Important Factors to Consider before Purchasing Real Estate

There are many benefits of homeownership. It creates a level of stability in a person’s life and provides a safe environment for children to grow and learn. A home can also have several financial benefits, creating borrowing power for the homeowner and the opportunity to build wealth that can benefit people for years to come.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

The Most Important Financial Reasons Why You Should Purchase a Home

You've heard it said time and time again that real estate is a solid investment that helps to build up a retirement nest egg. So, what makes real estate a good investment for Canadians?

You're Paying For It Anyway

Everyone needs a place to live and will either have to pay rent or a mortgage. The home owner sends in a mortgage payment to pay off his principal while renters pay off the landlord's principal.

It Forces You To Save

It can be difficult saving money especially when you're trying to raise a young family. When you have a home that you're paying into you’re forced to save money every month. You have to make the payments that end up as a solid nest egg for your retirement.

Beat The Inflation Rate

For the most part, rents tend to rise at a faster pace than the inflation rate. This makes owning your own home even more attractive.

It Offers Tax Benefits

There are a variety of different tax benefits that you may be entitled to as a home owner.

It's An Available Leveraged Investment

If you don't have a lot of spare cash to invest, you aren't going to be able to go to the bank and ask to borrow money to buy stocks or bonds. If you approach a bank and ask to borrow money on a mortgage, however, you have a good chance of getting accepted as long as everything else is in place such as good credit, a solid income etc. It's hard to find any other investment opportunity that the banks will support through funding. Buying a home makes sense for any Canadian for a variety of family and social reasons. It's also the best investment that you could ever make financially.

Important Factors to Consider before Purchasing Real Estate

Right now it is an attractive time to make a real estate purchase with interest rates low and houses affordable. You'll need to make sure, however, that your own personal finances are set up first. Timing the market and your own personal financial readiness should both be in balance before starting your home shopping.

Is This The Right Time For You To Buy?

The market is certainly attractive right now with interest rates so low and houses remaining affordable in Calgary. While the market is somewhat tight in the city, if you have any problem finding the right house you can start looking in the bedroom communities just outside the city. Cochrane, Okotoks and Airdrie are just a few of the towns that offer a great selection of real estate at incredible prices.

Your own personal situation should be the next deciding factor as to whether it's the right time or not to purchase a new home. Here are some of the questions you should ask yourself to make sure that you're ready to take the plunge.

• Are you ready to take on the responsibility of home ownership?
• Do you know how much house you can afford?
• Do you have enough of a down payment set aside?
• Have you budgeted out the mortgage payments?
• Do you have enough extra money in your forecasted budget to handle home emergencies and repairs when they arise?
• Is your job stable? If something unforeseen should happen with your employment would you be able to secure another job quite easily?
• Have you factored in the cost of home insurance, utilities, taxes, association fees (if you're buying a condo) etc.?

If you feel ready to go ahead with a purchase, you'll want to take a look at your present circumstances and your future goals. Do you need to make room for a growing family? Is this the home that you're planning to retire in? Are you purchasing a new home as a stepping stone towards an upgrade in the future?

These questions will help you determine the type of home you want based on your future intentions. This is going to be, after all, one of the biggest purchases you'll ever make in your life and you'll want to go forward with complete certainty and understanding.

How to Conquer Your Fear and Overcome Homeownership Hurdles

Many Canadians are sitting on the sidelines because of all the negative news they have heard on the radio, seen on television or read in newspapers. Others may not have enough extra money to save for a down payment or have other financial difficulties, such as poor credit scores that make it difficult for them to get approved for a mortgage.

How can you overcome these hurdles and take advantage of one of the best times in recent memory to buy a home in one of many wonderful communities across Canada? How can you overcome your fear of a failing market?

• Stop listening to negative news and people. If you are waiting for "all lights to be green" then you will wait forever. You must stop every negative source of information from coming into your mind and concentrate on the positive aspect of the current market such as lower mortgage rates, lower prices and more selection.
• Read a self-help book on how to set up goals and achieve success. Every successful person that I know has had to overcome fear of failing in order to reach their goal. You need to fill your mind, body and soul with positive thoughts that keep you encouraged as you embark on your journey towards homeownership.
• Speak with your real estate agent. He or she will be able to show you many bargain deals that will make your mouth water. Imagine snatching up a beautiful home in your favourite neighbourhood which is priced twenty thousand dollars below market value because the owners have to move in eight weeks. 
• Stop listening to advice from family and friends. When the market turns back to a seller's market, the deals and the selection will quickly go away. If you find the right home, and the price is below other similar homes that are comparable then go for it.

What Type of Home Buyer Are You?

It doesn't matter if you're buying your first home or you're ready to upgrade to a new home, Calgary offers a little bit of everything. Even those downsizing to a condo can find the right type of home in the city. Here are a few tips for each type of homebuyer relocating in Calgary.

Tip for the Condo Buyer

If you're ready to downsize because all your children have moved out, you need to make sure you make the right decision. It can be hard to let go of the home you've known for quite some time, but the maintenance can be more than you can handle. Finding a place with plenty of amenities and upkeep included, can allow you to move onto the next step of your life.

Tip for Those Upgrading

Maybe your home is growing or you're looking for a larger home because you're making more money now. Upgrading is a great time in your life and getting the most out of your new home is necessary. Make sure you can handle the new payment and don't go overboard. It's also important to get as much equity out of your current home as possible.

Tip for Buying a Second Home

If moving to Calgary isn't the option you're looking for, but instead you want to own a second home in this beautiful city, you need to approach the deal in a different way. This is a luxury, so you can take your time and find the exact home you want. Make sure you get all the amenities you want and make sure you get the home you desire. Since it's a second home, you don't need to feel rushed.

Making the Decision to Buy a Home

It's okay to start small if you're new to homeownership. The best thing you can do, when you're a first-time buyer is avoid the large mortgage payment. Make sure you look at your budget and find something that fits within your budget and not just something you think you can afford.

Speak to a real estate agent if you are interested in purchasing a home in Calgary so you can set yourself up for financial benefit for years to come.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.