One question I am constantly asked lately is "is this a good time to buy?" The answer is ABSOLUTELY 100% YES! Hold on a minute, I should explain my enthusiasm! Many people decide to buy property in the spring, it makes sense, when the country is being rejuvenated by sunshine, warmer temperatures and a new lease on life we often feel like it's time for a new beginning. The problem of waiting for the spring is that prices generally go up because sellers are often looking to see what they can get for their homes and bank rates often rise. Right now if someone is selling their home it's usually because of other reasons like, moving jobs, distress sales, estate sales etc. . These sellers are "motivated" and a motivated seller is usually ready to negotiate. With bank rates at an all time low a mortgage is often cheaper than rent and as soon as you make that first payment you've paid down SOME of the principle plus the average percentage price increase. For instance, if you brought a home in 2005 for $150,000 and maintained it, you could easily be sitting on at least another $20,000 more equity PLUS what you have paid against your mortgage. No land transfer fee for first time homebuyers, and after this recent budget look at this:
Canada's Mortgage Industry Welcomes Federal Budget Announcements
Earlier today, federal Finance Minister Jim Flaherty tabled the federal budget. Several measures affect Canada's housing and mortgage industry.
- Temporary home renovations tax credit of up to $1,350 for eligible home renovations and alterations
- Increase in the home buyers RSP plan, withdrawal limit increased to $25,000 from the current $20,000
- A new first time home buyers tax credit that will provide up to $750 in tax relief for closing costs
- Broad based personal tax reductions including an increase in the personal exemption and increases to the limits for the two lowest tax brackets
So, now you know why I'm so enthusiastic about buying right now.