Buying or selling a home now may
just be the best time while you still can.
Real estate sales in Alberta are seeing a significant increase over the summer.
A combination of low-interest rates and a spike in demand.
So what are some key factors you need to know before you buy in this market?
Location, Location, Location (Community)
Real estate sales in Alberta are seeing a significant increase over the summer. A combination of low-interest rates and a spike in demand.
Buying, selling, or investing in a property is a BIG DEAL. It can be an incredible asset or a massive liability. Simply put. You need to know what you’re getting into. Let’s take a look at some of the pros and cons:
- You can customize and renovate a property to your liking
- In Edmonton purchasing a bungalow as they are cheap enough to flip and these types of properties are incredibly versatile bang for your buck that you can make money on.
- If you’re wanting a home, there’s more privacy for you and or your family. In Alberta, there’s no scarcity of land.
- Consistent payments with a fixed-rate mortgage
- You can eliminate monthly house payments once it’s paid off
- Build up your properties equity
- A mortgage payment is typically not much more than renting
- There are no restrictions on pet ownership
- You are the king/queen of your own castle
- You’ve got a growing family or you’re downsizing because the kids have grown up
- Extra costs such as repairs, taxes, insurance, etc.
- Upfront costs – down payment, home appraisal
- More difficult to move to a new location because of a long-term burden
- Landscape maintenance
- The majority of the mortgage payment goes towards interest in the first ten years
- Neighbours that you can’t get rid of
- Bad neighbourhood because its the only one you can afford
You see, for some becoming a homeowner is a dream come true. But, property ownership has its advantages and disadvantages. Let’s take a deeper dive into what we mean.
Weighing Your Options
Homeownership has always been part of the North American Dream. Because of that, many people accept owning a home as the right, even obligatory thing to do without considering the benefits and the risks.
Attractive Long-Term Investment
Appreciation represents the increase in home values over time. Real estate prices are cyclical, and homeowners shouldn’t expect the property’s value to increase drastically in the short-term. But if you stay in your home long enough, there’s a very good likelihood you will be able to sell your home for a profit because of appreciation later in the future.
In fact, buying a home is one of the best long-term investments you can make. Despite some dramatic dips, residential real estate tends to rise in value.
represents the difference between how much you still owe on your mortgage and the market price or value of your home. Home equity and appreciation may be considered together. As noted above, your home is likely to grow in market value over time. Your equity also grows as you pay down your mortgage, with less of your payment going toward interest and more toward lowering the balance on your loan.
BONUS: Home equity provides flexibility to get a loan that is tied to the amount of your home equity. Many investors follow their home equity and home appreciation simultaneously. If an investor believes their home value is greatly appreciating they may put off a home equity loan to have a better opportunity to realize the seller’s appreciation.
It’s a lot to consider. There’s more…but we won’t overwhelm you with all the finite details here. Let’s hop on a call or if you’d like to book a tour with us to experience a community (Covid-19 measures are in place) we’d be happy to guide you from there!
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With many years of experience in the London real estate field, I come fully equipped with every tool needed to succeed in selling and buying your home. I have the very best work ethic and will go above and beyond to reach a successful conclusion to every aspect of real estate.