Questions I get asked all the time: “is now a good time to buy real estate?” My answer is, it depends. First off you can’t time the markets, nobody can – just ask Ray. Has it happened before? Yes, most of it was probably luck and yes it has happened to me in the past. Buying and holding real estate is for the marathon runners, the grinders, or the turtles. It’s not sexy and you don’t get that instant push of dopamine-like you do when you make a quick trade purchasing some Cannabis shares in the morning on the TSX and dumping later in the afternoon for an instant capital gain. It’s long and arduous and may not seem like fun at the beginning. BUT, it works in the LONG run. That is what matters.
I don’t read the news (I do scan the headlines now and then), but time and time again living in our beautiful city of Vancouver, you will see and read all sorts of opinions about real estate. Before I ramble on about whether or not you should buy or wait, remember one thing. EVERYONE IS DIFFERENT. It’s like eating a slice of pizza, you will get all sorts of differing opinions on the taste, the texture and crunchiness of the dough, or the spiciness or the lack of sauce. Real estate is no different. Understand first the “WHY” and then plan on making a decision to buy.
Here are ‘SEVEN’ KEY questions to ask yourself and your family before taking the plunge into buying real estate for the first time.
- What is my current living situation and can I afford a down payment?
- What is my long term living situation about staying in town or do I plan on moving to another country/city?
- Do I plan on starting a family in Vancouver?
- How prepared am I to make a financial commitment to buy real estate? Do I know the responsibilities involved such as the total cost of ownership (TCO) versus renting versus living at home (no judgement made here – helps you save up for a down payment right)?
- What are my financial goals, one to five to 10 years out?
- If you are a saver and have that chest of cash stored at the bank earning less than 1% (maybe a wee bit more now as I write this), what are your medium and long term financial goals?
- Do you currently rent? If so, what alternatives are there? For example, if you’re paying $2,000 a month for a one bedroom in downtown Vancouver, what would ownership look like? Did you know that only after five years of renting you just put $120,000 cash (after income taxes) into a landlord’s pocket? Staggering isn’t it – these dollars start to add up quickly. Again, I don’t mean to pass judgement to renters as everyone is different. If you plan on living in this expensive city I’m here to make financial sense of it all.
Buying real estate has many benefits and can open up the doors to more opportunities than you can imagine (will share more about this at a later point in time in another post). If you answered yes and have answers to those questions above, perhaps it’s time you consider taking the plunge and maybe even attend an open house this weekend. Many public open houses happen over the weekend from 2:00 to 4:00 pm – check online. Remember, everyone is different which also means the needs of all of us are different. Just start with your “WHY.”
Brian C Chung, CPA, CA, BBA | E: sold@briancchung.com | Personal Real Estate Corporation | Oakwyn Realty Downtown Ltd. | MyfacebookPage
ABOUT THE AUTHOR:
Brian is a Realtor and a Chartered Accountant (CPA, CA). He has over a decade of experience delivering on various audits and risk advisory engagements with both public and private organizations. Brian also was a Product Manager at a local software company and ran his own consulting business prior to converting his side hustle and real estate passion of 16 years into work. He has personally lived and breathed how a person buys and sells a home more than the average person does in a lifetime. Brian is a resident, owner, and investor. Brian is married happily to his wife Katharine and has a daughter.
Disclaimer: This communication is not intended to be and should not be used as investment advice. If you want advice please seek a licensed professional for investment advice. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official position of Oakwyn Realty Downtown Ltd.
