Homes - Interest Rates

[Speed_RaSiR]

As the rates are at an all time low do you think now is a good time to buy real estate? I can't decide because, if the rates are low but the homes are expensive, when is the right time to buy?

Please only usefull replies, I dont want guesses. Does anyone have any experience with Real Estate?

[RC-Cola]

With Alberta and especially Calgary continuing it's growth now is a good time to buy property. Predictions in the markets is that with the increasing strength in our dollar and the Canada's position in the global economy that our interest rates will continue to increase over the next two to three years. If you have enough for a down payment you should buy ASAP.

[trendkill]

calgary home prices will continue to get higher. so yea, if u have the $$$ now u beter be getting ya ass in gear

[benyl]

Originally posted by RC-Cola
With Alberta and especially Calgary continuing it's growth now is a good time to buy property. Predictions in the markets is that with the increasing strength in our dollar and the Canada's position in the global economy that our interest rates will continue to increase over the next two to three years. If you have enough for a down payment you should buy ASAP.

Um no. There was a report out last week which stated that interest rates are likely to go before year end because the economy is in fact stagnant. The dollar took a near 1 cent blow.

It is always a good time to buy if you can afford the payments. Real Estate will always appreciate or stay the same. The only time it goes down is if you have some sort of contamination or a new road is built in front of your house. Even then, over time, it will appreciate.

[benyl]

although...

http://www.investorcanada.com/interv...contentID=1456

[Khyron]

We bought a new house in Sept - we were going to wait, but the price was going up 1000+ bucks every month. Hell, our house went up 15,000 in value before it was even finished. Get in on it as soon as you can - you'll always pay more than the same house last year- but it's way less than it will be next year...

(Just don't forget utilities, property taxes, etc when figuring out what monthly payment you can afford).

Khyron

[B17a]

Originally posted by RC-Cola
With Alberta and especially Calgary continuing it's growth now is a good time to buy property. Predictions in the markets is that with the increasing strength in our dollar and the Canada's position in the global economy that our interest rates will continue to increase over the next two to three years. If you have enough for a down payment you should buy ASAP.

I'm going to have to disagree, I think our economy has plateaued right now, our economy just hasn't been growing the past few months as expected. Commodity prices have levelled out, unemployment has levelled out, growth in general has levelled out. The main reason for the interest rate hikes over the past 12 months have been to pace inflation, that itself seems to be tappering off, I think a good chunk of the inflation numbers were due to high commodity (read: gas prices in the winter). Now that demand has slowed (for natural gas since its summer), people are realizing that, hey, the economy isn't booming that much, auto sector is in the toilet, manufacturing is blah, oil and gas is quiet until the winter...... On top of that, as much as people tout a strong Cdn dollar, its not that great other than for us travelling, a good part of our economy is based on exports to the US, and paying expenses in Cdn and collecting a lower USD isn't such a good proposition. You will see the Cdn economy flattening in the short run and interest rates holding steady. That's my call!

[cocoabrova]

Interest rates are pretty low, compared to when we bought almost 2yrs. ago..... With the prices of new homes going up, it would make sense to buy right now. As for a down payment, first-time homebuyers are allowed to put down a max. of 5% down on a new home, and are also able to use RRSP's towards the down payment. The model we bought has gone up approx. $35K in a year and 8 mths., not including the other upgrades we have

[B17a]

Originally posted by cocoabrova
Interest rates are pretty low, compared to when we bought almost 2yrs. ago..... With the prices of new homes going up, it would make sense to buy right now. As for a down payment, first-time homebuyers are allowed to put down a max. of 5% down on a new home, and are also able to use RRSP's towards the down payment. The model we bought has gone up approx. $35K in a year and 8 mths., not including the other upgrades we have

I've seen a nice bump too in my place, good if I were selling, bad in that taxes are higher. So you end up house rich but cash poor!

[cocoabrova]

Originally posted by B17a


I've seen a nice bump too in my place, good if I were selling, bad in that taxes are higher.

Yeah, you would tend to think that property taxes would be relative to rising house/land prices.......But we are actually paying slightly less for it now, than when we FIRST bought

[FiveFreshFish]

No time like the present.

[TypeRgurl]

I just bought a house last month, I advise to find one now before the interest rates go up...they are at an incredible low right now and they are going to go up to about 8-10% so get going buddy or you'll regret it

[FiveFreshFish]

Originally posted by TypeRgurl
...they are going to go up to about 8-10%...

We won't see jumps to those levels in the economic state we're in now.

[ZorroAMG]

Originally posted by B17a


I'm going to have to disagree, I think our economy has plateaued right now, our economy just hasn't been growing the past few months as expected.

As a mortgage specialist with the Royal Bank, I am going to disagree with you. There is continual growth in Alberta namely Calgary and Edmonton and although it is not at the same rate as the last 2 years, it is still growing significantly. There are still 800 people moving to Calgary/ month, hardly making that a stagnant market.... The interest rates have been dropping since end of April and the economist predictions of increased rates by year end are right on track. The decrease recently is a mere dip in an increasing market.

I would definitely be buying right now and locking in for 3-5 yrs is a smart move for us younger investors. And for the record, (here comes a shameless plug ) i am giving ultra-low rates right now for 3,4,5 and 7 yr rates. PM me if you are serious about buying and want a great rate from someone who isn't old and crusty and who actually cares about your home investment. I know the Real Estate market very well and have been in the business for 5 yrs.

And NO THE RATES ARE NOT GOING TO 8-10%.

[E36M3]

I'd start to re-evaluate what the purpose of a home is. If you are going to be in a home long term, then it is always a great time to buy. I would recommend waiting until you can afford the house that you will be happy in for the rest of your life, instead of taking the traditional route of buying a 'starter' home. Closing costs, moving and real estate agent fees (if you decide to go with one) are incredibly expensive, and it is a good idea to minimize the number of times you move.

Also, remember that your home is a *liability*. Don't buy more than you can afford, and try to remember all the hidden costs. Home owners insurance, maintainence, closing costs, real estate fees, etc. are all killer. Property taxes are also another big expense that some people overlook.

Having said all that, owning a home is great.. but a lot of work. Make sure that the house you choose is compatible with your lifestyle.

I lucked out and bought at a good time, and my house has appreciated 20% in the last year.. that isn't in Calgary though.

I think that Calgary is a great market, and definitely undervalued. If you are in it for the long term, you could do worse things with your money.

From a financial planning perspective, I would make sure that you have a 3 month emergency fund + down payment + closing costs available, and that your monthly mortgage + PMI (if applicable) + property taxes + estimated maintenance fees are compatible with your income.

Originally posted by Speed_RaSiR
As the rates are at an all time low do you think now is a good time to buy real estate? I can't decide because, if the rates are low but the homes are expensive, when is the right time to buy?

Please only usefull replies, I dont want guesses. Does anyone have any experience with Real Estate?

[04blackMAX]

dood, buy asap, my wife and i bought a new place in november, it will be done in august, the house has made about 16k already, but asap, cause prices keep going up, as far as mortage payments, hella lot cheaper then rent man, on about 200k mortage, your looking about 1150 a month plus your property taxes!!

good luck

look in the SE, growing so fast

[5gluder]

It's a great time to buy, i actually bought a house today!!!

[04blackMAX]

really, where did you buy man??

[5gluder]

Bought a house in Falconridge, as a rental property

[max_boost]

Originally posted by 5gluder
Bought a house in Falconridge, as a rental property

Are you still living at home?

Cause that is what I am doing right now, extra cash and still no expenses! Well, the car