Are you ready to buy a house? Read these home truths first
Many young Canadians associate home ownership with their inevitable coming of age, but first-time buyers flocking to the housing market should be armed with knowledge.
As homeownership rates for those in their twenties have been steadily climbing over recent decades in all but the lowest category of income earners, many of these young people are entering the market without knowing much about buying their first home.
Last week, I wrote an article about the resurging housing market. After five years, recent data indicates that we're in the midst of a recovery. Many individuals are buying homes for their own housing needs, but a large number of investors are jumping into the market as well.
There are several ways investors looking for income can get into the market without taking on ownership of physical property. But before we discuss some real estate plays for investors, let's take a deeper look at who's buying real estate these days.
Pfizer Canada surveyed Ontario and Quebec real estate agents about the cost of a home's resale value and found that having the smell of smoke ` which gets absorbed into carpets, walls and ceilings ` can lower the sale price by up to 29%. "With an average home in Ontario listed at $369,000," the release says, "that may mean a loss of up to $107,010 for homeowners."
The crash in the price of gold has shaken many investors, particularly those who viewed bullion, gold stocks or precious metals in general as some sort of `safe` haven. On Twitter this morning, someone asked the not-so-innocent question of what can be considered safe. This particular Tweeter obviously had his answer, since he`s a real estate agent.
Having just given a talk over the weekend to the Real Estate Investment Network (REIN), I agreed with this person that real estate certainly can be considered a haven of sorts, assuming it`s one part of a broadly diversified portfolio of financial assets.
Why Preet Banerjee is choosing renting over buying
As house prices go up and incomes stagnate, renting is become more attractive.
One of the culprits? Low interest rates. They affect buyers and renters in different ways. As a buyer, every $1,000 a month might have qualified you for $150,000 in mortgage principal at 7 per cent. At 3 per cent mortgage rates, all of a sudden your $1,000 per month can get you roughly $200,000. That`s a 33 per cent increase in what you can afford to buy - all because of a change in interest rates. But as a renter, your $1,000 monthly allotment to rent doesn`t rise or fall based on interest rates.
One of my favourite things to do is educate the public about new condominium residences across the Greater Toronto Area. Want to know where to start? Here are all the questions you need to ask ` who, what, when, where and why ` before buying a new condominium.
When you entrust your future home to a builder, you want to make sure you are dealing with a reputable company. The good news is that in the Greater Toronto Area, we are fortunate to have some of the world`s finest builders creating our new home communities.