Is it the right time to buy?

[Joe Crawford]

According to real estate industry sources, the national average house
price in Canada is expected to continue to rise this year and through
2009. Both the Canadian Real Estate Association (CREA) and Canada
Mortgage and Housing Corporation (CMHC) have predicted that house
prices will climb to new records in major markets all across the
country. If you're a prospective homebuyer, that news may leaving you
wondering whether it's still a good time to buy a home or more
importantly, whether it's the right time for you.

How you arrive at an answer to those questions depends partly on where
you're starting from. If you're starting out in your first home, it's
fairly straightforward. You calculate your carrying costs and the
potential for return on your investment and then determine if that
situation will improve if you wait. With today's low interest rates,
the cost of carrying a home is now very affordable. The low mortgage
rates also provide you with an opportunity to pay down more of the
principal in those critical early years of your loan. Paying even a
quarter of a percent less interest in the early years of your mortgage
could add up to a savings of many thousands of dollars over the life
of your loan. Your Coldwell Banker(R) real estate professional will be
happy to help you estimate what your expected mortgage, taxes,
utilities and other carrying costs will be for a home in your desired
price range.

Your Coldwell Banker representative can also advise you on how much
more your carrying costs will be when housing prices increase or when
mortgage rates go up - or both! In most cases, a simple calculation
will show you that you have a lot to lose by waiting. Not only would
your carrying costs be higher if house prices or mortgage rates go up,
you'd also lose any equity you could be earning as the value of your
home increases beyond your original purchase price. These factors
will usually outweigh any savings you might realize by entering the
market later with a larger down payment. This is especially true when
you consider you still have to pay rent on another location while you
save for that down payment.

Perhaps you're one of those fortunate people who already owns a home
and you need to decide if it's a good time to sell it and buy another.
You've got both ends of the transaction to consider, so your primary
concern isn't just the price of the home you want to buy. It's the
difference between the sale prices of the two properties that's
important. If you're downsizing and want to come away with a cash
surplus, it's to your advantage to do so in a market where homes are
commanding top dollar. Even if you're upgrading, it still pays you to
act now and take advantage of the property appreciation that's to
come, and do it before the gap between the two properties widens.
Want more advice? Talk to your local Coldwell Banker real estate
professional today!

www.kitchener-waterloo-homes.com