(NC)—Housing prices and interest rates are at historic lows.
The real estate market is stabilizing. It's a buyer's market – so buy. Just be sure to think with your head and not with your heart when making this big investment.
With homebuilders advertising reduced rates to entice homebuyers, don't let the “value” of the sale entice you into buying more than you can afford. First, determine an appropriate home price range. A good way to figure this out is that monthly mortgage payments should be no more than 29 percent of gross income.
While you may take into consideration that your income may increase over the years – just be sure not to over-extend yourself – making you “house poor.” With all the new homes on the market, you'll be sure to find one that meets your wants and your wallet. When choosing a mortgage, you have two basic options – a fixed or an adjustable rate mortgage (ARM).
With interest rates at all-time lows, fixed mortgages are a good, safe option since they ensure the same rate for the life of the loan. While flexible ARM loans may seem enticing with their lower initial rates and monthly payments – beware. As interest rates increase, so will your payments – and could eventually make your monthly payments unaffordable.
Once you've found your dream home at a dream price, continue to build on your investment by including eco-friendly options. If buying a new home, check to see that the homebuilder follows the R-2000 Standard, a voluntary benchmark for homebuilding in Canada that incorporates cost-effective, energy-efficient building practices and technologies. Some of these practices may include water-saving faucets and showerheads, energy-saving appliances, high-efficiency heating and cooling, and high R-rated insulation and windows.
While being green with the implementation of these eco-friendly products – you'll also be sure to save some green during the life of your home on energy and water bills. As of 2009, all Moen bathroom faucets now feature a 32 percent water savings over the industry standard. More information on water-saving faucets and showerheads is available online at http://www.moen.ca/. courtesy of- News Canada
Visit www.LisaTollis.ca for more information about Real Estate & Listings in the Ancaster-Hamilton-Burlington Ontario and All of the Surrounding Areas.
Lisa Tollis SRES.
Seniors Real Estate Specialist
Royal LePage State Realty, Brokerage.
Office: 905 574 4600
Toll Free: 1 877 574 4601