|
|
|
It's "back to the basics" in choosing condominium real estate at a time of economic and international political uncertainty. Granite countertops are nice, and buy 'em if you want 'em, but they're likely of less investment value during uncertain times than they were during the economic boom, with oil at $30 per barrel and the world-largely-at peace.
Regardless of war or acts of terrorism, people need a place to live. The economy may change, but it will continue. Families will move, sell homes, and buy homes. Apply practical thinking to your own needs and to those of future buyers of your home, and you'll be investing well while putting a roof over your own head. And DO buy. Our enemies would like nothing more than the western world's economy to collapse from consumers' simple hesitation to spend and invest.
Affordable, convenient, well located. Those are some of the words that come to my mind to summarize the features you will want to see in a condo home at this time. While the world may be marching to the beat of drums, these factors will keep you as safe, warm and financially secure as possible, and maintain or increase your home's value through troubled times. So let's name specifics.
Affordable: If you're buying new, go easy on the upgrades. Tile is nice, but lino could do. Granite makes yuppies swoon, but arborite countertops might be adequate. Grohe-brand faucets are just the thing, yet water flows as well from Delta-brand taps. Keep your total purchase price in a range you can afford, and that a subsequent buyer will at that time also be able to afford. Keep in mind that 90% of today's condo resale market is below $180,000.
Convenient: Lofts, three-storey designs and space-age finishing are cool, no doubt about it, and some buyers will always want them. Yet focus on convenience, whatever the housing type and location, to arrive at the best buy and investment during troubled times.
Well located: If you plan to buy close-in, make it walking distance to downtown or transit. If you're buying farther out, keep transit in mind, and try to locate next to schools, water and/or parks. Families will always need ground-level townhouse homes, and will want them close to the amenities children need. The most remote locations may be peaceful, but if the economy slows, they could be less in demand.
Here are two more tips. The traditional buying season is winding down for winter, so you should be gearing up. Condo home listings come onto the market very consistently year-'round, but buyers seem to hibernate. Buy when there are fewer home shoppers, and you'll find a better selection and may find some sellers, both resale and new, willing to reduce their price. It's like the stock market: buy low, sell high.
Take a floating interest rate for now, then lock in if you hear they're about to rise. Historically, a floating rate has virtually always benefited the borrower. Yet we need security, so most buyers (me, too!) lock in for, say, five years. Today you can have your cake and eat it, too. Float for now to take advantage of unusually low rates, but lock in the rate some months or a year down the road if the situation changes.
Most of us will adopt a prudent and modest home-buying approach during times of upheaval. It ensures we can afford where we live, and that our home will appeal to a broad segment of the market when/if we need to sell, regardless of world affairs. Yet, some will have another very human reaction to current world affairs, namely fatalism. In that case, go ahead and demand granite counter tops, gold-plated Grohe-brand faucets and the biggest damn hot tub your money can buy. Oh?and don't forget a very shiny red Porsche for the garage!
|
