Fraser Valley Rent 2 Own is a “Client-first” program.  But occasionally we come across opportunities that are just too good to pass up. This is one of them.  It requires less deposit money than usual and a much greater portion of your monthly rent goes to the rent credit account.

So I thought I’d let everyone know about this awesome opportunity! If the shoe fits . . .

This 4-bedroom, two-bath, split-level home in a central Abbotsford, family-friendly, neighbourhood has been extensively renovated and updated. It sits on a large corner lot on a quiet street, includes sandbox, a play structure and brick patio. Just around the corner is a public park with another playground and there’s a school just down the street.

This home can be yours for only $7500 deposit–barely half of what it would usually be—with a monthly rent credit as high as $800–almost double the usual amount!

We can offer you this great opportunity because we have an exclusive deal with an out-of-country owner, who would really rather have you looking after the yard than him. (His rake handle is not that long.)

The down side?  This exceptional deal is only available for this property! Unlike our normal program, you don’t get to choose your own dream home. But this is a pretty good one to do your dreaming in! NO MORE NIGHTMARES about being stuck in a rental forever!

And here’s the clincher! If you act fast, the owner said he’d take an additional $5000 off the buyout price. Did we mention that the owner was motivated?

Normal qualification process will still apply. But with this low deposit you will qualify easier. Apply today, or simply REPLY to this post.

Real estate cycles

I get quite a few comments these days from homeowners who are hesitant to sell because they think the prices are down and will rise before long. For the same reason, I also get comments from those who would like to buy now if only they could.

Is it true that prices are down, or that they are likely to rise? On what basis do people project a better future market?

First, housing prices vary a great deal, depending on the kind of property. In our area, prices for high-end property have dropped over the past few years while prices for lower-valued, free-hold properties have held their own or risen modestly.

Two reasons lead to anticipation that the market may be on the verge of picking up again. One is “technical” analysis; the other is “fundamental” analysis.

History shows that the real estate market always goes through cycles. The cycle has three phases: the boom, the slump, and the recovery. So, if the cycle is clearly in the boom phase, it should be a warning to beware of a slump coming. On the contrary, if a cycle has been slumping, one can anticipate a recovery; it might, in fact, be a good time to buy. Perhaps that is where we are now; many people think so.

It used to be assumed that the cycle also followed a predictable time-frame. Every “x” number of years there would be a boom. If that was true, then market timing should have been easy. And everyone should be able to do well with real estate. But, that is no longer the case (if it ever was). One of the biggest challenges is to determine where we are in the cycle.

When we are in a boom, for example, how do we know whether we can still expect significant rise, or whether we have peaked out? When we are in a slump, who’s to say whether we are on the way down, with more downward pressure still to come, or have already bottomed out and are about to see recovery?

That’s where fundamental analysis comes in. Those who study these things look at what’s happening in the larger world and in the larger local economy, to see how various influences are coming together to affect the local market now and in the near future.

Here are some of the major forces that I see right now:

– The world economy, especially in Europe, is still quite weak. That affects our own economic outlook and produces downward pressure on housing demand and prices.

– The US economy is starting to recover. We’re always influenced by what happens down there, especially when they need our lumber to build new housing. This brings upward pressure on our housing industry.

– We are expected to have a shortage of lumber supply in the next few years as the harvest of pine-beetle lumber is completed, the demand in the Far East increases and the US enters a building upturn. This should cause an increase in new housing prices, which influences used home prices, as well.

– The end of the HST eliminates one source of confusion and uncertainty for consumers and may make them more ready to make buying decisions.

– The imminent return of the NDP to power would normally be a reason for economic caution. Yet, this has been so long anticipated that its effect may be muted or non-existent.

So, putting it all together, I’m inclined to agree with those who think our area is on the verge of recovery.

This article appeared in this month’s Action newsletter. A whole lot more is available to those who subscribe to this monthly collection of informative articles, news about rent-to-own, humour, recipes, games, etc. See the tab on the right to learn more about subscribing.

Ron Geddert