It's very common in today's real estate market for many individuals to begin their real estate journey as renters, getting a taste of having their own place, and the responsibilities that come with it. Presently in Canada over 67% of Canadians are home owners, and over 72% in Alberta.
Market Conditions and Trends become a deciding factor
One of the biggest factors in determining whether or not home ownership is right for you is by first looking at the Calgary housing market and determining (with the help of your REALTOR) whether now is a good time to purchase, or if holding out could pay off. Typically once you're in home ownership, whether you buy/sell when the market is up or down, you'll be buying and selling within that market, so you won't be affected too much by the market conditions (There are factors to this though, sometimes the Luxury markets are hit harder so someone downsizing for example could have a bigger impact on their bottom line in a down market). However, new buyers coming into the Calgary housing market are subject to current market conditions, buying during the peak can result in potentially over paying for a home, while buying in reduced markets (or buyers markets) means better deals and bigger reductions on purchase price.
Perfecting the timing is very hard, while it's always easy to look back and think "I should have bought then" it's often difficult to determine whether the current market conditions will result in growth or further downturns. Our team routinely meets with industry leaders, mortgage representatives, and consult with economists who provide insight and information on current LOCAL economic conditions that allow us to help consult and provide guidance to our clients.
Renting or Purchasing based on your current lifestyle
Another factor for potential home buyers to consider is their current lifestyles. Those who have very demanding and hectic lifestyles may choose to continue to rent instead of purchasing, as they're unable to see themselves committed to the added responsibilities of home ownership. We also find individuals who travel a lot, or those who move often (due to work or other reasons) sticking to renting as it's generally not a good investment to buy/sell a home often when expenses are considered.
Purchasing a home can create wealth and equity
Generally speaking, home ownership is seen as a vehicle for investment building, renters are well aware that monthly they're paying into their landlords mortgage or pockets, while they're gaining a place to stay and live, the owner is potentially creating wealth and equity. In North America, home ownership is one of the most common and standards ways for individuals to grow their wealth, and create financial stability.
Before purchasing, ensure you're financially ready to make the jump
- Getting matched with a Top lender and Obtaining a pre-approvals from your mortgage provider, they will calculate your mortgage affordability by determining your debt to income ratios, evaluating credit scores and factoring in other elements including down payments, cash on hand, etc.
- Get matched with Top Calgary Real Estate Agents - This will put you ahead of the game in both the process of getting approved, getting the right home with the most value for your money and in determining your needs / wants in home ownership, and most importantly negotiating the right way for your deal!
- Consider your lifestyle and whether you're ready to take on home ownership and the various forms of home ownership (detached, attached, apartments, etc)