Tuesday March 10, 2009

Why would I buy now?

There are many reasons why you should buy now.

Interest rates are very low: you can get a 5 year mortgage for 4.19% (March 10^th, 2009) or lower and the rates will not stay this low forever... they might not go much lower.

In spite of the often misleading articles in the newspapers, the market in downtown Toronto is relatively strong partly because the increases in value over the last few years were not anywhere near the over inflated values of properties in Calgary, Vancouver and other cities. In Toronto, if you bought a house in 2000, then sold it in 2008, you would have benefitted from a 56% increase in the value of that home. Many neighbourhoods had higher increases over that time span.

There is still a strong demand for housing in downtown Toronto. Many people are still waiting for the prices to drop significantly which is not going to happen unless there is a much greater supply than the demand. Many houses are still selling, although they can take longer than in the past.

If you plan on staying in a house or a condo for longer than 3 years chances are you will be in great shape when the broader markets recover. Meanwhile you have a house to live in while youre building equity and enjoying the many benefits of homeownership.

Buyers with good credit, a downpayment and a secure job have a unique window of opportunity. If you are selling your house in order to upgrade, you might get less on the sale of your house, but that same discount applies to the house you are buying which benefits you financially. Better yet, buy a house with an apartment to help with the payments. Later, if you need more space, you can take over the apartment rather than building an addition.

All in all, there are many options available in this market. Dont miss the opportunity to negotiate a better deal rather than experiencing the wrong side of multiple offers. Wait too long and you could miss out.