Quote:
Originally Posted by westopher
Thanks for the advice, we (me and my wife) actually already discussed jumping on something here isn't a reasonable idea. I already own real estate elsewhere in Canada, and have renters, and until it makes sense to sell there and buy here I'm not likely to buy here. My renters are out in october, so I have a while to see what the market does. The area I own in has a retardedly low vacancy rate, and is quite stable, at least for the time being, so the looking is more of a curiosity at the moment.
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Based on having no knowledge of ur situation, here's what I'd do -
Don't ever sell ur rental (unless the maintenance on it gets stupid expensive, but assuming a reasonably well keep place), overtime, rents will go up, so as long as ur cash positive/net income before depreciation, keep it rolling along, especially as its In a low vacancy area.
When u sell u will incur stupid high realtor fees and other selling costs, and will pay tax on any gains. If its mortgaged, you will have to pay to break the mortgage (something I don't agree with, not the way in the US, under most mortgages)
So, if u have equity in the place, I'd just use the equity in that place to buy here when the time is right - assuming Vancouver price falls will outpace ur rental price decrease, u will be Better off doing this.
Now, I don't want u thinking I advise the "buy a place, then buy another, and another using more and more debt" - not at all, but u have a cash flowing/ income generating asset that is illiquid, so assuming the economics of it works, you should just hold onto this asset for life. U can realize the value of this asset later in life by taking mortgages out on it - cheapest money around, mortgages.
I don't ever plan to sell the properties I own, I bought low, they all cash flow very well, and I don't have to do anything ever now to make that same money every month for the rest of my life - when I retire, if I want to enjoy the capital,I'll just mortgage them to realize 80% of that value and blow that money before I die - the rent will still make it cash positive. This only works when you don't "buy high", to me real estate is all about cash flows, buy low, sell never, unless there is a huge run up in price, I.e. US during 2000's or Canada of late - but these are hard to time, and real estate is illiquid, slow to move, and it's hard to find good real estate investments.
Just my opinions, but if it helps u out, good stuff