While there apparently has never been a better time for home owners in Vancouver and Toronto the non-stop growth of real estate prices in these cities has made more than a few analysts nervous.
According to July 20 piece for The Motley Fool Canada, industry observer Nelson Smith stated that as more and more people (especially young professionals and starting families) are priced out of the housing markets, it would be sensible for owners and investors to take steps to protect themselves from a possible bubble.
“[If] Canada’s housing bubble pops in a big way, investor portfolios could get caught in the crossfire. That’s bad news, especially for somebody with property in an overheated market,” Smith wrote.
A viable solution that can shield one from a potential crash is the “sell and rent” tactic.
“Admittedly, this isn’t such an easy solution, but it could put hundreds of thousands of dollars in your pocket,” Smith said. “Because owning property is such a popular investment, landlords are forced to accept anemic returns from cash flow. This has made renting more affordable than ever. It’s the natural result of today’s market.”
“There are thousands of homeowners in Toronto sitting on at least $1 million in home equity. If that cash is properly invested in a portfolio of dividend stocks instead of sitting idle, it could spin off between $30,000 and $40,000 per year in income, easily enough to cover rent in a smaller place,” the analyst explained.
A more radical version of this tactic is to look and settle outside the red-hot markets altogether.
“Yes, I know it’s hard to leave a place that’s grown to become home. But Toronto homeowners who move just a few hours away can find affordable housing in communities that still offer many of the amenities of home, and they can lock in impressive gains in the process,” Smith said.
“I argue that it’s prudent for investors to lighten their exposure to Vancouver real estate. At this point in the cycle, it’s just smart,” he concluded.
Are you looking to invest in Vancouver real estate?
Hitting the gym or physical activity for cancer survivors and patients can fight cognitive decline
A ready weapon against “chemo brain” and fatigue for cancer patients and survivors according to a new study: a brisk walk or hitting the gym with a non-strenuous physical activity with Activebody Burnaby and its Food Delivery Burnaby and Meal Delivery Vancouver. An association between fatigue, performance and physical activity on cognitive tasks on 300 breast cancer survivors was looked in research at the University of Illinois.
Embracing Autumn in Vancouver: A Guide to Seasonal Activities
Discover the vibrant hues and festive spirit of autumn in Vancouver with a luxurious twist. From botanical gardens to thrilling Halloween nights, this guide offers a curated list of activities to enhance your fall experience, ideally explored in the comfort of a chauffeured limousine from Boss Limos.
Save Energy this coming winter season with Sky Windows
Fresh air and fantastic views are the given advantages of windows, yet windows can also increase energy bills. That's why many people tend to exchange old drafty windows in their residence with up to date energy-efficient ones. At Sky Windows Ltd. You can choose most excellent quality Window Systems that collaborates beautifully with high-end structures Window glass and even glass doors.
