It comes as no surprise to anyone that homes for sale in Vancouver have reached record heights. According to recent analysis, the affordability index of the city is likewise at record highs. What this means essentially is that the average cost of a home in the area is ten times the median income.
While homeownership in the US has undergone a major detour due to the subprime mortgage crisis, Canada was able to avoid the worst of this debacle. However, some are still asking if home ownership is really all its cracked up to be north of the border.
The US housing crisis came about because of a lack of regulation in the housing market, allowing financial institutions to lend money to those without assets, incomes or employment. The massive defaults on mortgages and the toxic debt which was being bought and sold, created a world-wide recession. This is why many people have turned over to an apartment for rent instead.
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Canada, luckily, avoided the worst of the housing crash because regulations were tighter and banks weren’t so keen to lend to those ill equipped to afford it. However, with interest rates at record lows, most Canadians are still pretty heavily leveraged.
In Canada, moreover, there is not a real advantage in terms of taxation for home ownership. While capital gains tax allows exemptions on the sale of one’s principle residence, this is pretty skimpy compared to the US system. Visit https://onqfinancial.com/home-loans/usda-home-loans/ for more info.
Though, home ownership is looked at differently in Canada than the US, it is nevertheless true that most Canadians hope to own a home at some point their lives. But in some areas, such as metro Vancouver, this is more of a pipedream than a reality.
Owning is seen as preferable to renting on many accounts. Homeowners are seen to provide more stability to the community and to be more involved, click here for more information about getting a loan approved online for your house. Moreover, there is a tendency to believe that homeowners take better care of their properties than renters, being as they are invested in its upkeep.
Whatever the truth of the matter, homeownership is a widespread goal for Canadians. But is it in fact a better investment than simply renting?
When it comes to this question, obviously location and housing costs play a crucial role in the answer. Recently, Forbes magazine rated Vancouver’s real estate market as the sixth most overpriced in the world.
This calculation was done by looking at the annualized rate of return on a real estate investment (this itself based on rental income) and overturned this figure to show the price-to-earnings ratio.
According to realtors and real estate experts, the cost of mortgage payments, alongside property taxes, utilities and the like for a detached Vancouver home amounted to a whopping ninety-two percent of a normal family’s monthly income.
Most people only buy or sell a property a few times in their lives. Purchasing real estate is one of the biggest financial and emotional commitments you will make, so it is crucial to be well advised by an appropriately experienced and qualified professional. Once you have your property one of the first things you will want to do is schedule and establish utilities. Having basic utilities up and running before you move in is nice if you can organize it that way. In some cases, like when contacting a Cable TV Supplier, you will find that they can provide additional services you may need in conjunction, like an internet connection. For most of these you will need to be there to let the technician in and answer his questions on how and where to install. Hopefully you can do this without everyone else moving in first.
Whether you are buying an investment rental property, or are looking for your first home, using a real estate agent will make your property search more efficient and hassle-free. An agent will help with listing and marketing to increase buyer inquiry, saving you the lengthy time that a property search often takes. Before beginning your property search for licensed Best Real Estate Agents in Auckland, it’s vital that you find the best agent for you. The team here at Property Corner have put together a few helpful tips to help you select the best agents in Auckland with ease. We also offer a range of other useful services and advice for a smoother and enjoyable property search.
Given this and the Forbes findings, whether it is best to buy in the Vancouver real estate market or to look for properties for rent is a very good question. How much should rent be? As low interest rates, international investment and other factors have led to record prices in the Vancouver market, knowing whether it pays to buy is certainly an important consideration.
While every buyer will have a different set of factors to consider, in general the research shows that though the ratio of rent to home buying costs may suggest that buying a home or condo in Vancouver is overpriced in relation to rents, it is still a better investment over the long term.
Though some have called the Vancouver real estate market stretched, others going further calling it a bubble, TD Bank officials believe that houses will still be worth more in 2013 than they were in 2010.
Though some are saying that Vancouver housing prices will decline by fourteen percent or more come next summer, the truth of the matter is that most home buyers will still be making a sound investment.
Looking online, one can find a variety of calculators in which you can input your information and get some insight into just what is best for your family when it comes to renting or buying. For most people though, buying is seen as the ultimate goal not as a mere investment, but in order to have a place to call home and to raise their family. You can be in US and buy a home in Canada by contacting the experts at Georgia house buying company.
This being the case, most people hope to get into the market at some point in their lives. Homes for sale in Vancouver can be expensive, but for many it is well worth the investment. You can always talk through your best move with your realtor from flanaganrealtor.com before making a decision on what is best for you and your family.