Vancouver, are you ready to make the move away from renting?
Many of us have heard the following: "The greatest fortunes were made in real estate." Real estate should ideally be a longer term investment, however just 10 years ago the average home price in BC was approximately 208,000* compare that to today's average BC home price of approximately 465,000*. Where else can you get that type of return on any investment, and STILL sleep at night?
If you're renting or currenlty a home owner and thinking of buying an investment property, then waiting for prices to go down or rates to go any lower can be an endless waiting game...all the while it can become increasingly harder to save the downpayment. Did you know that now you may also qualify to borrow your downpayment? Many lenders and insurers still allow for this. And Vancouver is Canada's most beautiful city and with all the international exposure, I'm even more excited about real estate here!
- With today's historically low rates, to borrow 300,000 is less than 985.00 per month, or if you prefer a fixed rate, less than 1280,000 per month!**
When you pay down your mortgage, you are paying yourself and...if history repeats itself...you are also build your equity! Over the last 10 years we've seen real estate prices double, if prices go up by 5% next year, you've made 10,000 on your 200,000 investment. How long does it take you to save 10,000?
And it's all tax free as long as it remains your principle residence. please feel free to comment or ask me any questions on tips on how best to make home ownership affordable.
THANK YOU FOR READING, HERE'S MY DETAILED INFO ON THE PAYMENTS
*Price statisitics from CMHC July 2009 Market Report
**985.00 per month based on a 3 year closed variable rate of prime less 0.30% (1.95%) and 1280.00 per month is based on a 5 year closed rate of 3.75% which are both currently available at the time of this blog posting Jan 25th 2010. Based on a 35 year amortization and monthly payments. CMHC insurance premiums if any would be added to monthly payments and vary depending on percentage put as downpayment. On a mortgage of 300,000 they would typically be aprox. 30.00 per month based on 5% down.