Five Great Things About Home Ownership

If you’ve been on the fence about homeownership, now is the time to take a leap! Don’t let the negative press deter you from one of life’s greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord’s pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today’s market.

2. Relationships. Renters tend to see their neighbours come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbours stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability. Well, as long as you have a fixed-rate term on your mortgage it’s predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you’ll need to pay for the gutters to be cleaned, and so on.

4. Ownership. Okay, this is a given. Homeownership means you “own” your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart’s desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals. It’s a great time to buy. Interest rates are at historic lows. We’re talking 4.0 percent instead of 6.0 or higher. This means big savings for today’s buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

There are lots of great expanding communities and new developments cropping up in the Fort McMurray real estate market. Learn more about living in Fort McMurray communities before you start your house hunt, and you’ll be ahead of the game when buying Fort McMurray homes.

Overcoming Homebuying Fears

Buying a home may seem like a scary prospect, especially if it’s your very first time getting a mortgage and buying property. There are lots of unknown words and terms being thrown around, and it involves significantly more money than you’ve probably ever spent before. And there’s a permanence about buying a home!

With good research it’s easy to gain a much better understanding of what’s involved in owning a home, and what the home buying process is like so you can approach it confidently, without feeling overwhelmed. Overcome your fears by knowing what to expect! Some people who are ideal candidates to purchase their own home let their fears keep them from investing in real estate. This is understandable, but not necessary! Whether you have been renting for several years and are a first time home buyer or you already own a home and want to understand the process better to make things go smoother the next time, it’s perfectly okay to feel a little nervous about the home buying process.

A home is probably the single biggest purchase you’ll ever make in your life. Paying for it will likely take 20 or 30 years, so it’s important to approach the process respectfully. But don’t let fear get the better of you! The benefits of owning a home far outweigh any anxiety you might have.

Common Fears About Buying a Home

What if my mortgage application is denied?

This is a fair thing to be afraid of, but the stats say that over 85% of mortgage applications are approved, so there’s a very good chance you will be one of them! Banks are in the business of lending money, and even with the recent dip in the economy, making mortgage money available for people just like you is their job.

If you have had credit problems in the past and are worried they will against you, you might be wrong about this too. Even if you have filed for bankruptcy, home ownership can still be a reasonable and attainable goal. Of course, it’s wise not to go house hunting until your financial situation is steady, but once you’re financials are in order home ownership is within your reach, no matter what your past.

I’m worried about the economy.

With all the recent strife in the economy, this is a completely reasonable fear. What if there is another recession? Media and anti-administration critics continually forecast total economic collapse, but this hasn’t happened yet and no matter how bad times have been, no matter how the stock market wobbles, homes continue to be sold and real estate continues to appreciate in value over the long term.

Remember that homes are not subject to the high sensitivity that short-term investments like stocks are. They do react to the overall economic climate — sales prices will always rise and fall — but not as quickly or radically as stocks.

Keeping an eye on the economy is a good idea, but mostly because bad times often present excellent home buying opportunities. But don’t let periodic downturns alarm you into thinking it’s all going to tumble down, taking you and your home with it. If you buy wisely, your investment will weather the natural ebbs and flows of the economy of any country.

Investing in Edmonton real estate and buying an Edmonton home is a great idea, and the Alberta economy continues to grow. To keep an eye on the Edmonton market, read a regularly updated Edmonton real estate blog.