“Always the Right Time to Buy!” – Cheap Rope For Vancouver RE Buyers

As a mortgage agent, Lorina Serafico, a home-financing adviser with Scotiabank, often gets asked when is a good time to buy a home.
“If a household has the income, down payment, and the credit score to qualify for a mortgage, it is always the right time,” she said.
According to Serafico everyone needs a home, whether owned or rented.
“I consider mortgage payments as a forced savings plan,” Serafico said. “A $500,000 property you bought today will be worth $873,000 in 10 years. That’s an average of 7.45 percent annual increase, beating a medium-risk investment portfolio.” …
With more than a decade as a mortgage agent, Serafico has served numerous customers, and a number of them have started meeting with her again.
They’re usually owners of townhouses and condos, and now they’re thinking of upgrading to single-family homes.
“They like what is happening in the market. There’s more inventory; prices have stabilized; and interest rates are good,” Serafico told the Georgia Straight in a phone interview.
On March 27 this year, the Bank of Canada slashed its key interest rate—which determines bank lending rates—to its lowest level of 0.25 percent.
– excerpt from ‘Mortgage holders can seize on opportunities to upgrade’, Carlito Pablo, Georgia Straight Vancouver’s News & Entertainment Weekly, 17 June 2020

“It’s hard to make predictions, especially about the future.” – attributed to Yogi Berra.
One would think that people, especially finance professionals, had learned not to say things like “…it will be worth…”, “…7.45%…”, and “…always…”.
– vreaa

11 responses to ““Always the Right Time to Buy!” – Cheap Rope For Vancouver RE Buyers

  1. In case it gets moderated, post the link yourself… =b

    https:// twitter.com/ewsiddall/status/1273652213324435460


    Evan Siddall

    House prices lag economic events. Current price resilience proves nothing: don’t take comfort from low volume price action. Multiple offers are consistent with a huge decline in new listings. Government support programs have deferred (& reduced) an inevitable economic adjustment.

    From the head of the CHMC… of course he’s also leaving at the end of this term (year?), so maybe he doesn’t have anything more to protect.

  2. The bubble has generated housing-related employment for otherwise unqualified individuals.

  3. Raging Ranter

    “A $500,000 property you bought today will be worth $873,000 in 10 years. That’s an average of 7.45 percent annual increase, beating a medium-risk investment portfolio.” …

    To her credit, she is rounding. She said $873,000, meaning she is conservative enough that she refuses to offer up a prediction of the home’s value to the exact dollar, nor even to the nearest $100. I can appreciate that rare combination of caution and clairvoyance.

  4. You can never guarantee returns in excess of guaranteed rates. 5-year GIC’s are currently offering around 2%. If used house sellers and “mortgage professionals” were held to the same reporting standards as the greater financial industry, many would be in jail. Bernie Madoff’s consistent returns of 10% per year, we all know what happened there.

  5. LOL they would also be in jail for not disclosing their holdings and conflicts.

    “Buy this stock; it’s guaranteed to go up ™!!!” said the lady who had personally invested millions into the same stock, but didn’t happen to mention it. And whose job and career were tied to the success of that stock. And whose friends, family, work associates, and banker were holders of the stock.

    Never mind the fact that the employees of the media outlet *reporting* the blatant pumping as “news” are all long the same stock, (for millions of dollars,) and their financial futures were entirely dependent on strangers continuing to overspend on that stock.

    No, nothing fishy there.

    In no way does this remind me of the ladies who try to sell my wife ugly leggings on Facebook.

    Soap with a prize inside!

  6. Are there any stats related to mortgage deferrals? % of mortgage deferred? % can’t pay vs won’t pay?

  7. This is a big slow motion wreck. We really won’t know until the middle of 2021 how serious things are going to get or even how many people will outright default. By then the CERB payments and the ability to defer will be 6 months in the rear view mirror and reality will be setting in. But even then you can buy yourself another 6 months time before the bank pushes you out and takes your place. Maybe longer if there is a fight. That gets us to 2022. And the whole time we will be hearing realtor’s saying its a good time to buy. LOL. Because its always a good time to be a buyer. Even when the housing correction comes so glacially slow its the equivalent of a frog getting boiled and never hopping out of the pot. And that’s why so few sell at the top. Because almost nobody is able to see into the future or read the obvious signs along the way. I was listening to David Rosenberg the other day and he was quite blunt. This is a depression he said. By every metric. There is just no way to sugar coat the truth. And yet Toronto housing prices actually went up after the lock downs got lifted.

    Hormones! Sheesh.

  8. Needs complete cosmetics. Vancouver special, east of Main. Thirty offers, including one mentioned on Facebook at 2 million which was not accepted. Not the right time to buy, yet.

    https://www.realtor.ca/real-estate/22164418/365-e-29th-avenue-vancouver

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