We are often asked if this is a good time to buy a home/property. Some clients are concerned that prices may fall down the road, while others are convinced that property prices will go up.
Property prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have fluctuated, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, a one point rise in interest rates could cost tens of thousands of dollars over the life of your mortgage!
While a home or property is a major investment, it is also the center of your personal life. It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.” To that end, it may be more important to lock in today’s relatively low interest rates while they are still available.
Please give us a call if we can be of any assistance in determining how much home or property you can afford in today’s market.