BMO Cuts Interest Rates – “great time to buy”

By
Real Estate Agent with REMAX CREST REALTY WESTSIDE

A great article I found  at the Vancouver Condo Info site argues that it's a great time to buy real estate right now.  The fact is, however, that it's been a great two years to buy in Vancouver in particular and, in the rest of the country, with prices still on the rice despite the attractive interest rate, numbers add up to favor the buyer, not the big brother.

"In the lowest 5-year rate in history, I think moments like this should be documented AND should be indicators of what our economy at large is going through." (Vancouver Condo)

I argue that not only is it a great time to buy now but it has been over the last two years.  Furthermore, contrary to the following quotation of the Canadian Centre for Policy Alternatives, I maintain that it's not possible to have an "imminent" collapse when the demand for Vancouver (and Canada's) real estate is fueled by neighboring countries (China, Japan, the UK, and the US) whose real estate is either out of reach or, as is the case in the US, so devalued that investors are seeking a safer heaven for the money they've left over.

"But some experts are already scratching their heads because of the aggressive tone of the announcement as well as the timing, given the recent spate of warnings about the uncertain state of the market, including one earlier this week from the Canadian Centre for Policy alternatives predicting an imminent collapse."

And why would they care about a drop off in new customers? Ah, here it is later in the article.  Could it be that banks really want to veer away from the media interpreting their interest rate changes and want to stimulate people more directly towards their products?

"The housing market is important to the banks because residential mortgages make up the single biggest asset class on their balance sheets.  There are nearly $1-trillion of home loans outstanding, according to the Bank of Canada, about half of which is held by the chartered banks." (Vancouver Condo, emphasese added)

Given the vast amount of stakes the Banks have with your and my outstanding mortgages, aside from the level of our respective equity, the numbers are astounding and I can imagine the pressure they are feeling.  I am not speaking sympathetically of the banks, but am drawing attention to how much money they must be making even in this seemingly disadvantageous time.

REFERENCES:
The Vancouver Condo Info site.

 

Posted by


Let's do coffee or lunch!
TeamYVR Real Estate Agents

JARK KRYSINSKI, REALTOR
®, BA.Hon, ABR, IRES, 100% CLUB, IMSD®, LLB
TeamYVR Real Estate Agent, Team Lead, Top Producer, Workaholic 
RE/MAX Crest Realty Westside, 1428 W. 7th Ave, Vancouver, B.C., V6H 1C1
DIRECT: 604.790.9945 | TOLL FREE: 1.855.TEAM.YVR (1.855.832.6987)
Office: 604.602.1111 ext. 116 | Fax: 604.602.9191 ("ATTN Jark, TeamYVR") 
1. www.TEAMYVR.com "JARK KRYSINSKI @ OUR TEAM, 'TEAMYVR' ONLINE!" 
2. BCCondos.net/city-east-vancouver "All Condos in East Van by TeamYVR!"
3. BCCondos.net/city-ladner "All Condos in Ladner by TeamYVR"
4. BCCondos.net/city-tsawwassen "All Condos in Tsawassen by TeamYVR!"
5. www.MEETUP.COM/BridgeMakers "Meet Jark in Vancouver, Group Leader" 
6. www.MEETUP.com/BridgeMakersDowntown "Meet Jark in Downtown, Group Founder"
7. www.MEETUP.com/BridgeMakersRichmond "Meet Jark in Richmond, Group Founder"
8. www.MEETUP.com/BusinessBuilders "Jark Teaching Investing, Group Speaker" 
9. www.BRIDGEMAKERSGROUP.com "Vancouver Business Group" 
10. www.BIGRICHGROUP.com "Meet Jark in his Richmond Group, Group Co-Host" 
11. www.MEETUP.com/3Metro "Jark's Business Group in Burnaby"
12. www.MEETUP.com/MiddlePeople "Jark Teaching Sophisticated Investments"
13. www.TWITTER.com/SOLDbyJARK "Find us on Twitter"
14. www.FACEBOOK.com/JarkTheSaint "Find us on Facebook"
15. http://d553bf1.ACTIVERAIN.com/ "Top 3 Realtor in Vancouver, BC, Canada!"
      "I Work Hard & Stop Being Tired & Feel Awesome Instead!"
 
CONFIDENTIALITY NOTICE: ALL information contained in this message & ALL attached documents is privileged and confidential and is intended ONLY for the use of the individual(s) or entity/entities named above and in the person addressed in the body of my email. Any other use, dissemination, distribution, disclosure or copy of this transmission is strictly UNauthorized. If you are not the intended recipient or if you have otherwise received this message in error, please (1) immediately notify JARK@TEAMYVR.COM by return e-mail so that we may arrange to re-send the message to the intended recipient and (2) delete any copy of this message or attached documents. Please also note that e-mail transmissions cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses; The sender therefore does not accept ANY liability for any errors or omissions in the contents of this message which arise as a result of e-mail transmission.
 
close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Mortgage / Finance
Location:
British Columbia
Groups:
Beautiful British Columbia
Internet Empowered Consumer
Mortgages
Real Estate Agent-Investors
RE/MAX Active Rain Bloggers

Comments 6 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the key to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
239,935
Michele Miller ~ REALTOR®, LMC, HSE, CHS
"Your Full Service Professionals"
Keller Williams Greater Worcester

Jark,

It's like that here too and I wish more buyers would get out there and buy!

September 03, 2010 05:23 AM
Rainer
170,695
Jark Krysinski
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB
REMAX CREST REALTY WESTSIDE

Carolyn, thanks for your message!  Appreciate it.  It is indeed a great mortgage rate and we're lucky to be the first few people online talking about it.  Over the next week everyone will be reading all these articles about this change and we'll be in the limelight for having put it to our clients and community and colleagues.  As Buffini says "top of the morning to ya and the rest of the day to me!"  Have a great day.

PS. In this business of so many delicate and trust-depending relationships it's pivotal to keep people within the 'family'.  I look forward to staying in touch and exchanging referrals to exceed our clients expectations.  Would you be interested in becoming part of my referral database and vice versa?

Dependably, 

Jark

September 03, 2010 06:32 AM
Rainer
170,695
Jark Krysinski
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB
REMAX CREST REALTY WESTSIDE

Michelle, thanks for your comment!  I value where we're coming from.  I think we'll witness some unique shopping this fall.  There's a tremendous amount of dis-information out there and a lot of great information for buyers to interpret and sift through.  There are, because of this, some great rewards to be had and I think people will follow the fundamentals and realize that Real Estate is indeed a panacea in the long run, despite what the media puts out.

PS. In this business of so many delicate and trust-depending relationships it's pivotal to keep people within the 'family'.  I look forward to staying in touch and exchanging referrals to exceed our clients expectations.  Would you be interested in becoming part of my referral database and vice versa?

Dependably, 

Jark.

September 03, 2010 06:35 AM
Rainmaker
995,711
Karen Anne Stone
Fort Worth Real Estate
New Home Hunters of Fort Worth and Tarrant County

Jark:  One of my favorite Buffini "lines" is in his Turning Point Retreats where he jokes about the "I Love Referrals" sticker some folks use.  He says... "I love potatoes... but nobody has ever walked up to me and given me one."

Not only is that a great line, but it is SO true... that referrals don't just "happen"... you've got to work for them.

September 04, 2010 10:57 AM
Rainer
170,695
Jark Krysinski
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB
REMAX CREST REALTY WESTSIDE

Karen, thanks for your post.  I like Buffini and he's got plenty of great methods to learn, I actually did his 100 days to greatness which was one of the best things I've ever done at the start of my Real Estate Career.  Nothing comes of nothing, I agree - referrals comes after systematic over-achieving, good work, repeat giving, and a little bit of asking for it.  Let's keep on keeping on!

PS. In this business of so many delicate and trust-depending relationships it's pivotal to keep people within the 'family'.  I look forward to staying in touch and exchanging referrals to exceed our clients expectations.  Would you be interested in becoming part of my referral database and vice versa?

Jark

September 04, 2010 07:36 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the key to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
170,695

Jark Krysinski

TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Hello, my name is Jark! I have been a real estate investor for the past 15 years, predominately in the Greater Vancouver area but also in the developing real-estate locales of Whistler as well as Revelstoke. I share my research and writing on a daily basis as an added service to my clients. It's important to realize that REALTORS are not only sales people but are also scholars of Real Estate in their own right. The hundreds of articles I've published serve to exemplify this point. In Vancouver specifically, I’ve bought and sold more than four businesses of my own – prior to licensing as a real estate licensee – and have bought three passive real-estate holdings. If you’re looking for an agent who’s not only thought about real estate but has also bought and sold his own properties, and taken his own calculated risks, give me a holler and we’ll discuss the market and your participation therein. For more than theory, speak to someone who’s empirically on the same page as an experienced real estate investor.