Choosing a good time to invest in real estate will have a major effect on the long-term profitability of your investment. But when is the best time to invest in real estate in Nanaimo?
Whether you are looking for a primary home or an investment property, it is important to study the real estate market before buying instead of focusing only on the house itself, as both pieces can affect the deal. But what factors should you consider about a real estate market in Nanaimo? Here are some top things you should know before buying a home as a real estate investor.
1. Location and timing are very important
Location is the most important factor in real estate for a reason: You cannot change it. Therefore, a home's location impacts value in a big way. Also, keep in mind houses depreciate over time, but the land does not. It is always wise to consider location before buying a home.
If you are looking to get a great value with a good possibility of appreciation, the best time to buy is when the neighborhood is still up-and-coming. It will probably be expensive to get into a neighborhood after it is already established as a desirable place to live. If there is no indication the neighborhood will ever be desirable, it will likely be a cheap buy, but a risky one, as the value could decline. Try to buy when a neighborhood is coming up but not quite there yet.
By studying neighborhood trends, not just a current snapshot, you will get a good idea of whether the neighborhood is in a good location and on the upswing. Look at amenities, crime statistics, employment figures, population, and school ratings. If everything is improving, the area is worth further research.
2. Price can make or break a deal
Price is always an important factor when you buy a home. It is always best to buy when it is a buyer’s market, meaning the market is favorable for the buyers. At the time when the supply is more and the demand is less, it is considered a buyer’s market.
3. Housing supply statistics
As noted above, the housing supply currently down. But when home sales are rising because demand outpaces supply, supply tends to increase unless there are building restrictions.
4. Where to buy in 2021
Investors who buy single-family homes to rent do so in areas with the biggest market for their product. After the coronavirus pandemic, the market has shifted away from city centers and has instead gone to the suburbs and rural areas. As more people realize they can work from home, they are opting for more space, and to afford that, they are moving to where the space is easily affordable.
5. Look at the employment trend in the area you are looking to invest in
As noted, it is wise to look at employment trends in the area you are considering investing in. More jobs coming to the area is a good sign; increasing unemployment numbers is not. The uncertainty of the job market is another risk factor to consider before buying a home.
You might be ready to jump into the real estate market today, but timing is important. Real estate can be a great way to gain wealth and often seems like a sure thing but take some time to properly study the market to know what to buy and when to give yourself a better chance for success. Reach out to a good Nanaimo realtor to guide you as they are experts and know the market trends of a place really well. They can consider all the market indicators as well as your needs to suggest you the best location and house possible.