Real estate is a cyclical market making when you buy just as influencing as where you buy to the cost of your mortgage. Once you get pre-approval for a mortgage, you have a few months of flexibility to find a place, but that could go against you.
If the market is moving quickly, you may not be able to wait until the perfect property is listed. It is recommended to start looking as soon as you get approved at what is already listed and pick out of those selections. Although, there is one time of year when prices are lowest.
The holiday season in December has the least amount of buyers looking for homes. The chance of multiple offers or much competition is low, and sellers are more inclined to be generous during this time of year. Fewer buyers also mean fewer listings though, so the selection may not be as plentiful. In a tight market, closing on a home during an unpopular time of year can save you thousands.
Currently, house prices are levelling off after years of being on the rise, and interest rates are on the rise. While prices and listings go up and down month to month, it can be difficult to say with certainty whether buying this year is better than next. It is best to buy a home now if you plan on living in it for at least 10 years. If you cannot afford your dream home now, wait until you can to buy a home. Do not purchase a house with short-term intentions as you will end up paying more substantial real estate tax and legal costs.
It is essential to consider how owning a home will affect your lifestyle. The monthly payment may seem affordable but owning a home is different from renting in that you must also factor in insurance and maintenance. It is better to wait until these expenses are more comfortable to take on.
If you are sure about affording a home and plan on staying in it for more than a decade, then a sizeable downpayment is essential. You should put at least 20% down so that you can eliminate the need for CMHC coverage and a large down payment forces you to save aggressively. An aggressive savings plan is good practice for your future mortgage. Do not feel like you must own a home for financial reasons. Buy a house because it will make you happy and continue saving until you can put at least 20% down on a place you see yourself owning for at least 10 years.
The best time of year to buy is in the winter, but if you missed this opportunity, there is no need to fret. It is more important to be sure you can take on the expenses and responsibility of home ownership. Just as it is impossible to time the stock market, it is impossible to know for sure if prices are higher or lower than they will be next year. An experienced real estate agent can help you navigate this tumultuous market and find a home that works for you.
Do you know the three most decisive factors for choosing a home? Contrary to what most home buyers believe, the answer is location, location and location. This is what experienced real estate agents believe. The primary reason for this is that your house can be upgraded to your tastes but what remains unchanged over the years is the location.
Why Home Location is Important
- Lifestyle Comforts: It is the location of your home that decides commuting ease, proximity to convenience stores, quality of your neighbourhood, schools, hospitals and social life. All of these add up to give you the lifestyle of your dreams. Even if you pay extra for a coveted location, in the long run it may turn out to be a better bargain. Where you live decides everything.
- Higher Home Resale Value: A home in a great location makes a better investment. There is every chance of higher returns while selling in the future. A smaller home in a convenient location will earn you more money than a bigger home in an inconvenient location. The demand increases over time with greater development.
The question is, how do you choose the best location for yourself? Popular real estate agent in the Vancouver Area, Cherry Yeung explains better.
How to Determine the Best Location
Geography: Start with assessing the geography of your location. Is the home located on a hilly area or flat land? Is it easy to get there or hard for guests to locate? Are you prepared for a cooler home on higher ground? Does it have adequate drainage facilities during heavy rain? Is it near the woods, near the sea or located in the heart of town? Are you prepared for wild animals invading your yard if it’s located near the woods? Geography is a factor you can’t overlook.
Urban, Suburban or Rural: Are you a city lover or a loner at heart? Would you like to be located near all amenities and conveniences or prefer to be away from it all? Do you like to spend your weekends in the mall or away from shopping centres? Do you need to be close to healthcare centres, grocery stores and most importantly, your workplace or are you willing to commute long distances? Weigh the odds carefully before making the decision.
Safety and Security: This should be a prime concern, especially if you have children or ailing parents with you. Homes in high crime or questionable areas are usually cheaper than those in safer neighbourhoods. Should you compromise on home safety for a few extra dollars? Will you be able to find a buyer for your home if it’s located in an unsafe neighbourhood?
Quality of Schools: Considering a good school district is important whether you have children or not. A premium school attracts families who place importance on quality education. Consequently, homes in the area are usually more expensive. The school district directly impacts the price of a home and conveniences in that area such as public transport, community centre and leisure activities. If you are dependent on buses, cabs or trains, you may want to keep that factor on top of your mind.
Commuting Ease: Commuting distance and proximity to the workplace can affect your quality of life. Long hours of commuting time can tire you out, increase stress and reduce your interest in your new home. Do you enjoy driving or leaving your home earlier to reach your workplace on time? Would you prefer to be located closer to your job area? On the other hand, homes in the heart of town may be more expensive and compact than homes in the suburbs.
Contact Cherry Yeung, Personal Real Estate Corporation
When it’s time to buy a home, contact Cherry Yeung to make location hunting easier. With years of experience in the Vancouver area, she knows the do’s and don’ts of buying or selling a home. Get in touch today and get started!