(October 15, 2013
When it comes to real estate, everyone has a point of view. What gets to me is how often people rely on other people’s opinions rather than the facts. We allow the media to control the way we think, and often, the media is driven by the desire to sensationalize a story in order to sell newspapers and/or get your attention. It’s their job and they do it well.You have no idea how many times I have watched the news or read my local newspaper only to be dismayed at how a fellow realtor’s words have been misconstrued or misused. That is why I am writing this blog.I want to give you my point of view; you may agree with me or not, and that’s OK. I am only going to look at the facts and let you decide for yourself where it is you stand.Today I am going to talk about North Vancouver.Looking at the numbers, I can tell you that the market has been pretty steady throughout the year; albeit we did see the market peak in April and August. As it stands today, demand has decreased slightly, while inventory has gone up. Market remains balanced.If I had all the cash flow in the world, I would be buying a house in North Vancouver right now. Interest rates are still very low and that makes affordability possible. If I were starting out, I would prefer to purchase and house with a basement suite. In my experience, you would be looking at at least $900,000 in order to get a good house like the one I bought.Given that at 3% over 25 years, your monthly payment per $100,000 is $474/month, I would be looking for a basement suite that would yield at least $1,500/month. That’s the equivalent of approximately $300,000 of my mortgage. For argument’s sake, let’s say interest rates go up to 5% after 5 years. Then, per $100,000, your monthly payment is only $582/month. After 5 years, your mortgage will be lower, and you will mostly likely be charging a bit more rent. From where I am sitting, it is still affordable. If the numbers make sense to you, go for it! So there you have it. If you have the means to buy a house today, do it! It will be the best investment you ever make!!! You own a piece of land, have your tenant pay for a portion of the rent, and you live happily ever after.… and that is my point of view.