Monday, May 11, 2009

A Goodbye to the Good Buys!


In a recession all the talk is about when will we reach the bottom.
The truth is we won't know until after it happens.
But... does it really matter?
If you buy a rental property then your tenant is paying for it.
Why should you care how much he is paying?

In a recession all the talk is about when will we reach the bottom.
The truth is we won't know until after it happens.
But... does it really matter?
If you buy a rental property then your tenant is paying for it.
Why should you care how much he is paying?

We know that:
Prices are down from the peak reached last year.
Interest rates are the lowest in 50 years.
There is an abundance of properties available.

This creates the illusion tht there is no hurry to buy.
Fear of the future is everywhere: recession, global warming, unemployment and swine flu.

But fear is: False Expectations Appearing Real

Reality is: This is a perfect buying opportunity.

Find a distressed owner. There are no distressed properties only distressed owners. Make an offer that solves their temporary problem and results in a good buy for you. Now the property is no longer diressed.

It is an opportunity for you.

In the Okanagan-
48% of real estate buyers are local
28% of real estate buyers are from Alberta
20% of real estate buyers are from Vancouver

The Alberta and Vancouver buyers are rubber tire traffic. They are affected by things like high gas prices and snow on the mountain passes.

Spring is in the air. The Rogers Pass and Coquihalla are snow free. Gas prices are relatively low.
The Alberta and Vancouver buyers will be back.

The Okanagan still has:

* Canada's best climate
* Large warm lakes
* Championship golf courses
* World Class wineries
* Big White and Silver Star ski resorts
* Kelowna International Airport
* UBC Okanagan
* Afordable real estate
* Low interest rates

Its time for you to make a good buy before its Goodbye to the Good Buys!

Some Stats to Ponder: (courtesy of OMREB)

Year to Year Comparison

Property type:

----------------Avg Sale Price --------Avg Sale Price ---------Avg Sale Price
------------------April 2007 ------------April 2008 ------------April 2009
Single Family ------455,641 ---------------552,526 --------------451,109
Condo Apt ---------259,147 ---------------287,819 --------------248,642
Condo Twnhouse-- 333,891--------------- 409,021 --------------344,261

Month to Month Comparison 2009

Property type:

----------------Avg Sale Price ---------Avg Sale Price---------- Avg Sale Price
------------------Feb 2009 -------------March 2009 ------------April 2009
Single Family -----447,819 --------------- 438,493 ----------------451,109
Condo Apt --------233,268 ---------------244,433 ----------------248,642
Condo Twnhse ----328,546 ---------------328,611 ----------------344,261


It would appear that the market peaked in April/May 2008 and has bottomed in February/March 2009 at approximately the 2007 levels and is gaining strength.

Is this the end to the Good Buys?

Bert Chapman
Office: 6-3185 Via Centrale,
Kelowna, B.C, V1V 2A7
Phone: (250) 765-0570
TollFree: 1-866-765-0579
Fax: (250) 765-0577
Email: bert@pcrealty.ca
Website: http://www.premiercanadianproperties.ca/

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