May 3, 2013
The likely reason is, again, conflicting messages in the media. Headlines warn that Canadians are still taking on too much debt; that the condo market in Toronto and Vancouver is slowing down; that interest rates are set to rise; that the market is softening; and that we’re still in a housing bubble. On top of that there are rumblings of inflation going up, the price of gas is up, and the jobs situation is still somewhat precarious. So what is a home buyer to do?
Decide whether you want to buy a house, if you have the means to buy a house, and then go out a find one. The most important factor is your personal readiness. A home is a long term investment and its value will fluctuate up and down over the course of your tenure in it. It is both a commitment and an achievement that reflects your aspirations and lifestyle, and offers a great deal of personal satisfaction, as well as financial stability.
There is no good or bad time to purchase. Mortgage rates and house prices will fluctuate but over the long term, home ownership is a sound investment that compares well with other investments. When you invest in mutual funds, the mantra for most is buy and hold. Similarly, your home is a buy and hold investment.
If we examine the current situation we find historic low interest rates, a housing market where the prices in most markets are stabilizing, a healthy economy that is growing and an inflation rate that is holding steady, thanks to the fiscal policies of our government. So, the sooner you get into your new home, the sooner you will begin to build equity and reap the financial rewards, as well as the personal ones.
Ask yourself:
If you answered yes, then start to explore your options; find out what’s available and what’s involved. It’s the right time to buy.