Are you over-leveraging in real estate in Metro Vancouver?
Billions of dollars have been invested in real estate in Metro Vancouver, especially in the last few years and we have had the up trend in price.
According to Trading Economics.com, Canadian household debt to disposable income ratio in 2017 was 173.34%, reaching an all time high in the third quarter of 2017.
I always advise my clients to have a Plan B in case the market goes sideways or takes the down trend. At the moment the majority of people is very optimistic about real estate and as a result, a lot of them become flippers without thinking that the market may change direction unexpectedly.
Please check the video in the link below which shows the cycle of economic machine by Ray Dalio. Ray Dalio is an American billionaire investor, hedge fund manager and is the founder of investment firm Bridgewater Associeates, one of the world's largest hedge funds. As of January 2018, he is one of the world's 100 wealthiest people, according to Bloomberg.
To discuss a Plan B for your situation, please contact me for a complimentary consultation.