Is the right time for us to purchase Real Estate?
The question of when it is the right time to purchase real estate is always a very important family decision. For millennials, homeownership in Canada is approximately 50 percent. In contrast, 55 percent of their parents currently own their own homes. While millennials have lower ownership rates, it is expected that the numbers will increase this year. The average millennials are married at the age of 29, and most are in their early thirties. Many have been married for two to three years when they start a family, and then they start looking for a home to purchase.
Many people now realize that this is an excellent time to invest in real estate. Sadly, the current outbreak of the coronavirus, the uncertainty of the world’s stock markets and record low interest rates have made this possible.
Before you decide to purchase real estate, always consider the available types:
- Residential, which can be new construction or resale homes
- Commercial; shopping centers, malls and office buildings, and multi-family residential
- Industrial; manufacturing and warehouses
- Land: that can be developed for residential or commercial purposes
Why Buy Real Estate Now?
Real estate has always been a very safe investment in Canada. Why should I be buying now?
- High rents will continue
- The recent wild ride on the stock market has caused many people to lose considerable amounts of their savings
- Very low-interest rates, that will continue
- Real estate is an effective hedge against inflation
- The Ottawa real estate market is a very safe investment and will appreciate in value
- Current real estate price increases are expected to continue
- Few families will have a defined pension, and the equity will be available to support them in retirement
- Purchasing a rental property is an effective way of generating passive income that will build in the future
- Real estate should be part of your overall strategy to increase your wealth
- Increased demand for multigenerational type homes
- Use equity in your home to purchase investment property
How can we Pay?
This may be the time for family meetings to examine the various options for gaining the funds for a down payment and living costs. There several ways to gather the necessary funds for the down payment. Your mortgage will cover the rest of the price.
- Use some or all of your Tax-Free Savings Account. There is tax to pay on the money you withdraw
- The Home Buyers’ Plan is a program that allows you to withdraw money from your RRSPs to buy or build a qualifying home
- The First-Time Home Buyer Incentive helps first-time homebuyers without adding to their financial burden
- Using savings and investment funds from your savings
- Short-term savings and investment options can include savings accounts and short-term Guaranteed Investment Certificates
- Check your credit report before you apply for a mortgage
- Shop around for a mortgage, compare rates and work with your financial advisor to consider several options
- Consult the Mortgage Professionals Canada https://mortgageproscan.ca for a list of local certified mortgage brokers
It is the Right Time to Purchase Real Estate!
With all the uncertainty in the world, it is a perfect time to purchase real estate in Ottawa. The best way to protect you and your family’s future is to acquire real estate in our community. Ottawa is a safe place to buy your property. It will be a secure investment that will increase in value. Instead of paying rent every month and not gaining any equity, you will be a homeowner and will be able to see your investment grow.
Details at of First-Time Home Buyer Incentive and other very helpful information, please check out Canadian Mortgage and Housing Corporation before you meet with your broker or lender https://www.cmhc-schl.gc.ca