As a BC mortgage broker specializing in providing mortgage loan solutions to Vancouver and surrounding areas residents, I get asked, particularly recently, if now is a is still a good time to purchase investment properties in Vancouver or not. The answer really depends upon your purpose.
If you are looking to buy an investment property to flip in the short term and you are leveraging yourself to purchase the property (i.e. maximizing your mortgage loan on your existing property), you may want to reconsider at this time in the market. If you do not have the proper cash flow to support rental vacancies or improvements to the property, you should also reconsider. If however, if you have a reasonable amount of equity in your existing home, or available money to purchase an investment property, have cash flow to support both property mortgage payments should the situation arise and have a long time horizon for owning the property, you can never go wrong with real estate - particularly in Vancouver. History has shown us that while property cycles change and prices fluctuate, even large adjustments recover over time and property has historically risen more than most any other investment. Where people go wrong is when they take money that they don’t have, or borrow to their maximum levels to purchase an investment property they are planning to make a profit on in the short term with no safety net. A quick review of your current financing obligations and evaluation of your goals with the investment property will determine if this strategy is in your best interest. I am here to help. Feel free to call me at 604 649-5991 or toll free at 1-800-687-9020
If you are looking to buy an investment property to flip in the short term and you are leveraging yourself to purchase the property (i.e. maximizing your mortgage loan on your existing property), you may want to reconsider at this time in the market. If you do not have the proper cash flow to support rental vacancies or improvements to the property, you should also reconsider. If however, if you have a reasonable amount of equity in your existing home, or available money to purchase an investment property, have cash flow to support both property mortgage payments should the situation arise and have a long time horizon for owning the property, you can never go wrong with real estate - particularly in Vancouver. History has shown us that while property cycles change and prices fluctuate, even large adjustments recover over time and property has historically risen more than most any other investment. Where people go wrong is when they take money that they don’t have, or borrow to their maximum levels to purchase an investment property they are planning to make a profit on in the short term with no safety net. A quick review of your current financing obligations and evaluation of your goals with the investment property will determine if this strategy is in your best interest. I am here to help. Feel free to call me at 604 649-5991 or toll free at 1-800-687-9020
