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.
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:
- Real Estate Fraud
- Planning a Housing Budget
- Choosing an Amortization Period
- 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.