Challenge and Opportunities in 2016
Shall I Sell?
1) if no need to sell, don't sell unless you live in old apartment which expects special levy due to the depreciation report to maintain the building. Having said that, if older apartment in the westside or downtown might be a different case. I usually will advise my client case by case. If decide not to sell, get a good experienced lender to analysis if you should lock for a 5 years or less...fixed or variable closed. Ask them what's the % of your payment goes to interest and what goes to principle.
Shall I Buy?
The answer is always "Yes" regardless what the market condition is like. Why?
Spoke to my friends relocated to Vancouver from Alberta. They said downtown Calgary is really dead. Edmonton might be slightly better because there's farming industry as well. Many of them who has lost their job are now coming to BC. It gives upward pressure to our housing market.
Interest rate: once again I spoke to clients in the oil industry, looks like the situation might not be improving for the next 3-5 years unless there's political changes in the world.
First time buyer: 5% for the first $500,000 and 10% between $500,000 & 1 million. An increase in home equity protects home owners. It protects middle class Canadians. If you worry about interest rate will go up or not, I think it is pretty safe to say it wouldn't happen for a little while.
Investors: depending on what you want from your investment. For cash flow, you need to go to the suburb area. For capital gain, of course stay in the urban area.