Re/Max Realty Specialists Inc.,
Brokerage Independently Owned & Operated
*Sales Representative

Blog by Krisztina Neglia

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New developments effect on the Oakville Real Estate market

There have been many new building and development sites coming into the market  in North Oakville, as of late offering houses at what are supposedly good prices?? The problem is the prices the builders are currently charging are more expensive than current resale properties. The prices the builders are using are house values that are forecasted for 2014/2015. The problem is we aren't currently in a market where this speculation holds water. It's not the best time to buy a property above market value. Expecting to make $100,000 on a property on paper in the next two years is not currently realistic. We would love to tell people that they'll make $100,000 in two years, but we're in a more stable market right now where extreme growth is not expected to happen as it has in the last few years.

Why would you pay $50,000 more for a house that isn't even built yet when you can buy a house that's ready now for less?
Why give a builder your money to hang onto with no interest for several years when you can buy a resale home and take possession right away?

Be very careful when buying a home on speculation. If you decide to go ahead and buy a builder project right now, be certain that you can afford to carry the future home and your current home at the same time or be prepared to rent one out, potentially at a loss.

Our advice if you're looking for an investment is that it's better to buy a resale property with positive cash flow right now. If the market goes up as forecasted by the builders, you've got your positive cashflow as well as the increased value of the house. Good for you!

We don't want to scare you off, just ensure you keep your eyes wide open. As always, if you have any questions, we are here for you!