5 Points to Keep In Mind While Buying Home in Canada
Posted On November 3, 2020
Buying your first home in Canada is a matter of the expense. Looking at the new numbers from the Canadian Real Estate Association (CREA) for each month, it can be stated that owning a home is becoming more and more expensive with time. This hike in pricing has confused many buyers whether they should continue with their decision to buy a home. As the decision making process of everyone differs from another, here are few points suggested by Save Max, to consider while buying your first home in Canada.
DON’T BE HASTY AS THE MARKET RATES MAY DOWNTURN There are a lot of people who bought homes in Canada in the previous times and are getting profits from rising property prices. But home prices sometimes fall, says Paul Anglin, a real estate professor from the University of Guelph. “Most people get excited about the rising part,” he says. “They forget about the falling part.”
Sometimes prices of the homes do fall and one should consider enough time before buying a home in hurry investing more money unnecessarily. Market prices in Canada have shown a downfall in past decade. Both The Bank of Canada and Moody’s have informed recently that a crash could happen again in Canada, especially if the economy slows down.
MARKETS VARY ACCORDINGLY WITH DIFFERENT GEOGRAPHICAL AREAS As per data recorded by CREA, housing markets differ considerably city by city. Prices have increased 9.5% year-over-year in Calgary, 8.3% in the Greater Toronto Area and 6% in Greater Vancouver. Nevertheless, they were constant in Saskatoon, Ottawa, Greater Montreal and Greater Moncton and went down 3.4% in Regina.
Prices are increasing unbelievable in Toronto and Vancouver because most of people prefer to move to these cities and space is limited. On the opposite side, Calgary has attained price rise because of the success of local oil extraction economy. These fluctuations in pricing depending on the location and city should be taken in account while buying first home in Canada.
TRANSIT LINES MAY STEP UP MONETARY WORTH To live nearer to the areas where there is satisfactorily fast conveyance options prove to be comfortable for the ones living there. It can also increase the price of the property as most people prefer least possible drives.
“You want to be in a place that is convenient — or that will be convenient,” says Anglin. One should not only consider existing transit lines but also consider the areas where offered transit lines could be made. For example, you can think of SmartTrack in Toronto or the Broadway Subway proposal in Vancouver.
“But you also need to figure out how much inconvenience there will be during construction phase,” says Anglin. Every benefit comes up with a cost. While buying A home in Canada, buyers should understand that if they are buying home near airport or within the market, then they would have to bear all the disturbance and pollution from very close.
PURCHASING AN UNBUILT HOME MAY PROVE TO BE HAZARDOUS People think that it is beneficial and smart move to buy a pre-constructed home because they just have to renovate it to a particular extent to make it new. But it may prove to be impulsive move.
“If you’re buying from a plan, you don’t know what will actually be there,” says Anglin. For example, those who buy a condo from a plan, do not know who else will be in the building, he says.
Some apartments include many renters who can disturb and distract the owner of the house. “It’s also worth keeping in mind that condo fees are more predictable after a building has been up and running for a few years”, says Anglin. In a nutshell, it can be stated that, rather than giving importance to discounted price, this factor should be considered.
DECIDE THE TIME DURATION, YOU’RE GOING TO STAY It’s a very important matter to think of, while buying home in Canada. Inherent buyers require to conclude that for how long they intent to stay at the same home. In case they want to stay for long, then they won’t have to sell the place emphatically when price would fall.
“If you plan to be in some place for a year, maybe you should be renting,” says Anglin.
“If you plan to be there for 10 years,” he says, “the monthly wiggles on the average price probably don’t matter, because 10 years from now, economic conditions will be very different.”