Posts Tagged housing market
Mortgage Bits: Putting the Fear back into the Home Ownership Market
Posted by Top Home Loans in Economy, Mortgage News, Real Estate on November 18th, 2009
Over the lst year, the media and the real estate market have been pushing people into home ownership in Canada. The reason being is low interest rates. It is true, interest rates are at the lowest that they have ever been, and they are not expected to go higher for several months. This has spurred on first time home buyers to purchase houses like crazy; however, recent news articles are doing the opposite to market.
The newest wave of real estate articles have been doom and gloom articles that discuss about a mortgage bubble that is growing in Canada that is worse than the US. It states that as people build a dependance on cheap money, when interest rates go up, then people will have plenty of trouble paying their bills with higher interest rates. Another fear element is declining demand, the amount of new home buyers can only create real estate transactions for a certain duration of time before the demand subsidizes. Also, unemployment continues to be a growing problem in both Canada and the US.
These are some of the more immediate threats, while future threats including: global warming, baby boomers, and other major issues stand to destroy the fragility of this economic recovery.
So, what is it? Should you buy or should you continue to sit on the sidelines? Unfortunately, the answer is not the same for everyone. The decision is based on why you are purchasing. If you are purchasing based on speculation or investment, then it may not be the best time to purchase. Your dream positive cash flow property may quickly turn into a negative cash flow investment when the interest rates reset. On the other hand, if you are purchasing for the long-term, then you may be able to achieve the results you are looking for.
The best way to ensure security in your investment is by using hypothetical situations. For example, can you afford the payments at 5%, 6%, 7%, etc. With rates eventually increasing, and real incomes declining, then it may be possible you will see yourself in a cash crunch if you purchase beyond your means.
What would you do if interest rates increased dramatically? Did you plan your mortgage before taking it out?
Welcome back!
When Should I Sell my Property?
Posted by Top Home Loans in Economy, Mortgage Advice, Mortgage News, Real Estate on December 21st, 2008
After years and years of a housing boom, making money in the market was easy. All you had to do to make money in the real estate is buy a house and live in it for a duration of time. It was not uncommon for people to double, triple, and quadruple their investments; however, times have now changes. Some lucky people were able to sell there houses at huge gains, but for the rest of us, we still have the investment. Did we miss out?
A Different Kind of Investment
There are many types of investments available. You could invest in stocks, bonds, T-bills, GICs, and all other types of investments; however, a property investment is the only investment that gives you a roof over your head, and a place for your family to live. You will always need a place to live, so your property investment serves two purposes for you. Some other considerations is that on this investment you have to pay other fees like property taxes, heating, hydro, etc.
If you can still sell your property at a good price, then it may be time to hang on to your property because it can retain value so well. If you are thinking of buying a new property, then you could sel your property and rent. This will effectively help you to find a new property without the fear of not being able to sell your house.
Your Home, Your Investment
As a homeowner, it is important to recognize that you are the owner of the home. Think of your house as a mini company, and that you want to keep your house as valuable as possible. You should make the required enhancements and repairs to keep your property retaining its market worth.
When looking at your property, you should understand that yo are a long term investor in the mortgage market. It is extremely difficult to time the market; however, it is extremely easy to make money if you stay in the market for a long time.
In these times, it is highly likely that you will move to different houses throughout the course of your life. The houses that you move to may be extremely different based on the market that you move to. Your standard of living may change drastically from location to location that you move to, so be prepared for a change to your living conditions if you do have to move.
When to Sell?
Whatever history has shown us about our current time period, one thing remains true. A house is where you live, and it is your most important investment. House prices may go up and may go down from time to time; however, this is the location you picked to raise your family and live.
Although, looking back you may think to yourself that you wish you would of sold, or at least downsized; however, as a property owner, you do not get the luxury of selling a portion of your house, or selling the whole house but continuing to live in it.
The actual best time to sell your house and make the most money is to never sell your house. By moving only when absolutely mandatory, you will save up to approximately 10% of your houses value each time that you decide against moving. You also benefit by the compounding in value that your house offers over the years. If you don’t sell, then you will pay your mortgage off dramatically faster as well.
Real Estate Tips – How to Sell your Resale Home
Posted by Top Home Loans in Mortgage Advice, Mortgage News, Real Estate on December 20th, 2008
In this day and age, the market has become extremely difficult for people to sell resale properties. It is crucial that you make all the right steps in order to be able to sell your house quickly and at a great price. There are several important things that you must do in order to make sure that you can sell your house at a great price.
Properly Appraising your Property
Today, price fluctuations on property happen daily. With any changes in the market, you could see your property value rise or fall thousands of dollars. It is important that you get your property properly appraised by a trained professional to know exactly what you will be able to sell your house for. Make sure that your realtor knows the strengths and weaknesses of your property and has properly analyzed your property and surrounding properties to be able to make a good case for the sale of your property. Make sure to scan the houses in your neighborhood that are up for sale. You may even want to undercut the property values in your neighborhood if you need to move quickly.
Marketing and your Realtor
Today, it is getting more and more difficult to sell real estate. There are less and less buyers and more and more sellers. Make sure that your realtor is able to do the things that need to be done in order to get the job done. Anyone can put up pictures or make a virtual tour; however, is your realtor going to take the extra steps for you?
Research your realtor and phone your realtor’s previous clients to see what results they have had dealing with the realtor. Make sure that they are able to create a price that is appropriate for the house that you are selling. Make sure that they advise you every step of the way of what to do, and make sure that they make the process easy for potential buyers to be able to view and buy your house.
Staging the House Properly
In this new age of real estate, the clients that will be coming to your house to view your property will be people who will want to live in your house. You will not be getting speculators or investors. You won’t be getting people that would like to ‘flip’ your house. Instead, you will be getting mostly family’s that are looking for a house to raise their family. Make sure that your realtor helps you to inform you on everything that they need fixed and follow our guide on how to properly stage your property.
You must make sure that your property has the curb appeal, so that when your potential buyers show up to see the property, that they immediately know that this is the house that they will be buying. Make sure that it has that feeling and that it is a house that even you would buy for yourself. If it does not feel that way, then there is something that you have not completed in order to make sure that it gives that kind of feel.
Talking about the Market
Today, housing prices have been going down over the past couple of years. When home buyers come to look at your property, they will want to confirm that the house value will not only stay at a reasonable price, but will also go up in value. They will want to ensure that the investment that they make in the property will be a good investment, o it is up to you and your real estate agent to be able to talk to your potential buyers and make sure that you can convince them to buy your property, and that it will be a sound investment.