When stocks drop 20% in value overnight, then rebound, only to drop again…
When the price of oil drops precipitously but the price of gasoline doesn't…
When the value of gold is measured in US dollars, so its rise in value only indicates an erosion in the value of the troubled dollar….When governments bail out financial institutions….
What should you do?
You can still live in it, rent it out, borrow against it at reasonable rates, and grow veggies on it. You can still sell it if you are satisfied with a modest appreciation of 50% if you bought in the Okanagan in 2005. Or 30% if you bought in 2006.If you bought in 2007, you can get your capital back plus 5-10%.
That's if you paid cash.
Since most of us didn't, we gained even more through leverage. Eg: If we invested $60,000 as a down payment in 2005 in an average home valued at $300,000, it has gained 50% in value to $450,000 for a profit of $150,000. Since we only invested $60,000 to gain $150,000, our return on investment is 250% in 4 years.
So….what does the future hold?
I don't know for sure, but using 10 years of history as a guide in the Central Okanagan…any losses in value occurred slowly, were not of catastrophic proportions, and were followed by orderly increases to considerably higher values. The cycle since 1997 resulted in a 300% increase in average house values from $164,500 in 1997 to $500,000 in 2008. See graph 1 on our website: http://www.pcrealty.ca/
In Vancouver, where stats go further back, the cycle has occurred 3x from an average price of $90,000 in 1977 to $808,000 in 2008 for a 900% increase. See graph 2 on our website: http://www.pcrealty.ca/
In good times it sets the pace for investment appreciation in slow times it retains its value and can be rented so others can help you buy it.
Take advantage of today's financial turmoil. Invest in some solid Okanagan Real Estate.
Remember …Location, location, location.
In the words of Wayne Gretzky…"Don't go to where the puck IS.... go to where it will be!
"That's great hockey sense and intuitive investment advice! People want to live in the Okanagan. You should get there first and buy real estate.
More information on the web:
Premier Canadian Properties http://www.pcrealty.ca/
Okanagan Mainline Real Estate Board http://www.omreb.com/
City of Kelowna http://www.kelowna.ca/
District of Lake Country http://www.lakecountry.careal/
Estate Board of Greater Vancouver http://www.rebgv.org/
Office: 6-3185 Via Centrale, Kelowna, B.C, V1V 2A7
Phone: (250) 765-0570
Toll Free: 1-866-765-0579
Fax: (250) 765-0577