Are you Paying Too Much – Kelowna Mortgage Evaluation

Good morning Kelowna Mortgage Holders.

We hope you are enjoying the start of Spring.  Many of us are just now doing a spring clean up of our homes, getting rid of junk we never use, turning the sprinklers on re-adjusting the sprinkler heads, hosing off the driveway, cleaning the gutters etc … we are giving our home a once over making sure everything is working right.

Another thing we should be do doing each year is re-evaluating our mortgages and our debt structure.  Rates change and so do the options that go along with rate changes.  A very well known mortgage broker in the Vancouver area has been re-assessing his clients mortgages annually for years, in fact Oprah Winfrey herself has endorsed this mortgage strategy on a television show called Million Dollar Neighbourhood.

The Lending Outlet Kelowna Mortgage would like to invite you to take part in a Kelowna Mortgage Re-Evauation project free of charge.  We can visit your home or you can come into our office to discuss your current mortgage structure and see if you have any room to improve and to save money.  Our brokers have been doing this for a long time and have amazing relationships with over 100 lenders.  Sometimes we are even able to blend current credit card balances into a new mortgage giving you improved cash flow each month.  The possibilites are endless.  It is on these types of Mortgage re-evaluations that Kelowna Mortgage Brokers shine.

Just complete the contact form to the right of this post and we will get back to you within 2 hours.  You have nothing to lose.

Peachland Mortgage Broker

images-4In the summer of 2002, the agile Dominican superstar Alfonso Soriano became the first New York Yankee in history to notch 30 home runs and 30 stolen bases in a single season. Soriano broke another record that year: He was the first Yankee to strike out 157 times in a season. Asked to explain his habitual wild swings, Soriano produced a great line: “You don’t get out of the Dominica by taking pitches.”

There are lots of other lines about investing in stocks and real estate.  You can’t time a market.

The truth is they were lucky. If we really understood statistics we would know that in all systems someone has to win at some point.

So what is my point today?

Don’t try to time the real estate market. There are too many variables.  In a balanced local economy real estate will match inflation.

In down years it tracks below the inflation rate, but eventually it will catch up and hence a boom.

This also works in the inverse. A year where prices exceed the inflation rate invariably turn to a down market as the price revers to the inflation trend line.

What does this mean for Vancouver and Kelowna respectively? Vancouver has maintained its trend line with inflation over the past few years and maybe exceeded it slightly.  The Vancouver Real estate market is probably flat for 2012.

KELOWNA has been below inflation for 3 or 4 years and is probably headed for an upward correction in the next year as inventories decline and building permits stay low.