Invest in Housing and double your money in two years
By all indications, reality market has opened up in a big way and is likely to be much hotter in 2010 though it may take a while to regain previous price levels.
When this correspondent joined the customer for a house in Calgary, for a three-bedroom duplex, there were already six people waiting in line. My friend was willing to spend up to $500,000 and was searching for house for two months. The particular house we were looking was available for much less price, about $390000 six months ago than the price of $475000 being quoted today.
This amount is by no way a measly sum. In fact, the Canadian real estate market was never in as much trouble as in USA and there were hardly any defaults on payments. The banking system in Canada is quite conservative and one needs a much bigger down payment, higher income to buy a house here. However keeping in sync with the world trends at peak of recession, the mortgage rates dropped to historic lows.
This coupled with the inherent strength in the Canadian economy have made the present situation as the best conditions in over 30 years to buy a home. Today a house in Canada in a good location fetches even better than the asking price. The reality market is in reality a seller's market and sometimes sellers are getting greedy in this market.
In fact as the Canadian economy is showing goods signs of recovery, the benchmark interest rates are likely to shoot up. Despite job losses, buoyant resale markets will result in increasing strength in the new home market.
Decreased listings will also create some scarcity in the resale market. Average prices will also rise by about seven per cent this year and another twelve per cent next year.
This couple with present about twenty percent growth in realty sector compared with rates prevailing in last 6 months is about to let the property grow by about 150% in next 12 months.