Q: I am interested in purchasing a two-bedroom apartment in the town of Osoyoos.
It would be in the price range of $130,000, and for rental purposes. Should I be concerned at this present time about the fears of an economic meltdown in the U.S., possibly causing a plummet in real-estate values in B.C.?
A: I get these kind of questions all the time. The U.S. cannot pay its debts and is like Greece or Zimbabwe. Comparing Greece’s debts to the U.S. is silly. Debt repayments must always be looked at in relation to the strength of the borrower to pay the debt back.
Greece has a regressing economy, its citizens avoid pay taxes as a sport, corruption is rampant and it has to pay 23 per cent on its three year debt.
The U.S. is a $15-trillion annual economy and the world stands in line to lend it money at under three per cent for 10 years. The comparison simply does not make sense.
In any case, you are not buying the world, the U.S., Canada or even Osoyoos …
You are buying a specific property in Osoyoos that makes sense to you based on your (hopefully) lengthy research on that market with a professional realtor and having made plenty of offers.
Real-estate values are already off substantially in the Interior … nothing to do with possible U.S. debt defaults . but much more likely due to other factors (the cyclic nature of real-estate markets, Albertans buying in Phoenix, etc.) Good time, however, to make some offers.