Should you Buy or Sell Now?
Tuesday May 09th, 2017
Welcome to T. A. Zaidi's BLOG !
My BLOGS and comments are usually very controversial and I receive alot of comments either criticizing my thought or appreciating the other side of the stone thought. I always believe that each one of us should think differently and open our thought processes to understand every issue. Optimistically thinking and thinking out of the box leads to many new ideas and methods of facing challenges.
In my recent BLOGS, I always been very optimistic and I'm still strong and very optimistic about the current Real Estate Market. Its usually my behavior or attitude, as some might like to term it, that I tend to address issues always when the entire hype of a certain topic has been discussed and many views have floated in the market. So having said that, I would like to address the most talked about issue and the current hot topic of dicsussion at every social gathering. Weather conditions and how its affectig us has all been shelved, but, REAL ESTATE is the talk of town, and its so funny that when I go to social gatherings I hardly end up eating anything and return home hungry looking for food. My well wishers, and critics gather around and are ready to prove me wrong.
Should I buy now or Sell my Real Estate investment? Should I sell my home now and cash out with the money I've made? All these questions only arise when many are not confident of the decision they've made, and many just want a topic to discuss knowing that they wont sell nor buy. My team and I have put in alot of hours in research and have come to the following conclusion.
You can sell your house in which you live, if you want to either upgrade or downsize. Sellers like you will always be there in the market and there will always be buyers looking to either upgrade or downsize. The question is when is the right time? If you are moving because your kids need to go into a better high school, or your job is relocating you then sell now because people are looking to buy and are using the new TAX Legislation as a magic wand where they can trick you into selling at a cheaper price because Foreign Buyers are going to be taxed. Please note that their ideology for tricking you into selling cheap shouldnt work merely because when such legislations are passed, they are meant for FOREIGN BUYERS and Ontario only has 5% of them, the rest are local. But if you need the money for a certain reason sell quick by giving away a few thousand dollars in discount to satisfy the buyer that yes the legislation has taken effect and here you go. Mind you selling quick is possible at all times, the new Legislation shouldnt be a reason for that.
Should you buy Real Estate? definitely ! Buy at all times because Real Estate never dies, it becomes ill - which is what people feel is happening right now. In my research, the market will halt, but will not fall and please do not let that sink into you. A Real Estate Investor is one who has money and who has the capacity to take the risk to borrow more than his/her means. So a risk taker or an Investor with money will hold their investment. They are Investors only because they have wealth, so if this legislation comes into effect they will simply hold their property longer and sell at a much higher price than today. Anyone who cant afford anything today will still not purchase later because sellers at that time will ask for their apprecaited prices.
If the supply doesnt increase, the shortage will further increase the prices. A foreign buyer will buy with the 15% tax included looking at it as his cost of business. The Canadian dollar is already at a 20% discount due to weak currency, the US dollar is becoming stronger, making the LOONIE further weaker. What is happening now is that the market is just taking a deep breath and relaxing itself, waiting for those nervous and un-advised sellers to sell their property cheap. The wise buyer will jump now to take advantage of the legislation, the looser is one who gives into this legislation thinking that the market will collapse.
The market will not collapse, it will halt, adjust itself and back on the race track. We are still cheaper than the world, our currency is getting weaker, global crisis put Canada as the best haven on Earth right now, Immigration is on full swing. Do the maths, do you think you would want to sell cheap? I suggest let's get on the buying bandwagon right now and meet those desperate sellers who have been advised by un-professional Realtors to sell cheap.
Should you Invest in Pre-Construction now? Why not? when the banks are lending money to the builders to build then why should you consider stopping? Why would bank loan, knowing the market is collapsing? Why would those huge lineups take place on the builders' doorsteps the day after the legislation was announced? The answer is simple, they have wise and intelligent Realtors advising them, and for those pessimists, they will still not purchase when the market will be rock bottom only with a fear that what if the market never went up again. Call me and discuss in detail of how to stay optimistic and on top of the market in a fearful market like now. Fear has always been hovering over Canadians when it came to Real Estate, but its about time I talked you out of it with a nice dose of what I'm doing with my money in times like these.