In the Fraser Valley?s rapidly expanding real estate market there are several elements to consider. You are probably aware of the concept of inflation. But just to recap, inflation means that the increasing cost of buying a service or a product (tangible or intangible). This decreases your purchasing power. For example, an item that cost perhaps 10 dollars ten years ago, now cost 50. People in today?s world that are on fixed incomes are very aware of their purchasing power of the Fraser Valley rental dollar.
This factor is very important to consider when renting your new home, apartment or townhouse in the lower mainland. The inflation rate in Canada varies at different times of the year and in different regions across the country. At one time Canada had what?s known as ?double digit inflation. However, currently in the Abbotsford, Burnaby, Coquitlam, Surrey, Langley, New West and Richmond area, inflation has stayed relatively low.
Naturally, the appreciation of property value over time includes inflation factors. And historically, land appreciation value for residential homes has been between 4 and 5 percent greater then inflation rate. When you buy a home in the Fraser valley your buying a home with inflated dollars. That is, you are probably getting more money now in terms of salary increases to pay off lesser-value money when you took out that original mortgage. So your beating the system!
Renting in the Fraser Valley can often be a disadvantage given our appreciating real estate in Abbotsford and Vancouver. In fact Every city across the Fraser Valley has been hit by the real estate boom and has experienced some level of Appreciation. This includes Richmond real estate, Burnaby, Coquitlam, New West, White Rock, Mission, Maple Ridge, and all other major cities across the lower mainland. Appreciating simply means the increase in value of the property over time. It is the growth in value of your original capital investment.
The national average of appreciation with real estate in the Fraser Valley is 5%. However, real estate in the lower mainland has seen gains as much as 25%. It?s important to understand that trends will go up and down. But with the 2010 Olympics coming up, interested rates staying under 10% and our economy the way it is, you?ll notice the real estate market will continue to clime. The ?rent BC? option has rapidly changed into a wealth building endeavor for any middle class investor.
Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market
3 comments:
Hi,
The real estate investments are not cheap therefore you should be aware of what you are getting yourself into. Never rush into making any decisions about investing because this may be very costly at the end.
Still sceptical? Avail several free courses because you have nothing to lose and everything to gain. Give yourself the edge by treating yourself to real estate investing courses, apply them and see concrete results!
Hi,
You have a cool blog here. Thanks a lot for sharing this useful information on real estate.
Try to consult experts and ask for the methods that are suitable for you. Anyway, in every business we have to assure the legality of the property simply because money is getting hard these days. In addition to that you have to take your time in thinking whether to buy or not to buy properties. You know real estate business is not just about investing money and getting the profit from it.
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