Buy Young, Buy Smart!

Buy Young, Buy Smart

Like everything in life and business, an injection of fresh blood into the real estate market is a good thing. So it was last year, when many more first-time home buyers jumped into the market than the previous year. Recently released survey information from the Canadian Mortgage and Housing Corporation (CMHC) indicates that in 2009, 43% of Canadian home buyers were first-timers - up from 36% in 2008. Many of these first-timers were actually very young adults; 35% of all Canadian home buyers last year were between the ages of 18 - 34.

Other interesting findings in the 2009 CHMC data include:

●66% bought a home that was more expensive than their previous residence; 22% bought a less expensive home

●59% bought a larger home; 24% downsized

●55% purchased a single-detached home; 18% bought an apartment condo

●42% of those intending to purchase, plan to make a down payment of 20% or more

The resale home market benefited last year, as indicated by this CMHC data: 74% bought an existing home; 22% bought new construction.

The More Information, the Better

If you are a newbie in the real estate market - or even if you’re not - in this time of complicated mortgages and a changing real estate landscape, it can only be in your best interest to arm yourself with the most recent, relevant information. Aside from seeking the help of a professional mortgage broker (always a good idea), there are resources out there that will steer you in the right direction.

For example, the Financial Consumer Agency of Canada has produced 4 new tip sheets that are particularly aimed at first-time homebuyers, at their website, moneytools.ca.

The FCAC publishes and distributes dozens of free tip sheets and brochures for Canadian consumers, including those looking to buy and/or sell homes. The latest of these concern:

  1. Real Estate Fraud
  2. Planning a Housing Budget
  3. Choosing an Amortization Period
  4. Understanding Variable Interest Rate Mortgages

FCAC Commissioner Ursula Menke says, ‘buying a home is very likely to be the most important investment you will make in your lifetime... it is essential to fully understand all of the costs involved” - the same advice I’ve shared with my readers in this blog before.

Posted by Don Lawby on July 26, 2010

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