Blog post March 3, 2015;
This year is looking to be a great one! Why you might ask? Home prices are falling in Fredericton, Tax Assessments are too high, and practically everyone that is looking to sell TODAY that has bought a home in the last 3-5 years is really feeling the pinch.
So.. why is this to be a great year? Because now is the time to start your activity. Interest rates are low, high ratio mortgages are still available, and a home that WAS worth $225,000 last year could sell for 10% less than it would have last year.
I look at all homes as investments such like a stock or a bond. Wouldn’t you as an investor be happy if the price of Apple Stock started to come down? I know I would. It would be the optimal time to buy stock. This can be viewed in the same sense.
This is a perfect time to upgrade. If your mortgage is portable, you might be surprised what you could get for the same payments you’re making now.
This is an IDEAL time to get into the rental game. With more listings on the market, real estate investors (who for the most part are getting near or are at retirement) want to cash out. Many of them hold clear titles with little to no balance on their mortgage. The surplus of homes on the market means they have to get a little more creative to sell. I know of over 20 apartments in the city at this very moment that aren’t on the MLS, and where the owner would hold a second mortgage on the property.
**Usually I wouldn’t recommend a VTB mortgage, but with rates low, prices coming down, and even the cost of a second mortgage not all that high (not to mention rates have NOT dropped for us anyway). All of these factors mean your net ROI when you’re talking about Cash + Equity is better than it would have been for quite some time.
Now is the time to buy in Fredericton. This market will turn around. With the government, Universities, health care sector, and core economic factors we have here in this City, the market will come back up. And when it does, you’ll look like a genius for upgrading or buying that rental property, today.
**Please speak with myself, or a Lawyer before performing any of the actions mentioned in this article.
If you liked this article, please do me a tremendous favour and SHARE it to your Twitter/Facebook or G+ account! The social media buttons below will do it with 1-click!