SIR Logo

Call Andrew at 1 (855) 876-7334

Investing in Real Estate and your Health in 2023

Portrait Andrew Schulhof

#303-1338 West Broadway
British Columbia
V6H 1H2

Looking after your health is incredibly important, both your mental and physical health. Investing in real estate should support both, not take away from either one.

Invest in Your Health, Your True Wealth

In December, I received a not so gentle reminder that you that your number one investment (outside of real estate 😉) is your health!  In early December, my back went out of alignment, and it affected every part of my life and everything else became secondary. I was basically incapable of carrying on my normal activities for almost three weeks (I guess I am getting older…yikes!). The good news is that, after some focused and consistent help from professional practitioners, I am significantly better. “Your Health Is Your True Wealth” rang true to me.

As we are at the beginning of 2023, it is always a good time to take stock of what has happened in the real estate last year, and how you can benefit from this in the upcoming year. 2022 was anything but boring when it came to real estate. There were several key events that have set the groundwork for a continued and interesting 2023 real estate environment.

2022 A Year of Tremendous Change

The Bank of Canada raised the overnight lending interest rates seven times lifting the prime interest rate from 2.45% to 6.45% in only nine months. This led to a complete shock to the financial system across the country. The intent was to combat rapid inflation. The most significant change is that housing market sales tanked in key real estate markets across the country, prices also dropped in those frothy markets.

Source: RBC Economics Jan 2023

Most housing market conditions are now in a balanced position so that buyers have product and time to make informed decisions. This is a very good thing for everyone except for those speculators that thrive in the unsustainable and rapid growth appreciation conditions.

In 2022, affordability was at the top everyone’s mind and the various levels of Government were compelled to act. There were several Government policy announcements at both the federal and some provincial levels, such as a 2-year ban on foreign investors, a buyers’ cooling off period, and the removal of certain rent restrictions announced in BC to name just a few. I suspect more will be forthcoming in 2023.

With all the changes, there will be opportunities for those that are prepared. Look back to the financial crisis in 2008 and the resulting opportunities that so many investors took advantage of and are reaping the benefits.

Looking forward to 2023

I strongly believe that in most cases there is no need to rush into a deal unless it ticks ALL the RIGHT boxes for you. The talk of recession is in full swing, and we know that the Federal Government and the Bank of Canada is determined to reign in the continuing inflation with a target of 2% and are prepared to break things to do it because the results of not doing it will have an even more profoundly negative effect. Real estate is expecting to continue to drop in most markets across the country with some at a much greater level than others.

RBC research forecasts that further drops in housing prices for many Canadian housing markets, such as Vancouver, Toronto and Montreal for the near future will continue as sales numbers stabilizes.

It is going to takes some time for the impact from the rising interest rates, and from the trigger points in variable rate mortgages to be fully felt throughout various markets and that is where I believe the opportunities will present themselves.

Some provincial housing markets such as Alberta and some Atlantic provinces have and are expected to continue to benefit from the interprovincial migration and international immigration.

Source: CREA, Better Dwelling

I believe the real estate opportunities are going to be in those markets that haven’t experienced crazy appreciation but have the right ingredients for a sustainable housing market.  As I have mentioned over and over again, real estate is a function of the economy (lagging indicator) and is predominantly local. Here are a few questions to ask yourself if you considering buying or investing in real estate?

  • Where are the sustainable jobs going to be?
  • Where are the people moving to?
  • What markets are affordable?
  • What markets haven’t experienced frothy appreciation?
  • Where can one financially get ahead i.e. disposable income?

I personally believe that Alberta and specifically Edmonton have the right ingredients for sustainable future real estate growth, which is why I chose to get my real estate license there.

So from our family to yours, Happy New Year! Please take care of your health (and yes my back is much better!) and I will be happy to take care of your real estate needs whether that is locally in Greater Vancouver, in Edmonton with my team, or through my Canadian and international professional connection.

If you would like to discuss current real estate conditions and brainstorm what would be the right course of action for you in this market, please feel free to book a meeting with me by clicking here.

Get in Touch

If your are interested in investing in real estate, or looking to list your current home, I can help you form the appropriate strategy and answer any questions you may have. 

Related Posts

5 Life Lessons Learned in 2022

Lots of valuable lessons were learned through 2022 as we were all presented with a degree of hardships, challenges, and opportunities. It is important to take time to reflect on everything that was learned so that these lessons aren’t wasted ones.

The BIG Benefit of Lifestyle Investing!

Lifestyle is all about improving the quality of your life through real estate and a well constructed strategy. Create the experiences you want for yourself and learn how to do so with the right real estate investment strategy.

Header Image

Investing in Properties with Negative Cash Flow? Why?

Does an investment property have to cash flow to be successful? With the right strategy in place and knowing what skills and circumstances are specific to you, you can find the right market and real estate to make positive investments.

Is Alberta the Best Province to be a Landlord?

Let’s examine the various attributes each province has that feed into being a landlord and owning investment real estate. Which province is the most attractive to real estate investors and why?

Heading of the blog, monopoly board with a card reading,5" Mistakes Landlords Must Avoid"

5 Mistakes Landlords Must Avoid

It is more important than ever to make sure you are doing everything you can to get a positive return on your real estate investment properties. Avoid these 5 mistakes that landlords make and you will be well on your way to a profitable portfolio.

Hourglass in front of a sunset

Should you Buy Real Estate and Wait or Wait to Buy Real Estate?

Keaton Kirkwood does an excellent job of breaking down tough scenarios as a mortgage broker. Is it the right time to buy? Should you wait? He brings reason and a balanced, professional opinion to a difficult question in real estate investing right now.

Construction Financing and Building a Home

There is a lot of misunderstanding surrounding building and construction loans. Keaton Kirkwood breaks down what is needed and what to look out for when entering into a new building loan. This is incredibly important information for real estate investors.

Tips for Renting to Millennials

Millennials make up a significant portion of renters in Canada. You need to know how best to advertise your real estate investment property to them and how you can provide a great offering that keeps them there.