FEAR IS THE REASON YOU’RE NOT WINNING RIGHT NOW.
A few points to start us off before we get into things here. This topic should be reviewed by all of you out there, regardless of whether you’re currently buying or selling in this market, or you are just keeping an eye on things. Second, this is focused on the buying side of the market, you can see our popular equivalent blog on selling right here.
Finally, this is also focused as a long term investment vehicle. So we’re not talking about buying a property and flipping it in the next 6 months. We’re challenging you to look at the long term here.
So let’s start things off with a sexy statistic! Ohhhhhhhh Yeah:
In 2008, False Creek Vancouver had an average SOLD price of $650,400 for a 2 Bedroom, 2 Bathroom home.
In 2019, False Creek Vancouver has an average SOLD price of $1,139,758 for a 2 Bedroom, 2 Bathroom home.
Assuming you bought in 2008 and sold in 2019, you would have quite literally made yourself a millionaire with ONE investment….
A few points to start us off before we get into things here. This topic should be reviewed by all of you out there, regardless of whether you’re currently buying or selling in this market, or you are just keeping an eye on things. Second, this is focused on the buying side of the market, you can see our popular equivalent blog on selling right here.
Finally, this is also focused as a long term investment vehicle. So we’re not talking about buying a property and flipping it in the next 6 months. We’re challenging you to look at the long term here.
So let’s start things off with a sexy statistic! Ohhhhhhhh Yeah:
In 2008, False Creek Vancouver had an average SOLD price of $650,400 for a 2 Bedroom, 2 Bathroom home.
In 2019, False Creek Vancouver has an average SOLD price of $1,139,758 for a 2 Bedroom, 2 Bathroom home.
Assuming you bought in 2008 and sold in 2019, you would have quite literally made yourself a millionaire with ONE investment….
For those of you screaming “we’re only in May this year!, that number isn’t accurate!!!” The above stat in 2018 was $1,251,142. Or maybe you still don’t believe us and need more? Well in the year 2000, the above stat was $308,465. So even if you had bought in 2000 and sold in 2008, you would have more than doubled your investment!
So if we do the math - Assuming you had taken advantage of the 2008 downturn, you will see on average, your home value will have increased by $489,358 (Just over 75.8%). Show me another investment that yields that return! Add in the fact we are currently in a downturn market if you’re a seller, so right now would be your lowest return. A hot market would see that figure increase even more.
“Be fearful when others are greedy and greedy when others are fearful.”
Warren Buffett
He’s kind of a big deal, he’s worth a measly $89.9 Billion, yes that’s billion with a ‘B’. Now a vast amount of his wealth is generated via the stock market. So when the 2008 recession hit and the stock markets crashed to record lows, what did he do? He invested BILLIONS into the stock market….. He did this because he knew it would turn around, and NOW was his chance to buy with everything on SALE.
So when the market did turn, as they always do, the same with real estate, he made countless more billions from his investment.
Unfortunately it takes guts to invest in a ‘weak market’. It’s easy to get caught up in the hype, media coverage and your friend who has never invested but is somehow an expert. It strikes fear into you when you think of investing your money in a bad market. But the truth is markets will turn, and you will either win because of your choice to take advantage of it, or lose because of your fear of doing so.
You can play the game of ‘the market is going to come down more and more’ and that’s totally fine. Watch the market and make a decision when it’s right for you. However our professional opinion is the worst of the worst has happened and if something fits your budget, it’s safe to proceed forward (of course taking all other necessary precautions such as inspections and subjects etc.)
We have a buyer we are working with right now. She’s young, in her mid twenties and is looking to buy a condo in Vancouver that allows AirBnB. She’s been extremely smart here by purchasing this type of condo. She’s 100% lawful with the new regulations, has gotten into the market at a reduced price, and is literally travelling the world for a month at a time and funding it, and more, through her AirBnB. All while knowing her investment is growing over time. She’ll sell in 5-10 years and capitalize on her investment and she knows it.
Ask many investors out there and they will tell you one of two things or both for a reason:
Thanks for reading everyone!
Until next week,
So if we do the math - Assuming you had taken advantage of the 2008 downturn, you will see on average, your home value will have increased by $489,358 (Just over 75.8%). Show me another investment that yields that return! Add in the fact we are currently in a downturn market if you’re a seller, so right now would be your lowest return. A hot market would see that figure increase even more.
Warren Buffett
He’s kind of a big deal, he’s worth a measly $89.9 Billion, yes that’s billion with a ‘B’. Now a vast amount of his wealth is generated via the stock market. So when the 2008 recession hit and the stock markets crashed to record lows, what did he do? He invested BILLIONS into the stock market….. He did this because he knew it would turn around, and NOW was his chance to buy with everything on SALE.
So when the market did turn, as they always do, the same with real estate, he made countless more billions from his investment.
Unfortunately it takes guts to invest in a ‘weak market’. It’s easy to get caught up in the hype, media coverage and your friend who has never invested but is somehow an expert. It strikes fear into you when you think of investing your money in a bad market. But the truth is markets will turn, and you will either win because of your choice to take advantage of it, or lose because of your fear of doing so.
You can play the game of ‘the market is going to come down more and more’ and that’s totally fine. Watch the market and make a decision when it’s right for you. However our professional opinion is the worst of the worst has happened and if something fits your budget, it’s safe to proceed forward (of course taking all other necessary precautions such as inspections and subjects etc.)
We have a buyer we are working with right now. She’s young, in her mid twenties and is looking to buy a condo in Vancouver that allows AirBnB. She’s been extremely smart here by purchasing this type of condo. She’s 100% lawful with the new regulations, has gotten into the market at a reduced price, and is literally travelling the world for a month at a time and funding it, and more, through her AirBnB. All while knowing her investment is growing over time. She’ll sell in 5-10 years and capitalize on her investment and she knows it.
Ask many investors out there and they will tell you one of two things or both for a reason:
- Real Estate is one of the safest investments out there (long term)
- Most millionaires are involved in real estate investment for a reason.
Thanks for reading everyone!
Until next week,
Jay Mcinnes
T: 604.771.4606
jay@mcinnesmarketing.com
Ben Robinson
T: 604.353.8523
ben@mcinnesmarketing.com