As people grow older, they face critical decisions regarding their homes. Should they downsize to fund their retirement, or stay in their long time home? Trends in the Alberta residential real estate market along with personal preference are impacting the decisions baby boomers are making with regard to their homes.
Purchasing a first home can be overwhelming for many people. Even though Alberta real estate markets are not as competitive as other parts of Canada, hidden costs and uncomfortable surprises can greet those who do not carefully research the process. Here are a few things all first-time home buyers should consider doing in order to land the right residential real estate.
The real estate market and even the process of buying a home changes year to year. From laws governing the purchase of residential real estate to housing costs to mortgages and interest rates, there are many things Alberta homebuyers should consider when buying a house in 2018. Here are a few of the top things current buyers should think about when it comes to residential real estate.
With so many online tools available today, an increasing number buyers and sellers are entering the private real estate market. Purchasing or selling residential real estate without needing to pay commissions to an agent or brokerage is an enticing prospect for many. While it can save people money, doing thorough research and protecting one's own interests is critical when undergoing a private real estate transaction in Alberta.
Many parents today are gifting money to their children to help with their first down payment. While this can be incredibly helpful for some young people looking to purchase residential real estate in Alberta, others who are not ready for home ownership might find this "gift" to be a burden. If a young person ends up with a home that he or she cannot comfortably afford to pay off, other financial priorities could suffer due to the mountain of mortgage debt.
Before buying a home, it is important that potential buyers think carefully about their financial situation. Alberta home buyers should consider their job security, savings and comfort within a budget before deciding to jump into the residential real estate market. Those who do have this financial security may find that purchasing a home is their best option with increasing rent costs.
Last week, we discussed some basics about shopping for a mortgage. After a lender pre-approves you for a mortgage, you must prove to the lender that you can repay the loan amount. The lender will calculate your total monthly housing costs and your total debt load. It will then calculate your gross debt service ratio and your total debt service ratio (more about these below). If these calculations show that you can pay your housing costs and your additional debts, you will probably get your mortgage.
Buying a house is the biggest investment most people will make. Getting the money to buy the house will be your greatest challenge. Borrowing the money is the only option for most people. That means obtaining a mortgage: a loan in which the lender can seize the house and sell it to pay off the loan if you cannot meet the mortgage payments.
Moving into a new home is both an exciting and a stressful time. You may have a long to-do list, family and friends helping you move, as well as paperwork to review from your bank, lawyers and broker.
The process of purchasing a home is both exciting and stressful. For well-prepared residential real estate buyers, the hope is that the everything goes as smoothly as possible and that come closing day, they can finally breathe easy.