9 Solid Reasons to Buy a Home Now

The benefits and fundamentals of home ownership remain strong. Here are 9 reasons to buy now:

  1. The overall average price in the Region has continued to increase. As of August 31, 2010 the 12-month average is up 6.89%. As well, the average sale price in each city in Niagara is remains positive.
  2. Mortgage rates remain extremely cheap because Lenders continue to compete aggressively for business. As of September 23, the Centum Financial Group has posted a fixed, 5-year mortgage rate of 3.59% on approved credit; in spite of the Bank of Canada boosting their policy interest rate.
  3. Regardless of market conditions, motivated sellers compete with other homes for sale and price their homes to attract buyers because they want it sold.
  4. Tax Advantages
    a. You may be eligible for the First-time homebuyer’s tax credit that offers up to $750 in tax savings to help with closing costs.
    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.  
  5. You do not pay HST in Ontario on the purchase price of a resale home.  
  6. 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.
  7. 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. 
  8. Because it’s yours, you can decorate any way you like and no landlord will force you to leave.
  9. Above all, it’s the one investment that gives you the benefit of enjoying living in it.

Sources: Wall Street Journal, Brett Arends (9/16/10); MACLEAN’S Magazine (9/13/10), page 54, “Avoiding the Crash”.

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Eugene Pilato

Eugene Pilato

Broker of Record
CENTURY 21 Today Realty Ltd., Brokerage*
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