Real Estate Sky is Falling - All Because of our Government
  
New_mortgage_rules_for_2018
Earlier "stress test" from our government had effectively made it more difficult to qualify for a home when purchasing with less than 20% down payment. Families had to use 4.99% (benchmark rate) to qualify for a mortgage even if their contract rate was at 2.99%.
This does not mean that your mortgage interest rate will be 4.99% but it does, however, mean you have a higher standard for qualifying for a mortgage. Qualify” means that you must prove you can afford a payment at that higher rate.
New "stress test" effectively January 1, 2018 would now affect people who are putting down at least 20% (called conventional financing). These families would now have to qualify at the benchmark rate or contract rate + 2% or whichever is greater. (see PDF above for detailed example and further clarity)
Although overpriced single family homes have started to decline... local Real Estate boards have been posting SOLD price and sales numbers for condo and townhouses still going up. With both of these combined, it would mean a lot of families' dream of home ownership may be out of reach in their near future (even if they were putting down 20% or more).
Multi-Families For Sale - 4 Units and Up
9603-5-9607-9 96 Street - Fort St. John
2040-2046 Bowser Avenue - Prince George
10-16 Little Wedeene Street- Kitimat
7903 95 Avenue - Fort St. John
46167 Cleveland Avenue - Chilliwack
803-805 Oceanview Drive - Prince Rupert
34860-34864 High Drive - Abbotsford
10633-10635 144 Street - North Surrey
7769-7771 Davies Street - Burnaby
1812 W 10th Avenue - Vancouver
10608 100 Street - Taylor
575 Evergreen Drive - Prince Rupert
616 W 7th Avenue - Prince Rupert
397 Aspen Street - 100 Mile House
6-8 N MAckenzie Avenue - Williams Lake
1-8 10204 98 Street - Fort St. John
10219 96 Avenue - Fort St John
3449 14th Street - Houston
681 Edkins Street - Quesnel
46101 Princess Avenue - Chilliwack
1744 Spruce St - Prince George
4502 Lazelle Avenue - Terrace
2072 W 15th Avenue - Vancouver
9827 97 Avenue - Fort St. John
76 Coburg St - New Westminster
1-11 4300 Amblewood Lane - Nanaimo
411 Third Avenue - New Westminster
3618 E Hastings Street - Vancouver
6779 Sussex Avenue - Burnaby
6750 Dow Avenue - Burnaby
1222 Fifth Avenue - New Westminster
7110 Linden Avenue - Burnaby
230 W 10th Avenue - Vancouver
8938 Montcalm Street - Vancouver
425 6th Street -West Vancouver
2600 E 49th Avenue - Vancouver East
12 Reasons Why Rental Properties Are the best Investment
It is no secret that I love multi-family rental properties. Rent-to-own or flipping properties might be fun but rental properties is my true business love. Let me explain why:
1. Ability to Purchase with Leverage
Rental properties are great because you can borrow the bank's or someone else's money to increase the potential return.
2. Ability to Hustle for Greater Returns
Not only can I leverage my cash, but I can also leverage my time and abilities to make magic happen in this game - something difficult to do with other investments.
3. Ability to Manage my Investment Directly
With a rental property, I am directly responsible for the outcome of my investment. It is up to me to analyze a property before I buy it; it's up to me to ensure the property is in a good condition and it's up to me to ensure the property is performing at peak performance.
4. People Always Need a Place to Live
The real estate market will go up and down, but the beauty of rental properties is that demand will never end. People always need a place to live, so unlike the latest tech trend, real estate investment is an investment that will last.
5. It's Worked for Millions of People Before Me
Perhaps one of the greatest benefits to rental property investing is the proof of concept handed down by millions of investors before us. Since the dawn of human civilization, landlords have built wealth by owning and leasing out residential property.
6. Fairly Stable and Predictable
Yes, events such as the market collapse in 2007 do happen, but rental property owners who were investing for long-term gains did not suffer like those who were trying to be fancy and were investing out of greed.
7. Incredible Variety
Rental properties also offer an incredible amount of opportunity within the asset class. I can invest in single family houses, small multifamily properties or large multifamily apartments. The possibilities are endless.
8. Simple and Straighforward
Although I will never claim that working with rental properties is easy, I do maintain that investing in rental properties is fairly simple and straightforward. The strategies for success in real estate investing is not overly difficult to learn or master.
9. I Can Buy Below Market Value
One of my favorite reasons for investing in rental properties is my ability to find properties that I can buy below market value by dealing with the Sellers directly.
10. Insider Trader is Legal
I know I won't end up in jail like Martha Stewart because as a real estate investor I can leverage any secret knowledge I can find to benefit my investments. If I know that a new light rail or rapid transit is moving into a neighborhood, I can jump in and swoop up properties before word gets out.
If I hear that a major industry is leaving an area, I can get out of that area before the market declines.
11. Multiple Ways to Profit
One of the greatest benefits of rental property investing, especially compared with other real estate niches and strategies, is the opportunity to capitalize on all four of real estate's major profit sources:
- Cash Flow
- Appreciation
- Mortgage Paydown
- Tax Benefits
12. Not Having to Be Present to Make Money
Finally, I love the idea that I can make money without physically needing to be present. That's called a "job", and I want to avoid that.
Do understand that real estate is not generally a 100% passive activity, but over time, the systems you create can help you outsource most of the landlording process.
The dollars will roll in whether you get out of bed in the morning or not.
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