While hard economic times can definitely be tough for a lot of people, they also provide strategic opportunities for those with the means, and courage, to take action. That's why if you're looking for a luxury home in BC, the time is ripe with opportunity. Foreclosures have become a fact of life in the recent BC real estate market, and while that seems like it should be bad news, it really isn't. Luxury foreclosures can turn into an excellent opportunity for upgrading to the executive home you've always dreamed of, or getting your foot in the door of a profitable investment.
Another option for astute buyers is pre-foreclosure. Finding sellers that are on the verge of foreclosure can be a valuable asset. Talk about a motivated seller! They need out of debt, and they want to avoid the credit black-mark that a foreclosure can be. Once again, they are likely to sell at-cost, forgoing any profit for themselves just to come out clean.
Real estate auctions are also a way to find great luxury homes for less. Smart sellers know they have to give a little in order to make the process work. Holding out for a higher bidder won't get them far in this economy. Two Vancouver Island condos have recently been put up for auction—with no reserve bid. The condos, a two-bedroom in Courtney assessed at $311,000, and a one bedroom unit in Parksville that was recently listed for $369,000, are both on the block with no minimum bid. Some say it's a huge risk, but the owner doesn't seem to care. It will likely save him a lot of time and the hassle of keeping the condos for sale for months. Far from setting a low standard, it will likely spark enthusiasm and reduce the flooded market, which could in turn contribute to better local property values. Obviously not everyone can afford to auction real estate in this way, and that's probably for the best. But if you can afford to buy it, you, and the economy, are better off in the long run.
Many developers (although not all) have felt the crunch of a tight market and are willing to let their new homes or condos go for less. After all, including all the high-end features makes a luxury condo development expensive to build. Imagine finishing construction, totally in debt due to high-cost, top-of-the-line materials, and trying to sell in a market full of buyers with cold feet. A developer in this situation is likely to welcome any offer. One Nanaimo developer took out a 3/4 page add in a local newspaper offering $50,000 cash or a new Cadillac as incentive for buying one of their building lots.
All of these are examples of the bright side of an economic decline. While spending a lot of money in a down-turned market seems counter-intuitive, that's when the opportunities to make more money in the long run are presented. Also, spending is what will truly turn the economy around.