The benefits and fundamentals of home ownership remain strong. Here are 9 reasons to buy now:
- The overall average price in the Region has continued to increase. The overall average for the last 5 years has continued to stay positive. Statistics indicate an average of about 2.95% per year and an overall increase of 14.75% in the St. Catharines/Niagara area.
- Mortgage rates remain extremely cheap. Lenders continue to compete aggressively for business.True North Mortgage 1 Yr. Fixed 2.49%; 1 Yr. Variable 3% as of fall of 2012.
- Regardless of market conditions, motivated sellers compete with other homes for sale and price their homes competitively to attract buyers because they want it sold.
- Tax Advantages
a. First Time Home Buyers do not have to pay Land Transfer Tax at closing time.
b. With the Home Buyers' Program you can withdraw up to $25,000 out of your RRSPs ($50,000 for eligible couples) to buy a first home without tax consequences.
- You do not pay HST in Ontario on the purchase price of a resale home unless substantially renovated; 90%
- Owning a home offers inflation protection as appreciation over time generally outpaces inflation. Real estate has remained relatively stable in Canada. A good rule of thumb is to buy a home you plan to live in for at least 5 years.
- Consider owning as forced savings, as part of your mortgage payment goes toward building your equity in the home. For example, take a purchase price of $210,500, 5% down and a 5-year fixed rate at 3.59% amortized over 25 years. The principal amount of the mortgage after 5 years would be paid down by about $22,982.
- Because it’s yours, you can renovate and decorate any way you like.
- Above all, it’s the one investment that gives you the benefit of enjoying living in it