The Province has published a list of top tips from financial professionals, most of these are the handy standards like diversify, keep an eye on interest rates, etc. There is one stand-out hot real estate tip from Carey Ellingson, a Scotiabank branch manager in Sherwood Park, Alta.: BUY NOW!
Ellingson says the new mortgage options of zero down payment and amortization periods up to 35 years can help first-timers to buy a home before prices rise out of reach. He expects real-estate prices in some provinces to rise further. If you are a borderline buyer today, “the longer you wait, the less opportunity you will have,” Ellingson says. “Take the leap of faith” and buy while you can.
In some provinces price may rise further! You can take that to the bank, so buy now before you and everyone else is priced out forever. Certainly don’t waste your time trying to save up a down payment!
I’m guessing once we reach the ‘price out’ stage all home owners will be billionaires and there will be no more buying and selling of houses? First we sell to locals, then maybe Americans (as long as their economy doesn’t take a nose-dive) and then to countries further afield, perhaps even buyers from other planets! The Japanese might have an advantage here with bold 60 year mortgage terms.
Now some of you ‘sceptics’ will think that a bank representative would encourage ‘zero down & 35 year terms’ simply because it means several hundred thousand dollars more in profit from each customer. This is simply not true!
A long amortization period can enable low monthly payments initially. But as your income rises, Ellingson advises you to “pay it off early” and save interest costs.
His tip doesn’t advise on what to do if your income drops or sees an interruption in the next 35 years, but if you’re bold and brave enough to buy in Vancouver right now I’m sure you will be able to see your way through any adversity.