RECAP: what happened in the past months?
Hello all family, friends, and fellow investors, this will be my last blog for 2016 as we approach the end of the year! I want to take this time to recap on what has happened in the real estate market both in Canada and in GTA as a whole these past few interesting months.
As an investor, the big one was obviously the 15% land transfer tax for foreign ownership in Vancouver back in September. It seems that Vancouver has cooled down a bit in terms of price appreciation. However, the true long-term effect, in my opinion is that it is still too early to tell. We have to see what happens in the spring market. There are still many factors to affect the true effect of the changes that have happened and with only a few months’ time, we still do not have the complete picture. Will GTA also react similarly in hope to cool down the price appreciation and the speculation in the market? Only time will tell.
The second big issue homeowners (and investors) had to face with is the mortgage rule … remember on Oct 17th we had a new federal rule change that involves a stress test for all insured mortgage applications to ensure the borrower can service their debt if interest rates rise? This mostly affects the first-time home buyers (as well as those who are first-time investors purchasing their first property) because it lowers the amount that they are allowed to borrow. Yes, it will definitely put more pressure on these individuals, especially financially, in terms of their ability to obtain a mortgage loan, but nonetheless, if you can qualify, you are still in the game! So, keep your credit in check and have enough down payment so that you won’t have to go through the same stress test.
I can’t stress enough – do your due diligence first! Whether you are first time investor/buyer, you should be prepared for whatever obstacles and problems your property may throw at you! And for those who are still on the fence whether you should buy or not, I truly believe that no matter what happens in the real estate market, there are opportunities. Instead of worrying about what will happen (which is really out of your control), you should be thinking HOW we can benefit from this change. If Vancouver real estate market tanks, maybe it’s time to buy. If people can’t afford to own, maybe it’s time to increase your rental portfolio.
As I say “adieu” to 2016, I wish you all an early “MERRY CHRISTMAS” until I see you again in the New Year! I am looking forward to my much needed time off during this holiday season to enjoy the special moments with my family and friends! Hope you will too and God bless everyone!
Best wishes to you and your loved ones … see you in 2017!
With love, from all of us at CE Properties