Some Questions That The Buyer Should Be Aware of New Homes For Sale In Milton Ontario
When considering a real estate investment, the most important thought that occupies the investor’s mind is whether or not his property will appreciate. Markets can go either way and when they do, emotions run high. Real estate is one of the most expensive investments a person makes and hence, there is much thought put into the process. Market crashes can cause havoc. For buyers already in the market, this could be a loss of investments. For those who are yet to jump in, it could be an opportunity to buy. Good growth in the value of a home is an asset to the investment portfolio.
Here are five questions and answers the real estate investor would be interested in knowing –
1. Is the real estate market going to cool off?
The Office of the Superintendent of Financial Institutions (OSFI) is tasked with taking care of Canada’s risk profile in the financial services and insurance industries. As a risk manager who knows his job, the OSFI scrutinizes mortgage underwriting processes currently in practice in Canada. This requires stress-testing of banks and lenders. The idea is to understand how capable the country’s financial institutions are to withstand a market crash. It is part of this initiative that got the banking regulator to ask some financial institutions to stress-test a 50% price decline in Vancouver market, 40% in house prices in the Greater Toronto area and 30% in the rest of Canada.
It is no indicator of times to come.
2. Are the country’s hottest real estate markets overvalued?
The Canada and Mortgage Housing Corporation’s Housing Market Assessment Survey, 15 housing markets in the country are currently overvalued.
The areas they included are Calgary, Toronto, Vancouver, Saskatoon, etc. However, the real estate prices are localized. Hence even if there is a possibility of 60% correction, it wouldn’t be uniform across the country.
3. Will the new foreign buyer’s tax affect you?
A Canadian House task force created by the government and comprising of all three levels of government was tasked with assessing the country’s real estate market. They will suggest policies and actions to take to stabilize and make the market affordable. A 15% foreign buyer’s tax in Metro Vancouver was the result of this committee suggestion. This should possibly not bother you if you are looking for new homes for sale in Milton Ontario.
4. Are you a buyer looking to buy a home in Milton Ontario? Or maybe sell?
Buying a home may be part of a larger financial plan. There could be other pressing needs associated with it. Hence, it is suggested not to wait for any market correction. This could also mean that there could be a drop after you have purchased. You should be able to stomach the decline in price. Prepare to pay at least 20% of the mortgage as down payment.