BUYING REAL ESTATE IN TODAY'S MARKET
with Cyril Rocero - MaxPro Real Estate - Winnipeg Realtor
Is it the best time to buy real estate now?
If you ask an experienced investor, they always tell you that the best time to buy real estate is 5 years ago. During the pandemic year, prices of homes sold in Canada have ridiculously spiked very high exceeding tens of thousands to hundreds of thousands more than the asking price. Therefore, imagine if you had invested and bought multiple properties, vacant lands, commercial properties, and other investments in real estate from years before, you could be laughing now by selling them in today's market.
I'm not an investor, is it still good to buy real estate now?
I get it, we all want to take advantage while the mortgage interests are still very low, but now everyone wants to buy a property too and it just became a wild competition out there for all home buyers. I suggest not to become over-aggressive and land on winning but too over-priced property. You might realize later that even though you got a low-interest rate from banks, you still end up paying a high monthly mortgage due to a very high purchase price. Always consider that if anything unexpected happened and changed your lifestyle financially, there's always a risk of losing your beloved home and force-sell it for a lower price.
Investor's number 1 rule, "buy low, sell high"
In the event of undergoing challenges or downfall for example loss of work, divorce, bankruptcy, etc. and you may need to quickly sell and liquidate your assets, then you are forced to sell your property at a low price and lose. This later becomes an opportunity for investors to bargain for a lot lesser than your asking price so they could sell this property later when good timing comes again like the timing now. If you bought an over-priced property, it may take you a variable of 10 to 20 years to wait for the market to get back the correct valuation just equivalent to your purchase price (depending on how over-priced you bought the property).
How can I buy a property in today's market and not lose despite of high prices?
Be more strategic than emotional when buying a property. Write an offer with the amount that you are only comfortable buying. Overcome your mortgage payments by investing in a duplex or triplex, renting out space in your house, or utilizing it to generate more income by fostering kids, home care for elders, or holding foreign students.
If I want to become a real estate investor, what are my options?
Buy and hold - Invest in rental properties like a duplex, triplex, or multi-family.
Flipping - Buy a cheap property that needs fixing but with good potential after the improvements.
Build & sell - Buy vacant land or with an old house to be demolished, we could design and build the house to be sold later for a profit.
BRRRR - Buy, Renovate or Rehab, Rent, Refinance, and Repeat!
If you need help finding the best properties that fit your choice, I would love to be at your service.
https://www.bestwinnipegrealestate.com/
