Where You Are Buying

by Darrin DeRoches August 28 - September 3, 2014

It amazes me that certain properties are getting a lot of interest and multiple offers on them even though you would not find one Hamiltonian putting an offer on them. Recently there have been a lot of posts on the internet to “expose” properties that have had murders, meth labs or deaths in them. These posts get their information from either police reports or newspaper reports and then they tag them as “undesirable” properties. The interesting part is not these deaths etc. but properties that look so amazing but are on less desirable streets or areas.     This week clients of mine got a great deal on an income property and were willing to go into competition to get it. There were over twenty viewings on the property but when it came to offer day – we were the only ones. The funny part was on the same street, a similar property went through the same thing a few weeks ago. The big question is why? The house needed no work. The area is prime for rentals and as I stood outside waiting for the sellers to sign back the offer I had three people stop and ask me the price, condition etc. Everyone was looking at the property but no one was offering? The simple answer is timing and vision. This area was a mess ten years ago and it is not only an up and coming area it is already there. There are new condos and townhouses being built and sold for top dollar but people from Hamilton still look at the area as old and undesirable. Out of Towners take a look and they see the downtown feel, walkability and great price for what you get. Hamiltonians look at it as old, no parking and overpriced for what you get. My clients will be making money the second they move in and in ten years people will be saying “I wish I’d bought in this area ten years ago!”     On the other hand, the same agent had multiple offers on another cool, Victorian property in an area that will be still rough and undervalued in ten years. If you were to look at both properties and invest your money –the one my clients bought will bring you more return today, tomorrow and definitely in ten years. The house may be smaller but the numbers don’t lie. You have to be aware of the area and be realistic in how the market will grow. Out of Towners were making offers on the other property and their agents just do not know the market. I would not go into Toronto and pick the next great neighbourhood and their agents are coming here without doing their homework.     Be aware of where you are buying and better yet, hire a local broker who knows the market and has a proven track record. Ask the right questions or you will end up in a cool house in a terrible neighbourhood. Remember the three most important words in real estate – location, location, location! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca