If you have followed the housing market in North America lately it has become obvious that housing prices are out of control. Some popular cities have seen the prices of homes for sale in the area increased 20% – 40% in the last year or two. Not only has the price on houses listed for sale gone way up, but the monthly rental prices are too high for people to afford on modest incomes. Some analytics companies claim that without raising rates this cycle will just perpetuate into the future, until starter homes in any given city, will be unaffordable for the masses.
So, Should I Buy Real Estate Now, or Wait it Out?
This really depends on your specific situation and since everyone’s different, there isn’t a right or wrong answer here. For example, let’s say that you have been renting an apartment and the landlord has informed you that the rent will be going up and that they want you to sign a new lease if you wish to stay?
Should you pay the inflated rent rates, or purchase a property?
Now, this all depends on whether your able to obtain a home loan, through a licensed Mortgage Broker Company, or not.
Either way, speaking with a professional mortgage broker can clear up any confusion you might have about interest rates, and home loan products available. Not to mention that they can guide you thought he best options for your specific situation and lifestyle needs.
Consider that paying rent means that you’re losing that entire amount each month, without any ROI, other than having somewhere to stay, temporarily. Buying real estate will ensure that a portion of your monthly payment will be paying off the principal balance of the properties value, getting you closer to full ownership with each payment.
Lastly, buying a home means that your able to take advantage of the market trends and hopefully your property will increase in value overtime. This coupled with making monthly mortgage payments will provide you with ROI overtime!
How to Choose the Type of Property to Purchase?
If you were barely able to afford the quote that you got for a lower priced single-family home before the rate hike, don’t worry because you still have options.
Often the price for single family homes rises rapidly and can force you to rethink your budget. If that’s the case then you should consider townhouses, or even condos for sale. The price for townhomes is often much less than standalone homes. The same goes for condos too!
Just beware of high monthly Homeowner Association Fees (HOA) are charged in townhome and condo communities. Although you will receive befits from this fee like use of the resident only amenities, guard gates if applicable, swimming pools, walking trails and others. Plus, these fees typically cover the maintenance of common grounds like community grass, shrubs and more.
If you’re thinking about buying a home in Q2 of 2022, its highly recommended that you consult a local, licensed real estate agent who can help you understand today’s housing market and navigate it successfully too.
There are some hurdles to hop over and some challenges to face, but with the right attitude and professional help, anyone can purchase a home and save thousands of dollars per year they would typically throw away on paying rent.
There are tons of different home loans available today that can help make home ownership a reality in your life as well. Just do your own research first to make sure that you find the best place to live, at the lowest possible price before rates go up again, which they probably will soon.