Retiring to Victoria....? To Buy Now or To Buy Later, That is the Question?
If you are planning on retiring or relocating to Greater Victoria BC at some time, the next important question is......
When is the best time to Buy in the Victoria Local Market?
Well, the correct answer depends on a number of issues:
We know that for making a smart real estate investment decision, you want to buy low, add value you to the property and make it pay for itself.......
Here are some key considerations:
- Where do you live now, and how is your local real estate market?
- If you market values are going up, and where you are buying the prices are low...... It might be a Good Time to buy.
- Would you be financially able to buy now or in the future in Victoria , while remaining where you are until you retire?
- Do you have or Can you raise enough down-payment that if you bought in Victoria, you could generate a positive cash flow from your investment?
- Would you emotionally be able to buy now, rent the property out until such time you are ready to move to Victoria....?
- Are you comfortable with being an out of town landlord, with no hands on influence on the day to day operations and goings on at your Victoria Investment? We can help you wth that.
If you can Say YES to the above Questions it might be time to seriously consider to buy your future Victoria Home sooner rather than later.....
Let me explain why..... Here are some Facts:
- Victoria is one of only very few communities, where currently the average price is currently lower now than last year....(that won't last, it never has)
- We know that interest rates are and will continue to be low (until the national economy rebounds, which will happen at some foreseeable time)
- The Current inventory of great homes in excellent locations in Greater Victoria has not been this good for years.
- There are many Home sellers hoping to downsize so good rent able homes are available in prime locations.
- Greater Victoria Rental Vacancy rates are traditionally very low (1-5%)
- Property manager are available to look after your property investment.
Let's take an example:
There is a legal duplex (2 units) for sale at $ 499,900, let's assume we could buy this at $ 490,000 with a 25% down payment for a mortgage of $ 367,500. which would have mortgage payments at approx. $ 2,137 (using 5% interest rates over 25 years)
a duplex like that would easily rent for about $ 2,400 to $ 2,600 per month...
As this is now an investment property the interest payable would be tax deductible (as will be all operating expenses. so you are owning a piece of Vancouver Island Rock at no real coast to you other than the down payment....
I can hear you say, yes but I do not want to live in a duplex when I retire....... I hear you, and you do not need to..... it is your choice and just an example at this time.
So lets look at say a 5 year period that you hold this property, and over
that period the property has a very conservative value increase of 5% per year..... by the time you are ready to retire or relocate to Victoria the property will be worth..... $ 625,000 and chance..
Not bad for an actual cash investment of $ 127,500, not bad at all.
If you live in a community where the average price now is say $ 360,000, and you market also appreciates at the same 5% rate 5 years from now your local investment will be worth just shy of $ 460,000, as you can see over the 5 years, buying in Victoria would have gained you approx $165,000 over the same time.
Now if you can do the same thing in your home town..... go for it, that is smart investing in your future....
If Victoria will be your future home town it might be time to take advantage of the current lower prices as property values will likely be appreciating at the same or faster in Victoria than your home town.
Peter and Linda Pfann would love to show you how we can offer you Pfanntastic Real Estate Service and Results
Here is a link to the Victoria Real Estate Board Statistical Reports, and published every month.
Planning to buy, sell, upgrade, downsize, invest in real estate or relocate to Greater Victoria, and need information about your present or new area of choice?....... No Problem.
Peter and Linda Pfann now offer a FREE Pfanntastic Internet Service, keeping you informed about Greater Victoria Market Activity, includingnew listings, current and recent sales, price adjustments, statistics, graphs and a variety of additional handy real estate tools for your benefit. This absolutely Free no hassle service is completely customized to your specific requirements.
We call it Victoria Market Snapshot, and this amazing little tool will ask you a few questions, and provides you with an updated snapshot of the property type(s), location (s) and real estate market activity as per your requirements.
The Pfanntastic Victoria Market Snapshot Service is Free, The Information is Invaluable, Request Your Victoria Market Snap Shot Right Now!
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