|
Despite moderate ups and downs in Vancouver real estate over the past decade, many investors viewed real estate in the GVRD as a money maker. However, since the economic downturn that started in 2008, continued rising prices in Vancouver have inhibited people from buying investment real estate regardless of potential profits. Compound gains of 7.8% support the notion that Vancouver real estate is a growth market, especially considering national average for Canadian real estate investment tops out at 6.8%. Furthermore, the average Vancouver house valued at $296,000 in 2000 more than doubled in price by 2010. Still, these dramatically rising prices have basically created an exclusive club for real estate investment as few individuals have the finances available to devote to such a sizeable investment. However, this is not to say that Vancouver real estate investment is a bad idea. With foreign interest along with other growth factors, housing prices in Vancouver should continue to rise. The market has been traditionally difficult to predict, and while gains such as those seen since 2000 may not be a reasonable expectation for future growth, investors feel confident that Vancouver real estate will remain strong. There are even firms today that attempt to make real estate investment more available to the common investor. Add to this the fact that the market appears to be trending toward a buyers' market, and there are certainly investment opportunities to be had. With the introduction of the HST, Vancouver real estate sales stalled to a degree. Whereas there was a somewhat artificial burst in sales figures and first-time buyers hurried to purchase before the HST was instituted, now there seems to be something of a lull in sales. Yet despite this lull, prices for Vancouver real estate continue to show strong year-over-year gains. Ironically, these gains obviously have a negative impact on sales figures as properties become less affordable. And some stark facts about Vancouver real estate are becoming fodder for debate. Vancouver has the highest housing prices in Canada coupled with the largest price increases and it's no wonder the city is considered to have the world's least affordable housing prices. Clearly, despite a reasonable argument that Vancouver is a solid region to invest in real estate, there is growing concern that people are inhibited from investing by skyrocketing prices. Relatively quickly, Vancouver has transformed from one of the most liveable cities in the world into one of the most expensive. And yet, prices continue to grow even in the face of economic difficulties. Indeed, the future of Vancouver real estate is yet to be told, but as it stands there is little reason to believe that trends won't continue in the same way: rising prices make Vancouver an attractive place for investment real estate while simultaneously preventing many from investing.
For more information on Real Estate Investment in Canada please contact Canada real estate investing company Platinum Properties Group.
|
