Buzz Regarding Vancouver’s Tax Could Open Doors

An investor is of the opinion that the overreaction to the impact of the tax on prices will surely send the media into frenzy and also possibly creating opportunities for savvy investors.

Peter Kinch, an investor who centers on British Columbia, told Canadian Real Estate Wealth, “With the 15% tax being imposed on offshore buyers, you’re quire likely going to see a lull and we’re seeing it already. The impact of that won’t be seen until September and October.”

“Watch for overreaction in the media and the media is going to blow it out of proportion which could create a self-fulfilling prophecy whereby boomers and seniors will list their homes in the hopes of getting out while they can before a crash comes.”

In actuality, the Vancouver market is already experiencing a slight moderation in prices.

Kinch believes that with present state expected to last way into the winter, enough time will be available for investors to create a deal between November and February, before prices correct themselves.

“That will have an effect of dumping product on the market, downward pressure on prices and the end result of that will play itself out October/November when the year-over-year statistics really start to show,” he said. “So I’m looking for a very depressed sort of market over the winter months but when the dust settles and everything plays itself out, the spring will go right back to economic fundamentals of supply and demand and that will play itself out in a vibrant, healthy, spring market.

“I think we’ll see all the prices bounce back in spring.”

Investing in Vancouver has become way too overpriced, causing a lack of cashflow. Buying in such a market will mean buying on a speculative basis, cross your fingers and hoping to get equity appreciation.  November to Februaruy is seen as the best time to invest or speculate, if buying in Vancouver.