Is it a good time to buy PEI real estate?

The answer is always the same to this question - YES! If you are buying PEI real estate at a price you can afford, at fair market value (or below if you get that lucky) and at terms that you and your family can handle. Of course you should always have an objective when purchasing any real estate eg. Investment, to live in, etc., as well as a plan to get into ownership and a plan to get out.

The importance of being able to get in or out of a property and not lose on the deal depends very much on your financial status and the likelihood of it staying at least as good as it currently is, as well as what part of the real estate cycle your area is in when you make your purchase.

Real estate typically has a natural cycle going from a surplus of properties to a surplus of buyers and back again. The real estate market in your area is typically always in this cycle and it is up to you and your agent to determine where in the cycle you are buying in. Obviously buying in at the bottom of the cycle when properties are cheaper because real estate is plentiful and buyers more scarce provides the best possibility for immediate gains. However, it is just as important to the overall investment when you intent to sell as when you buy. If you wait out a complete cycle, buying in at a low ebb and selling out at a low ebb then your net profit on your real estate deal may not look so good. The important consideration is how long you are likely to hold the property. If you are looking for the "quick flip", which is not a likely scenario in the PEI real estate market since it is a more stable market than most, with less dramatic swings in values, then you will want to ensure that you are buying at the low end of the cycle and holding until the cycle tops out. If you are living in the house long-term yourself or have bought a long-term rental then exactly when you buy in and sell out may not matter so much.

Real estate has a historical yearly return on investment if held enough years to realize it and this will offset any influence from the real estate cycle. Also if your financial status is stable you will never be in a "must-sell" scenario.

PEI real estate makes a great beginner investment. Homes here are generally 40-50% of the cost of comparable homes in other provinces such as Ontario and BC. The US market continues to be a topic of conversation and concern both in the industry and among the public. However the Canadian and particularly PEI real estate market has never experienced the lows that the US is experiencing and likely never will. We don't get the "booms" (well at least not in the same way) and therefore we don't get the "busts".

If you are looking for real estate that will maintain and grow its value in a controlled way that will let you sleep at night, PEI real estate may offer what you are looking for.

Ron Wesley is a PEI real estate consultant and he is vast experience in PEI real estate field. If you want to know more about real estate visit here http://www.royallepagepei.com/