Top 10 Questions Buyers Ask: #9

19 05 2011

9. When’s the best time to buy?

I often get asked if the markets going up, are they going down, when’s the best time to buy? It’s a complex question to answer because it depends on what your goals and objectives are as a home buyer. Would it be for yourself to live or is it for investment purposes? If you’re buying for yourself to live, you want to see what your price range would be, how much you can afford, and for the style of dwelling you are looking at, do you have many options. With today’s market, there’s a lot of activity and my clients have been in a lot of multiple offer/bidding war situations which they may not be able to compete considering their price range. If you’re buying your primary residence, you should go see a variety of places to get the idea of what you want, need, and willing to compromise in terms of building, layout, location, amenities, etc. For a lot of first time home buyers, they don’t really know what’s available out in the market and what they can get for their price range. Depending on their reason/motivation for moving/buying and whether it is time sensitive, we know that in the long term, real estate is a sound investment. If you’re buying to live in for the next year or two, it might not be the best idea for you to buy because you want to come out not losing money. For investors, it’s a little more down to the numbers and whether you’re going to have positive cash flow or if the appreciation rate is worth having your money tied up for that length of time.

When you’re buying, depending on your down payment, interest rates, maintenance fees (if applicable), real estate fees, appreciation rates, and real estate goals, etc. you should use a Rent Vs. Buy calculator to see how long you have to live in the house to break even. The market goes into cycles with its sales. Activity flood the market in the Spring and Fall and that’s when most buyers and sellers enter the market at those times. If you’re thinking of Buying, looking in the slower times in the Summer and Winter might be beneficial with less competition and have sellers more receptive to your offer. If buyers know they have to buy but don’t know when, we know that in the long run, the history of prices in the last 50 years have gone up. There may have been peaks and valleys, but overall in the long term, real estate has had the most consistent growth.

History of Selling Price in GTA

Question for buyers is: When do YOU want to move-in by?

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