Is This the Right Time for You to Buy?
There are really two questions involved in making the decision if the time is right
for you to buy. The first thing you may want to consider is whether it is a good
time in general to make home purchase. Then you want to take the same principles
and apply them to your own life to decide if the time is right for you.
In recent months, the real estate market in Canada has been improving after an initial
slow down and there is no reason not to expect that the market will continue to
improve. Sales of older homes and of new construction are on the rise. The current
concern is that interest are starting to climb but although interest rates may not
be as low as they have been previously, they are not rising to the point that should
put off potential buyers.
The best idea; however, is not to be too concerned with what the rest of the nation
is doing but focus instead on whether this is a good time for you to buy a home.
Take the time to take a long, hard look at your personal finances and lifestyle
and then decide if the time is right. Investing your money in purchasing a home
is more about you (and your finances) than what the experts say will happen or what
makes sense. So, although, interest rates may be on the rise and it may appear to
be a good time to buy, if you are not financially ready to take on a mortgage then
the best most prudent decision may be to wait.
How you reach your decision is really dependent on from where you are starting.
If you are a first-time home buyer, for instance, then you’ll want to determine
your carrying costs and then calculate the probable return on investment. If the
picture doesn’t look promising then the next step is to decide if the circumstances
would likely improve if waited.
Low interest rates make the cost of carrying a home relative inexpensive and also
offer the chance to pay off more of the principal. A quarter of a percent less interest
can result in saving thousands of dollars over the term of your loan.
