Top 10 Reasons Why You Should Buy A Home Now
If you’re like most first-time home buyers, you’ve likely had every Tom, Dick and Harry tell you that you should buy a home. However, you may still wonder if buying a home now is the right thing to do. Having reservations is a normal part of the buying process. Perhaps you’ve been sitting on the sidelines, waiting, biding your time for the “best time” to buy, we’re here to tell you that the time is now and here’s 10 good reasons why:
1. Historically house prices rise over time
Prices have come down 4.3% over the past year, meaning you are buying at an opportune time for financial growth. Home prices in Regina have risen on average of 6.7%* a year over the past 20 years, and that trend is likely to continue. If you buy a home now, you’ve put your money in a safe long-term investment which is likely to continue growing.
*an average based on statistical growth, some years have seen larger or lower growth
2. Build a nest egg, force yourself to save
A portion of every payment you make each month will go to the principal amount on your loan, this in turn builds available equity (money) that can later be converted to cash to fund the purchase of a larger home, renovate your home via a Home Equity line of credit or used to fund your retirement.
3. Free down-payments
Perhaps you’ve wanted to make the move for a while but saving for your down-payment is a daunting task. With the City of Regina Capital Housing Incentive Grants you can gift yourself up to $15,000 towards the purchase of a brand-new Mills townhome at Hawkstone and receive a 5-year tax abatement for an additional saving of approximately $10,000, that’s $25,000 of free money that never has to be repaid!
4. PST Exemption
In 2017, the provincial government instituted PST tax on newly constructed homes, meaning on a $300,000 home that adds an additional $18,000 to the purchase price. Due to the swift and thoughtful actions of our management and staff, we were able to apply for PST exemption on our projects, the Mills, Tamarack Pointe, Silver Oak and Merlot 3, are all offered with PST exempt pricing. This is an immediate saving of a minimum of $18,000 over any other newly constructed project with PST giving you huge price advantage in the future should you decide to re-sell.
5. Low interest rates
The Bank of Canada has held it it’s benchmark interest rates at 1.75% on April 24, 2019. Given that the economy is on track for a lower growth than the current inflation rate it’s a guideline that rates will remain low, which is why “an accommodative policy interest rate continues to be warranted,” in a statement issued by the Bank of Canada. This should be pleasing since it diminishes the likelihood of increase in lending rates and means you could expect rates to remain stable through your new home build.
6. The Home will be yours.
No one forcing you to live with beige walls for all eternity, paint red stripes, install checkered flooring, move a wall any way you want, make it your own, unlike renting you can change the home to suit your needs.
7. Peace of mind
No worrying about rent increases or your landlord selling and needing to find a new place. With a home you can live there for as long as you like while having fixed payments every month for as long as your mortgage term! No more unwelcome surprises!
8. Have as many pets as you want
Are you a pet lover that’s tired of having fluffy the hamster when what you really want is Beethoven the St. Bernard? With owning a home you can have as many pets as you like without anyone forcing size restrictions or banning pets from your home.
9. Take pride
Make an investment in your future and give yourself and your family a sense of security and stability by owning your own home.
10. It’s a buyer’s market
No need to settle for something that isn’t right, but for how long? Higher mortgage rates and provincial sales tax have drastically cooled the new home housing market resulting in a 67.4% decrease in building permits in the first quarter of 2019. This means that the bargain prices are a thing of the past as builders no longer have extensive inventory sitting on the housing market they need to sell. This reduction could create a supply imbalance in the market: too much demand and too little supply, creating an acceleration in home prices due to this imbalance.