October Market Update: Location, Location, Location!

Location, Location, Location!

The most common real estate phrase is, “Location, location, location!” Does location really matter?  Does the location make a property more valuable? The answer is yes! Location does matter and it certainly makes a property much more valuable. Buyers will pay more for properties that are located close to Rapid Transit, Shops, Services, Restaurants, Parks/Greenspace, and Schools.

Rapid transit is the number one thing that buyers and tenants will pay more for. Rapid transit offers convenience, quality of life, and affordability. Yes, affordability! Comparing a property that is considerably more money to purchase versus a property that is significantly less money and located many kilometers away, property located within walking distance of rapid transit may be more affordable. The costs of owning, maintaining, insuring, tolls, parking, and keeping the fuel tank full, while commuting five days a week is costly. A forty-five minute commute could easily cost upwards of $650-$750 a month, not including the car payment. Add on a typical car payment and the commuting cost is more than a $1,000 a month. At current interest rates the $1,000 could service a mortgage of $200,000. Even when factoring in the cost of a monthly transit pass of $300. The affordability factor is outstanding, not to mention the potential quality of life. However, the real test is this, can you live without a car? If you could pass on the car, one could essentially buy a property that is $150,000-175,000 more with the same financial burden.

The STR (Sell Through Rates) statistics are also giving evidence that rapid transit is driving the market and buyers will pay more. The new Evergreen Line that will connect Coquitlam, Port Moody, and Burnaby to Vancouver by 2016 is driving the STR numbers through the roof when comparing to other similar communities in Vancouver.

Remember, “Location, location, location!” or is it “Transit, transit, transit!”

Every month is a month of thankfulness, however, the month of October is the official month of Thanksgiving. Happy Thanksgiving to you and your loved ones from all of us at Eximus.

Please feel free to contact me if you have any questions or would like to receive a copy of the monthly exclusive investor package. I am always available to serve and enjoy helping others understand the real estate market and investing. You can reach me at 604-807-4366 or randy@eximus.com.

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STR (Sell Through Rate) Formula = Sales ÷ Active Listings + Failed Listings + Sales  ​