1. Next Year’s Prices Now!
If you can get next year’s prices now, why wait? Some Calgarians have over extended themselves, numerous home builders have too much inventory and those unfortunate that have been laid off may need to sell their property. This presents an opportunity to buy real estate at next year’s price, today.
2. Near Record Low Interest Rates
Save your total interest payments! Take advantage of being able to pay down the principle faster and reduce the amount of interest paid on your total mortgage. Look at getting a portable mortgage in case you plan on moving to another property, this lets you port your current mortgage to your next property.
Mortgages work by front end loading the payments with interest, and gradually over time you start to pay more of your principle down. If you don’t have a portable mortgage and you move, then you start paying the new mortgage that is front end loaded with interest and never build equity. Whereas if you have a portable mortgage and you move, you can keep going with your current payments and start to pay down your principle faster.
3. More Available Choices
As per December 1st 2015, new listings are on the rise, 5% above the 10 year average and monthly sales are 20% below our 10 year average. Take advantage of the increased inventory in Calgary. More inventory means you might be able to negotiate the price down a little more knowing there is a similar piece of property you can get for a lower price.
4. If The Right Property Comes On The Market
If you have been waiting for the perfect home to come on the market then make the purchase. Price is only one piece of the puzzle and if a property meets all your criteria, then some, then make the purchase. You never know when another perfect place is going to come around next. Having said that, new real estate is just around the corner!
If you have a long term time horizon – The ups and downs in real estate value, in any asset class, for that matter, has the risks smoothed out if you plan on holding the asset for the long term. Real estate should be looked at as a long term investment. If you have a proverbial nap for 15 years and wake up, there is a good chance, historically speaking, that the value in your property will have increased as the highs and lows in the market would have smoothed out.
I hope the above 4 reasons to buy real estate right now in Calgary were helpful. Real estate is my passion and my full time job. If I can be of any assistance with this important decision of yours then please let me know. Big or small I do it all, Kyle Stone. Call (403) 669-5390