Real estate in Canada. To buy it or not to buy it.

Andreia Brazil

I have always believed that buying real estate is one of the best investments regardless of whether the economy is in crisis or presents a stable picture.  In my opinion, it is always a good time to acquire a property here or anywhere else in the world.

In this issue, I was asked to give you, readers, some “tips” about the acquisition of real estate here in Canada, so I decided to share with you tips that I follow and feel comfortable sharing with you.

Here are my best tips for immigrants who dream of home ownership in Canada but are afraid of what can happen to the real estate market in 2018

Tip #1- Knowledge is Power! Do your homework. Search for information on what differentiates a good mortgage from a bad one.  A mortgage broker can help you with that and will pre-approve you and make the whole process of buying a house less complicated. With the help of a mortgage broker, you will be prepared to qualify for the best products available in the market.

Tip #2 – Use a mortgage broker to do the shopping around for you. It will save you time but most importantly, it will provide you with more options. It is very important to understand the contracts offered by the banks and it is crucial to have a mortgage broker working with you to advise you of any hidden traps. Did you know that there is no cost to use a mortgage broker? Why not take advantage of this professional expertise?

Tip #3 – If you are thinking of buying a property here in Canada to sell it in 1 or 2 years with the intention of making quick money, good luck! “Successful Flipping” only happens on HDTV channel. I love that network!

Tip #4 – Stop paying rent. If you are paying rent but are working full time, earning + – 50,000.00 per year, have some established credit and have 5% to give as a down payment, you can buy a property of up to $300,000.00. Maybe this is not a reality in Toronto or Vancouver but it is certainly possible in other areas of Canada. This property may not meet all of your needs, but it will undoubtedly be the first step to a better property. Over the years, the property value increases ​​and you will have a larger down payment for the ideal property. Everything is a matter of planning and prioritizing.

For those of you that read Tip # 4 and are thinking that it’s crazy what I’ve suggested, you might change your mind after Tip # 5.

Tip #5 – If you buy a property today and if the price falls in the coming months, you can be sure that the price will rise again. The real estate market in North America undergoes a phenomenon every 9/10 years where prices inflate a lot, everyone is scared, and many people make a lot of money. Then, many people lose the opportunity to buy a property, the economy becomes the focus of attention in the media and a rumor of a possible “bubble” starts scaring and confusing people making them believe that the bubble will burst and the properties will lose their market value dramatically. Well, Canada has suffered this phenomenon a few times and will continue to suffer in the next …… years ahead. In fact, this phenomenon happens to several places in the world, as the years pass the currency loses its value and what seemed to be ridiculously expensive today happens to be a bargain in a couple of years. Everything is a matter of perspective.

Tip #6 – Do your homework. We can only study the past and speculate on the future. Research the market value of properties that were sold in the 60s, 70s up to now and you will see this real estate phenomenon happens decade over decade. My point is, those who purchased a property 30,20,10 years ago made lucrative real estate transactions. I believe that those who buy real estate today, tomorrow … will always be doing a fantastic and lucrative deal too!

Andreia Brazil is a Mortgage Broker Specialist, licensed to work throughout Canada – Facebook: Andreia Brazil Mortgage Broker