A Big Year Ahead

by Darrin DeRoches January 9 - 15, 2014

It’s a new year so let’s look ahead into the Hamilton real estate market.     First things first — money. The Bank of Canada overnight rates may rise this year but other outlets are saying that they will stay firm until mid–2015. Money has been cheap for some time and will stay low for this year which means that you can buy more houses since you will qualify higher. If the rate does start moving you will still have time to get into the market this year. A little bump in the rate will only make small increases in the average mortgage payment.     Condos in the city will become the most talked about real estate topic this year. There are several major projects that will start selling this year and everyone will weigh in with their opinions. The speculator can make some easy money if they buy the right project at the right time. A lot of agents will try to “push” a certain project since their company is behind it but you really have to be careful when speculating. The Connaught, the Tivoli, the Lister Block and a few others will begin selling this year but which one should you pick? An independent broker like me who has bought and sold investment properties — personally — can give you the real insight without any bias. Condos are making a splash in Hamilton this year and there is money to be made.     2014 will also bring a plan on the land around the airport and this will also change our city as we know it. There are great opportunities ahead and the savvy investor can really make money if they see the big picture. Business parks will grow fast and the airport lands will become the biggest investment we have seen in decades.     The new Go train station and stadium will also be completed this year and these projects have already created great interest in their areas but again the smart investor can find amazing opportunities if they look ahead. If you are looking at buying a rental or opening a business in these areas the right price and location can bring great returns.     All this investment in the city will bring jobs which in turn will create needs for more rentals and single family properties. If you pick the right property in the right areas whether it is downtown, by the airport or by the bay, you can win with the right real estate or win big with the perfect location. Work with the right people and you can realize big returns in real estate this year. 2013 brought a 7.5 per cent return on real estate plus the amount you paid down or better yet your tenant’s pay down will bring an even greater return.     2014 looks to be a very exciting year for real estate in our area where we will see the average sale price for a home to hit the $400,000 mark and condos, stadiums, transportation, jobs are all coming to our city. Take advantage of it and you will be enjoying your investments for years to come! 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.