Monday, January 7, 2013

The best time to buy a house is now

When is the best time to buy a home? People have differing opinions as to when the optimum time is to purchase a new home. According to Mark Di Vincenzo from Time Magazine's  Business & Money section, January is the best time.
 He feels that as there are fewer buyers due to nasty winter weather, you are less likely to have bidding wars. He also figures that after the Christmas season bills arrive, carrying a mortgage for a house you do not want makes you want to sell even more. While I agree with him on these points he seems to forget that after Christmas no one wants to list their homes and that the majority want to wait until spring.
    I have found that the start of the second week in January brings out the buyers. After the Christmas decorations have been taken down many people start to think about spring and the idea of moving into a new home. Perhaps it's because their rental apartment is getting too cramped with all the new Christmas toys but I have found that year after year, this January trend continues to occur.
    I , however, have a different view on when the best time to buy a home , rental property or second home is; the best time is NOW.  Why?  There are a number of reasons.
   1-  While you are saving to purchase a home, housing prices are going up. Don't expect them to drop unless you live in the greater Vancouver area or perhaps in a condo in downtown Toronto.
 2- No matter what price you pay now, you will start developing equity in your property by having the value of the property go up and your mortgage payments lowering the balance each month. When you are renting, it's the landlord who is benefiting, not you.
3- finally, the sooner you move into the home you can start making improvements which will add value to the home; unfinished basement, upgrading the kitchen or bathrooms , landscaping or building a detached garage can all add to the value of the home. Some of these improvements can even be attached to your mortgage to make the monthly payments manageable.
 Contact me to find out about the Purchase Plus Improvement program available through CMHC and Genworth Financial.
   If you agree that now is the best time to buy, the first step is to get pre-approved for a mortgage.. Contact me via my website to get started on the home buying process.
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