Ian Watt Vancouver Condo Real Estate Video Blog #766 - March 27, 2017
Ian Watt video blogs about who is buying in Downtown Vancouver in this hot 2017 market and from what we can find out its mostly people with cash and highly leveraged people. As you can image people with cash are sitting pretty safe but highly leveraged people are at quite at risk to a market change as well as an increase in interest rates.
Ian Watt: Hi good afternoon it’s Ian Watt in Downtown Vancouver. I speaked with the notary public the other day lady I known for a long long time ago and she explained to me that there two different types of buyers these days because the notary can see people finances. She said people are buying pretty much with cash or the highly leverage there’s very few people in between because the people in between qualify if they have $800,000 dollars cash they qualify for a huge number so they’re getting huge mortgages it’s an unfortunate situation and there’s also a kids that getting a fifty or hundred thousand dollars from their parents and getting a $500,000 dollar mortgage. This people have no goals of paying off their mortgages anytime soon their goal is to get into the market let the market go up and then they’ll cash out that’s what we're seeing a lot of and it’s unfortunate because who knows if the markets gonna dip 10% or if mortgage rates will go up to 2%. If they’re highly leverage it’s very risky and we're seeing way too much of that in Downtown Vancouver right now, again half of people buying of cash half of people are totally leverage and there’s very few people in between that are making wise decisions to get out of debt. If you have the opportunity to get out of debt do it because so much payments, so much of your payment goes towards interest and it’s going to take three years for you to pay off that one bedroom if it doesn’t go up and value at the rate that is being going up in Downtown Vancouver for the past three years. My name is Ian Watt and if you have any questions you can always email me at ianwatt@ianwatt.ca. Thank you very much and have a great day!