5 Reasons Why Now is the Time to Purchase a Home
After having survived the greatest economic debacle the world has ever seen, the question is, how does one recover and even get ahead in the times immediately following such a huge collapse?
There are five things that are apparent in this current market.
- Mortgage interest rates in the past number of months have never been lower.
- House prices have dropped 15-30% since the peak depending on the community and the property and it appears the bottom has been reached.
- There are lots of eager sellers out there who do not have the means to hold onto their property and need a willing buyer to bail them out.
- There are fewer buyers to compete with when looking to make an offer.
- Rental incomes are still high even though house prices have dropped. For the investor, in some cases you can even cash flow these properties and make an income.
These are five powerful reasons to look at being a buyer of property instead of sitting on the sidelines looking at what is going on.The older set has seen this before and better understand the economics of the swings in the market. The younger person may need a little more encouraging but probably not too much. They can see how fast things are changing even in just the past 4-6 months.
If inflation kicks in and starts to rise with all the “economic stimulus” money that has been flowing, what will happen to house prices and what will happen to interest rates?
From a personal perspective, since I already own my own family home I decided to purchase some rental property to take advantage of this historic buying opportunity. I purchased one property in Edmonton and one in Calgary and already the values are starting to rise. Rental incomes are still high even though the house values have dropped.
But you can also benefit if you purchase your own home. The deals on existing properties are very good and buying one of these is a sure way to get the best deals now. But even the builders have lowered their prices and many are offering incentives to get in now. Lot prices are lower and builders are anxious to get things moving again. This bodes well for buyers for at least the next 6 months.
You never want to take advantage of someone elses misery but since their circumstances are what they are, you are really helping the sellers put themselves in a better financial situation. And even if the property is not being sold for financial reasons, you can still get the best prices we have seen in years from most sellers of any kind.
The bottom line is: Those who act now will in all likelyhood see their investment in a home increase very soon and with interest rates so low, your payments will be low, your rental income high, and your long term outlook very positive.
