Everybody knows there are three rules in real estate: Location, location, location.
But are there any times when those rules are not valid?
Don Lawby, chief executive of Century 21 Canada, says some of the old rules don't apply if you are in city like Windsor, Ontario, where the economy has been derailed by the sagging automobile industry.
"I think the term should be the economy, economy economy," says Mr. Lawby. "You can be in the best location in the world but if the economy doesn't match the location, what good is it?"
David Goodman, author of The Goodman Report and a Vancouver-based commercial realtor who specializes in apartment transactions for Macdonald Commercial Realty, says forget about location if you hit the market at the wrong time.
"Timing is often as important a factor as location and if it's not more important, it's a close second," said Mr. Goodman. "If everybody has jumped on the bandwagon and you're the last guy on the train, you have probably spent too much, even if it's a prime location."
Mr. Goodman says many purchasers in Vancouver have bought property in the best area of the city only to see the value plummet because they hit the market at the wrong time. "Those people end up waiting four or five years for prices to get back to the level where they should be because they bought at the wrong time," he says.
His other suggestion is based on location, but it's more about looking for the up-and-coming neighbourhood versus what is currently hot.
"Sometimes, it's predicated on where transit is going or what communities are developing major infrastructure. A location that is marginal now can become a go-too area," he says.
But Elton Ash, executive vice-president of Re/Max of Western Canada, says nothing trumps location. "The location is always critical," he says. "The location is directly tied to price. Nothing beats location. Ever."
Read more: http://www.financialpost.com/story.html?id=2395697#ixzz0bQOiHOQ5
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This entry was posted on January 1st, 2010 | Posted in General