When Is The Best Time To Buy?

What is happening to house prices? What is happening to interest rates? Both of these questions are asking the same thing; when is the best time to buy? Unfortunately, this question is appropriate for purchasing a property for strictly investment purposes but is not as critical when buying your home. The main reason is once you enter homeownership most people will be homeowners for over 50 years, whether it is the same home or different homes it is still your home. Yes your home is an investment, but we have to start thinking more long term instead of wondering how much the value will increase or decrease over the next six months. Even if your home increases in value in six months by $10,000 what does that do? If you sell, most likely the next home you buy will have also increased by the same amount. In addition, after you sell if you decide to wait because you feel house values are coming down in the near future, where are you going to live until the time comes when you purchase a home again? You can rent but the money you saved will quickly deplete with rent and other costs. Regardless if it is your first home or you sell and buy again, you must remember interest rates may go up or down during this waiting period which can also impact you overall cost.

So again, when is the best time to buy? The best time to buy is when you are ready and can afford it (the sooner the better). Again we must start thinking long term (25 plus years) instead of thinking what will happen in 6 months. Trying to time the market ups and downs is virtually impossible due to the multiple variables that come into play such as home prices, mortgage rates, and the other variables that affect the home prices and mortgage interest rates. This means that if you are just looking at the home prices and not taking into account other factors such as interest rates, you may be losing more than you think. If interest rates are increasing, the savings on the purchase price can be easily offset with the increased interest costs.

If you are truly looking to save money make sure you are making accelerated bi-weekly mortgage payments and take advantage of your prepayment privileges. By using these privileges you will be paying off your mortgage faster which can save you tens or even hundreds of thousands of dollars over the life of the mortgage. With accelerated bi-weekly mortgage payments alone this will add up to more savings then trying to time the market.

In summary whether you are purchasing your first home or thinking of upgrading the best time to buy is when you are ready and can afford it. Please contact us today as we are happy to help you with all your mortgage needs now and in the future.

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Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com

Sincerely,

Betty Saskiw, AMP
Mortgage Associate

&

Kevin Saskiw, CFA
Mortgage Assistant