation provide the lowest possible down payment, or even borrow more money than the property was worth. Even the slightest change in interest rates can have an extremely damaging effect. In Vancouver, a common down payment on a piece of real estate is 20%. That?s REAL money down versus creative financing in the US.

With the soaring increase in construction in the Vancouver, particularly concentrated in the Yaletown and Coal Harbour areas, there is the fear that supply will flood the market. There are already approximately 1800 units in development slated for completion in 2008, 90% of which are already sold, and almost 1300 units in development for 2009 of which 82% are sold. The market is NOT OVERSUPPLIED, the demand is still very much there, and between that demand and the rising cost of construction, the prices keep rising. We are now faced with a situation where the only potential development sites left in downtown are BC place, the Plaza of Nations, and Port areas.

It is reasonable to wonder how a unit that cost $300,000 three or four years ago could cost $500,000 today. The cost of construction has risen so much that a developer could not build the same suite for $300,000 today. Take a development like Yaletown Park in Downtown Vancouver. That development originally sold for $325 per square foot. Today, it would cost a developer $750 per square foot, leaving no choice but to increase prices. In Coal Harbor, the Fairmont development has already broken new ground by selling some units at over $2000 per square foot. That is TODAY?S prices, not ten years from now. The demand is there, and the $2000 per square foot ceiling has been broken.

Finally, the 2010 Olympics will have the largest impact on Vancouver real estate for years to come. Although it is only a two week event, the money and exposure it will bring to our city is priceless. The world will be introduced to Vancouver as never before and the infrastructure that comes with it in transportation improvements, new venues, and conferences will remain with our city.

When if comes to investing in real estate, there are two types of speculators: one who buys and hopes that the property goes up and then there is the one who is a position to buy but doesn?t for fear the property value will down. In my opinion, not buying when you can perhaps is the bigger risk. The world has its eyes open to Vancouver, and it is my goal to assist future clients in what will be the most important financial decision of their lives.

About the Author: Vancouver Real Estate Agent – Larry Rahn http://www.mrrealestate.com

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=169943&ca=Real+Estate 

 

 

 

Over the last few years, property rates have gone high for both the purchases and rentals. Rental property is hardly possible to be found in the Vancouver regions because of the high demand among people who arrive from different regions and want to spend their days in this beautiful town with natural sceneries all around. Such a demand among people has obviously raised the cost of the real estate in Vancouver, which will lead to the buying of different properties for purpose of investments. When people set out to buy a commercial or residential property in the region, simply choosing one and paying the amount quoted by the previous owner or some realtor is not the way to go about doing transactions. Before setting into the deal for rental property or purchase, there is the need to rethink on certain matters of importance.

? Studying the real estate scenario is quite essential in any place, where people are aiming to put down a deal. For both commercial and residential properties, people should check out the current going rates of land or houses in the region of Vancouver. Information on current pricings can be received from the real estate agencies in the area, newspapers of the locality, or asking people who already stay in the region. With background information in mind, people can now go down and meet with a realtor for starting the transaction.

? Since the real estate which people need to purchase should be seen personally, preferentially, it should be checked out before finality on the prices is reached. Having looked at the property personally, people will not be misled after the transaction is over. This kind of land scams are quite possible in areas where a huge demand and price rise is common for real estate. Payment needs to be done only after confirming that the property is the same for which the business is being conducted and the papers will be handed over immediately.

? Picking the real estate agency is one more caution that is required in the approach of buying Vancouver real estate. Due to the boom in the real estate sector and price rise in significant amount, there have been cases of customers being taken for a ride by the agents. In order to circumvent any such possibility, customers are required to check out from friends, internet, personal recommendations, and by personal visit, about the credentials of the real estate company.

In the zeal to own a commercial or residential property in Vancouver, people need to conform to certain principles so that they are always on the safe and profitable side. Although these are many, yet the ones mentioned are things that should be necessarily followed, if people were to undertake a fruitful and real transaction. It is always important to be careful because investing in real estate is quite costly, and lucrative, which could be enticing for some elements to bring in a fraudulent means of earning.

 

 

Did you find the article useful? Vancouver real estate is not as straightforward as some people think, so you might want to do some reading on the subject. As you learn more about vancouver real estate, your understanding of the subject will increase, and so will your confidence.

Thanks for reading the article. And please, do come back again.

 

 

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