At a time when the economy carries so many uncertainties, it would seem like the most prudent thing to do is to minimize spending. It makes sense. We don’t know what will happen in the future and what resources we’ll have at our disposal. However, there are others who paint a different picture. To them, it’s a bright shining garden brimming with opportunity. So why would you ever consider buying a new home now rather than later?
Very Low Interest Rates
For starters, the favourably low interest rates are an enticing incentive for getting a mortgage now. With interest rates dipping so low, it’s only a matter of time before they start rising. Another factor to consider is that homes have become much more affordable. Builders and banks are offering great deals to earn your business. The aligning of these two factors can put you in a position to reap the rewards of house appreciation.
That’s right - over time you’ll see your home equity grow faster than it would if you bought at time when there was higher interest rates and house prices. That means there’s more money in your pocket! The housing market is unpredictable so the suggestion of “riding it out” isn’t always to your benefit. If you have the means to buy a new home right now, why put it off when prices begin to rise?
During economic uncertainty, the idea of investing in your future might be the best thing to explore. The truth is, when it comes to real estate, it’s precisely during these times when you get more for your money. There are so many housing options available and it truly is a buyer’s market in terms of the equity and interest advantages you have.
Premium Lot Selection & Lower Prices
Of course, outside of the financial reasons to buy early, there’s also some logistical advantages when it comes to buying a new home in the early phases of a community's development. Since a builder has just started building in the neighbourhood, you’ll have one of the first chances to select a premium lot and location for your build. That’s a huge plus if you have something specific in mind. (Maybe that lake front property you’ve always wanted is ready for the taking!) Rather than waiting on hope and chance that the location you want is available, signing on early gives you certainty that you’re getting exactly what you want.
Options like exterior colours and elevation are much easier to choose from at the beginning of construction. Buying early also gives you the opportunity to profit from introductory prices on new homes. You can get settled before your neighbourhood begins to flourish and populate. As the other phases of your community are completed, you'll have more access to amenities and will see your home's value rise.
There’s much to think through in the days ahead as you process the advantages of buying a new home now. The hope is that you have a few more items to add to your list and you have a good sense of optimism about what your future could look like. Like in every garden, there’s a time to plant and a time to sow. The question is, what season is it for you?
