Every market holds opportunity, the key is to know where to look for it…
Today’s greatest market opportunity resides in purchasing detached homes.
The detached market has been the most impacted both value, and activity wise across the board. The causes of this have been discussed already at great length; but in short they stem from the B20 stress test mortgage rule changes, a lack of consumer confidence, and other government intervention into the real estate marketplace. This has resulted in an excellent time for two real estate moves, first to upgrade from condo, or other strata property (which are still very active), or second to purchase detached as an investment property. The rental market remains strong, and we have had some clients secure amazing deals on detached homes, and rent part of the home or all of the home and get excellent monthly cost coverage, and some are cash flow positive.
We have also helped a number of clients recently upgrade from strata property to detached houses, as the price gap is smaller than it has been in years. (See the graph below- looking at Vancouver East for Example) So the marginal mortgage increase in property price is not a large as it once was (especially when you consider basement rental etc.), in fact it is smaller than it has been in years. When the market confidence returns, as it always does, this gap will grow/spread again, and this opportunity will pass.
We would be happy to meet with you and discuss how you could take advantage of this market opportunity to upgrade from your strata property to a detached house, or to purchase an investment detached house.
Current Median Prices as of March 31, 2019