If there were ever a time to act and begin investing in real estate it would be now.
Mortgage rates in BC are now at an all time low at 1.8%. Making it easier to carry a property.
To better explain, the mortgage rate in 2018 was approximately 3%. If you put 20% down payment on an investment condo worth half a million, then you would have had to pay about $1680 a month for the mortgage.
A tenant’s average rent for a property like this would be approximately $1500, meaning that you would still need to pay $180 dollars out of your pocket to cover the mortgage amount.
However, if you were to buy a property of the same price in today’s market, with 20% down payment, the monthly mortgage would only be $1450.
Meaning, if you still charge $1500 from your tenant, you will actually be pocketing $50 more.
Just like that you’ve turned a negative cash flow into a positive one. From paying $150 extra, to earning $50 more every month.
The condo market has not gone up drastically from 2018 to 2020.
For the moment the price is low, and the mortgage rate is low, but if the current rate of activity continues then it’s very likely that prices will increase.
So don’t let this opportunity slip by. If you were ever looking for “the right time”, then let us tell you that it’s now.
If you’re someone who wants to get into real estate investing, contact us here for all you real estate questions.