The Canadian housing market is pretty hot these days, as there are new developments everywhere and houses getting sold higher than the asking price. This is almost a replica of what happened in the United States several years ago when the housing market was very, very hot. It is well documented that it is financially wiser to buy a bigger home when the housing market is down, but what often happens in real life is the complete opposite since people always buy a bigger house when the market is hot, thinking they can make more money.
For our Canadian friends that want to make money in real estate, all I can say is good luck and don’t get caught up in the bubble like many people have in the states. Greed is always the last thing we want to have when we buy an investment, especially with a huge purchase like a house. We should buy what we can afford, so we don’t get caught if there is a correction.
For most people, buying a house should primarily be a lifestyle investment instead of a financial investment. We should buy because we want to live in the house but not because we think money can be made! Live within your means and you will get rich gradually. Fall for get rich quick schemes by taking on too much risk and we will be sorry 99% of the time.
Be sensible, follow sound advice and always think about your strategies on the likelihood of success. Trust your instincts and common sense since those are some of your best indicators.
Fellow Canadians, I wish you the best.
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