We’ve decided to sell our condo before we try to buy a home because we just can’t take the risk of carrying two mortgages at the same time.
Selling first is usually the way to go, but with more than a decade of rising real estate prices in Toronto, there is a temptation to buy first.
Buying first has some advantages. For instance, it’s possible that interest rates could move higher in the coming months. There are some very tempting mortgage offers, such as 5-year rates of 2.99 per cent, that we will miss out on because we’re not buying yet.
In our case, being able to buy a home first would allow us to move into a new place and then paint and fix up on condo from the comfort of our new home.
With three young children and lots of stuff, we found this scenario very tempting.
But the big disadvantage is that we wouldn’t have access to the equity in our condo when we buy a house. If our place doesn’t sell, we run the risk of carrying two mortgages at the same time.
On average, it takes a home in the Greater Toronto Area about 29 days to sell. Our agent told us the average in our building is 70 days.
We’re also concerned that the market could turn suddenly. More banks and observers are warning that the Canadian housing market could see a correction in the coming months, particularly in Toronto and Vancouver. Estimates range from a downturn of 10 per cent to 25 per cent.
On the other hand, selling before you buy has a big advantage: You know exactly how much you have to spend before you put an offer on a new home.
We realize that our dream home may come and go while we’re still selling our property, but to us the risk isn’t worth it.
Also read:
Should you sell your home before buying?
House prices to rise again in 2012, but more slowly than last year: LePage
Selling first is usually the way to go, but with more than a decade of rising real estate prices in Toronto, there is a temptation to buy first.
Buying first has some advantages. For instance, it’s possible that interest rates could move higher in the coming months. There are some very tempting mortgage offers, such as 5-year rates of 2.99 per cent, that we will miss out on because we’re not buying yet.
In our case, being able to buy a home first would allow us to move into a new place and then paint and fix up on condo from the comfort of our new home.
With three young children and lots of stuff, we found this scenario very tempting.
But the big disadvantage is that we wouldn’t have access to the equity in our condo when we buy a house. If our place doesn’t sell, we run the risk of carrying two mortgages at the same time.
On average, it takes a home in the Greater Toronto Area about 29 days to sell. Our agent told us the average in our building is 70 days.
We’re also concerned that the market could turn suddenly. More banks and observers are warning that the Canadian housing market could see a correction in the coming months, particularly in Toronto and Vancouver. Estimates range from a downturn of 10 per cent to 25 per cent.
On the other hand, selling before you buy has a big advantage: You know exactly how much you have to spend before you put an offer on a new home.
We realize that our dream home may come and go while we’re still selling our property, but to us the risk isn’t worth it.
Also read:
Should you sell your home before buying?
House prices to rise again in 2012, but more slowly than last year: LePage
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