If you want to feel better about the market, you have to stop listening to negative people and negative news.
I have a client who has been waiting for a couple of years for the prices to drop, so she can buy a house. Now, that the prices are low, and interest rates are ridiculously low, she still thinks the prices still have a LONG, LONG way to go, before they hit rock bottom.
If you wait for the day when someone says "NOW the prices have hit rock bottom", you will wait forever.
Concentrate on what is GREAT right now:
-- lower prices
-- lots of selection
-- LOW, LOW, LOW interest rates
Rather than listen to the usual family members and friends who know everything about real estate and where the market is at, speak to a professional about your goals and how you want to achieve them (especially the goal of buying your first home).
You need to take action before the prices start going up again.
Talk to someone who will encourage you. Maybe it's your lender, maybe it's your REALTOR, maybe it's your boss ... anyone who usually encourages you.
Absolutely speak with your REALTOR. He or she will show you what's available now, and will help you get pre-approved for a mortgage. Not only will you know what you qualify for, but you can then decide what you are COMFORTABLE paying every month.
If you find a home in the neighbourhood you like, and it's right for you, and the price is flexible or below others in the area, because the sellers have to move in 3 weeks, then buy it. (Of course you have been pre-approved, you can afford it, you have a steady job, and you know you can afford this monthly payment...)
How much down-payment do you have?
Is it all in a savings account or RRSP?
Do you know for sure you can transfer it out of your RRSP?
(you can use a portion of it, tax free, to help in the purchase of your home - however, you have to make sure it's not tied up for the next 5 years).
If you don't have a down-payment, you need to start working on saving up for one - immediately.
Go to your online banking and set up a "HOUSE ACCOUNT". Set up an automatic withdrawal for the first of every month. PAY YOURSELF FIRST.
Pay off all your credit cards, starting with the ones with the highest interest rates.
Do family and friends give you money for your birthday, for Easter, for Christmas?
Make a deposit into your HOUSE ACCOUNT. Save all of it. Pretend you never had it.
Do you have any investments that you can sell? If it's the right time, sell them and put the money into the HOUSE ACCOUNT.
How quickly do you want this home? Before prices start climbing again? Is it worth getting a second job for a few months?
Are you paying rent, downtown, in a very expensive apartment? Is there enough space to share with someone for a while? Take that money (half of what you pay now) and deposit it into THE HOUSE ACCOUNT. Not enough room to share? Move to a less expensive apartment, so you can reach your dream that much quicker.
Do you go out for lunch every day?
Pack your lunch at least 4 out of 5 days, and that could add up to another $200 per month.
If you're having a designer coffee, stop it. Make your own and save the extra $10 per day.
(You can go back to designer stuff once you're in your home and it fits into your budget.)
Do you go to the movies every weekend? Do you buy a large drink and popcorn with that?
Get your friends to come over to your place instead, rent a movie, and you can make spaghetti for everyone, and someone can bring a bottle of wine and someone else can bring dessert. You can 'share' the expense between everyone - and for about $5 you can still have a night at the movies, only more comfortably and with dinner and dessert.
I could go on, but you probably want me to stop, already. :)
Cut back where you can. Make some sacrifices now, and it will pay off in the long run.
Work on a plan and stick to it.
I have been selling homes to '20-somethings' for a while, and when they put their minds to it, they could save a lot of money in a very short period of time.... and they are so happy now that they did.
Can you imagine everything that you could do, by the time you're 40 or 45, and you have your home completely paid for?
Now you're sitting on all that equity ... what can you possibly do with that?
I can give you that list later ... it's a long one too. :)
If you need additional information, don't hesitate to call.
Toronto Real Estate by Sylvie Conde, Broker
Sutton Group-Associates Realty Inc., Brokerage 416-966-0300
(Independently Owned & Operated)
sconde@sutton.com
www.sylvieconde.com
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