What Do You Mean “It’s Not Always The Best Idea To Buy Where I Want To Live?”
What Do You Mean “It’s Not Always The Best Idea To Buy Where I Want To Live?”

If you are living in or investing in BC, now is the time to think about your next step thoroughly. Micro markets across the province will have many swings. There is potential to make a lot of money over the next 5 years if you play your cards correctly – however, there is just as much potential to lose a lot of money. The difference will be:

1. Asking the Correct Questions: Unfortunately many across the province who are trying to see which way their market is going are approaching the real estate market from the exact wrong direction. Asking the wrong questions – and allowing the answers to direct them to very poor decisions. If you find you are asking the same questions as everyone else (i.e. “Is There A Bubble In Canada?”) – then that’s not a good sign. It is important to ask much better questions than “The Masses.”

2. Choosing Your Source of Information Wisely: Be mindful that you don’t get caught up in confirmation bias. Make sure you check multiple information sources to ensure that the conclusion you’ve reached is truly correct (and is not just the information supporting your personal belief).

3. Making A Clear Distinction Between Where You Live and Where You Invest: In many cases, where (geographically or type of property) you WANT to live may not be a great choice for a long term investment property. It may be that in fact your capital is better put in a market with a ton of long term potential – and you rent where you want or need to live. Yes, there are tax and financing issues that come into play in this decision, however, if you wish to maximize your overall returns on your available capital, make sure you are asking the right questions (see #1 above).

Sophisticated investors know to dig deeper than the average investor. Memes don’t become facts in their world and they do this by not thinking like everyone else. Sometimes their investigations lead to sitting on the sidelines and waiting and other times they uncover signals that say to dive right in (while everyone else is pulling themselves out of the water).

One thing that I can tell you is this – there are some markets in BC that sophisticated investors are jumping into and others they are avoiding completely – just by asking the correct questions.

As proof that the conversation takes over people’s lives as they sit in fear of any market condition, below is a video of when I sat down with Lynn Colliar on the Global BC Noon News Hour to chat about the state of the BC real estate market and why you should invest your money where it’s going to work the hardest. The funny thing is, the video is as true today as it was on October 28th – 2012 – when it was first aired.  With a serious lack of NHL hockey again this year (as referenced in the vid) and a perfect Vancouver spring weather setting up… the inevitable conversation heads to real estate in Vancouver. Check it out and see the similarities. (including the Top 5 places to invest in BC back in 2012) Enjoy!

If you are tired of just seeing the surface of what happens in the BC real estate market and you’d like to know more so you too can ask the right questions and come to the correct conclusions of whether now is a good, bad or average time to be in the real estate market (as a home owner or an investor), join me and my team at an upcoming Real Estate Investment Network Event. We’ll be busting myths, tackling the economic fundamentals and laying down a rock solid strategy that will remove the risk and increase the reward as you grow your real estate portfolio. Or call our office for more information or research support 1-888-824-7346 or visit www.acrelive.ca to register. Hope to see you there!

What Do You Mean “It’s Not Always The Best Idea To Buy Where I Want To Live?” was last modified: April 12th, 2016 by maddy
 

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One Response to “What Do You Mean “It’s Not Always The Best Idea To Buy Where I Want To Live?””

Andrew says:

April 18, 2016 at 6:47 pm

Excellent post Don.

I have always wanted to live somewhere downtown, for example, near the Yonge and Wellesley area.

But frankly I see better value in the Etobicoke area these days.

 
 
 

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