You may have seen the ad on TV about the couple who bought what looks like a nice house, only to discover it has numerous flaws, such as being shaken off its foundations every day by the passage of the 11 o’clock train!  If you’re shopping for a new home in Spruce Grove, Stony Plain, Parkland County or the Edmonton area, you’re going to want to consider more than just the features of the house itself.

You probably have a long list of things you want in a home:  the number and size of bedrooms, the set-up of the kitchen, modern fixtures in multiple bathrooms, amount of storage space, parking, cosmetic features such as paint colors and flooring, and much more.  You may have considered the style of residence that would work best for you, such as a 2-storey home for a growing family or a bungalow for people with reduced mobility.  You’ve probably also given some thought to landscaping features, such as patios and decks, trees and shrubs in the yard, walkways, driveway space, fences, and so on. 

But almost as important as the house and yard is the neighborhood in which your potential new home is located.  Yes, there’s that real estate cliché again – location, location, location – showing up over and over again as a very important element in the whole home buying and selling experience. 

Because, when you shop for a home, you’re really shopping to meet the needs of your lifestyle, and that always extends beyond the walls of the building in which your family sleeps at night. 

If you have a young family, you probably are interested in a neighborhood close to a school or adjacent to a park with a playground.  If you are a senior, you might look for a neighborhood where the amenities you need or want, such as shopping, recreational activities, medical facilities, fine restaurants, are in convenient reach, perhaps even walking distance.  Maybe you spend long hours at your job or other activities, so a home within an easy commute would be good for you. 

This isn’t all.  Consider the things you want or don’t want to live near.  Some people like corner lots, for example, while other people detest them.  Many people would love to live in a home that backs onto green space or a water feature (and often, as a seller, you can command a higher price for a home like this).  Most people would prefer that their dream home not be located on a busy and noisy thoroughfare, or next to a high-crime area.  As you shop for your new home and new neighborhood, it doesn’t hurt to think about the resale value of the homes you’re looking at, and realize that the value comes from more than the building on its lot.   Remember too, that there are things you can change, such as kitchen counters and cupboards, and things you can’t, like that train I mentioned earlier!  The home, its surroundings and your lifestyle become a package deal. 

I’m always happy to respond to your comments and questions!  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Do you have a mortgage on your Spruce Grove, Stony Plain, Parkland County or Edmonton area home coming up for renewal?  Do you expect the process to be just another rubber-stamping, or could there be problems?  A piece of legislation that came into effect on June 21, 2012 could cause you some grief if you have ever had any issue in your credit history. 

The mortgage debt crisis in the US of a couple years ago had people on this side of the border calling for tight controls on lending to prevent a similar calamity in Canada.  The Office of the Superintendent of Financial Institutions (OSFI) responded with several initiatives, such as decreasing the length of mortgage amortization to a maximum of 25 years from the previous 35 years, and limiting borrowing on a home equity line of credit to 65% of the home’s value from the previous 80%, among other things.  (See my blog articles:  “Changes to Mortgage Rules”  and “HELOC Rules Changing”)

A guideline from the OSFI that went into effect on June 21, 2012 (Guideline B-20 – Residential Mortgage Underwriting Practices and Procedures) is apparently being interpreted by some lenders to mean that a heavier hand is needed in assessing applications for mortgages and their renewals.  This means that people who were delinquent on bills in the past but who have now brought payments up to date and are now prepared to enter into a home purchase with an acceptable down payment, good income and so on are being denied a mortgage or a renewal of their mortgage.

Reading through the guideline and its accompanying information would suggest that there is a very broad base for interpreting it, making the scenario of sweeping mortgage denials possible.  But the guideline itself, as policy for Federally-Regulated Financial Institutions (FRFIs) to formulate their own rules and regulations around their money lending practices, contains cautionary wording that would seem to prevent such refusals, urging FRFIs to be reasonable in their procedures:

“Background and Credit History of Borrower

FRFIs should ensure that they make a reasonable enquiry into the background, credit history, and borrowing behaviour of a prospective residential mortgage loan borrower as a means to establish an assessment of the borrower’s reliability to repay a mortgage loan.

For example, a credit bureau score, offered by the major credit bureaus, is an indicator often used to support credit granting. However, a credit score should not be solely relied upon to assess borrower qualification, as such an indicator measures past behaviour and does not immediately incorporate changes in a borrower’s financial condition or demonstrated willingness to service their debt obligations in a timely manner.”

Fortunately, there are many lenders who recognize that their job is to do what they can to help their clients!  Fran Jenkins, Mortgage Specialist with ATB Financial in Spruce Grove, comments:

“First, I do not see any drastic tightening of credit lending at this time.  I have been aware in the past 3 years of such lenders as MCAP and Resmor Trust requesting full payment of mortgage funds at time of renewal.  These companies tend to operate differently than Chartered Banks and ATB Financial.

“Low credit scores do not automatically cause an application to be declined.  That is why there are individuals such as myself, with experience in lending, that can explain the reasons for the credit scores and do a full financial analysis to support an application.  Otherwise, if system generated, very few applications would be approved…

“I agree with the statement that slow payments is cause for concern on a lending application however there are many reasons why a client may have these slow payments.  Yes, keeping one’s payments up to date is important however not always possible.  This is what your Mortgage Specialist must understand.

“Today is no different than 20 years ago in the lending environment. You will be granted a Mortgage and/or Mortgage Renewal going thru the same process…..what is imperative is having the right Mortgage Lender supporting you as a client and going above and beyond expectations to make sure you are being presented in the correct manner.”

Fran Jenkins goes on to point out that it is true fewer high-risk applications are being approved these days, but even in boom times these borrowers should not have been approved.  High risk clients are those with bad credit who have neglected making payments for extended periods of time or who have even refused to pay back debts. 

Bottom line?  Chances are, if you have been conscientious about maintaining a good credit history and have a decent record of taking care of your debt load, the odd slip won’t be held against you.  And the trick is to shop around for a lender who will work with you to find the right mortgage for you.

Thanks to Fran Jenkins of ATB Financial for taking the time to provide her wisdom on this complicated topic!  You can contact her here:

FRAN JENKINS, B. Comm

Mortgage Specialist, ATB Financial

Cell  780 722 2266 |  Fax  1 888 722 8291

Toll Free 1 855 375 5022

EMAIL: FJenkins@ATB.com

Comments or questions about this article?  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Recently, a number of my clients buying homes in Spruce Grove, Stony Plain, Parkland County and the Edmonton region have agreed to accept Title Insurance in place of an RPR.  What do these terms mean?  What are the advantages and disadvantages? 

An RPR, or Real Property Report, is a survey of a property showing exact measurements of boundaries and the placement of all improvements or permanent structures (house, garage, shed, deck, fence, etc.), as well as the location of easements, utility rights of way, and so on.  The RPR is a legal document prepared by an Alberta Land Surveyor.  A certificate of municipal compliance attached to the RPR means that local rules have been followed regarding the current state of improvements.  That is, every structure on the property is the proper distance from the property boundaries or rights of way, permits are in place for things like attached decks of a certain height, and so on.

Real estate purchase contracts in Alberta require a seller to provide a buyer with a current RPR in conjunction with written proof of municipal compliance.  This could be problematic if the sellers have made improvements to the property, such as adding on to the home, putting up a fence, building a deck, and the like, and maybe they did some of these things without getting a municipal permit.  This would mean that the RPR they received when they purchased the property no longer reflects the current state of the property.  The sellers are then obliged to order a new RPR from an Alberta Land Surveyor (and this isn’t cheap or quick), or update the old one.  The sellers must also seek retroactive municipal compliance for neglected permits, sometimes a lengthy, complicated and difficult process – unless the buyer waives the requirement for the Real Property Report with municipal compliance.

Waiving that requirement may put the buyer at risk should it turn out that the improvements do not comply with municipal rules.  What if the detached garage was built too near the property line, or on top of the gas line?  What if the deck built on to the side of the house hangs over the neighbor’s property by a foot?  The new owner of the property could be on the hook for the considerable expense of making these things right, not to mention the hassle of tearing down perfectly good structures that just happen to be in the wrong place.

That’s where Title Insurance comes in.  Title Insurance in Alberta “guarantees” that improvements on the property comply with zoning bylaws and that there are no encroachments either from other properties or onto other properties.  Title insurance doesn’t magically make problems go away.  But, if bylaws have been broken or encroachments exist, title insurance (with some restrictions) will pay the cost of obtaining compliance or removing encroachments. 

Advantages? 

• Title insurance can be a good compromise in situations where a new RPR would uncover a problem (for example, no permit for an attached and covered deck) whose solution would be much more costly or invasive or time-consuming than either seller or buyer wants to undertake.
• It can also be an excellent hedge against such things as mortgage or title fraud, builder’s liens, or hidden deficiencies, such as basements developed without permits, underground storage, and the like.
• Title insurance usually costs considerably less and is often easier and faster to obtain than a new RPR.

However… there are some disadvantages that buyers in particular should be aware of:

• Property buyers in Alberta should know that the concept of title insurance originated in the US where citizens do not enjoy the same level of protection that the Alberta system of land titles registration provides.  An up-to-date RPR with municipal compliance is still the best protection for a buyer, as it ensures that the property meets all current bylaws, regulations and the like.
• Title insurance does not reveal underlying issues or correct structural deficits.   It merely provides the financial means for the future to clean them up should they be discovered and should there be an insistence that they be made right.  Note also that title insurance, even if obtainable, does not absolve sellers from the legal obligation to disclose all known defects about their property.
• The usual arrangement when title insurance is offered in place of an RPR is that the buyer purchases the insurance and is reimbursed by the seller, as per the purchase contract.  The new owner of the property is then the holder and beneficiary of the insurance policy for as long as he owns the property.  But… when it is time for him to sell the property, he must either pay for a new RPR after correcting problems, or offer and pay for the same deal he accepted, hoping that the new owner will agree to title insurance – not a foregone conclusion.

So, as a buyer, what is your best course of action?  Given the above, it might seem that you should always insist on a new RPR.   Sometimes that is the right thing to do.  But there are many situations, especially in cases where “correcting a problem” may be worse than living with the status quo, and where time is a limiting factor, when accepting title insurance in place of a missing RPR or in addition to an outdated RPR is the way to go.  Your realtor and lawyer are in the best position to help you decide.

For more information and detailed examples:

Real Estate Council of Alberta (RECA) Information Bulletin:  Title Insurance

Real Estate Council of Alberta (RECA) Information Bulletin:  Real Property Reports

(The above article is not intended to cover all aspects of the topic of RPRs and title insurance.  Buyers and sellers are urged to seek detailed expert advice relevant to their personal situations.)

Questions or comments about this or other real estate matters?  I’m here to help!  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Whether you are seriously in the market to buy a house in Spruce Grove, Stony Plain, Parkland County or the Edmonton region, or just like to look at pictures and dream, you might find an article about the HGTV show House Hunters informative and entertaining.  

“HGTV show inspires tips for real-life seekers” (published in the July 28, 2012 edition of the Edmonton Journal, and other newspapers, as well as online) is a tongue-in-cheek commentary by columnist Mary Beth Breckenridge about her addiction to the TV show House Hunters, in which she notes that buyers seem to toss their common sense when viewing property for sale.  Here is what she advises would-be home purchasers:

“-Granite countertops do not make a kitchen. Yes, they’re lovely, but maybe you should open the drawers to make sure they don’t require the kind of force that dislocates elbows, and turn on the faucet to verify that the water flows in more than a trickle.  Oh, and by the way, there are other kinds of countertops. Very nice ones, in fact.

– Location, location, location. It didn’t become a real-estate cliché without good reason. You can replace carpet and reconfigure rooms, but that freeway noise? You’re stuck with it.

– For the love of God, price a couple of cans of paint before you reject a house over the blue in the baby’s room.

– You might want to think twice about going right from an efficiency apartment to a McMansion. Furniture costs money, you know.

– Five bedrooms for two people? Really?

– Two-storey great rooms look dramatic, but check the heating bills if you live in Minnesota.

– Don’t give the yard short shrift. It takes hours to knock down a wall but years to grow a tree.

– After a few months of two-hour commutes, you’re going to kick yourself for choosing the sparkly new Colonial on the outer reaches of exurbia over the fixer-upper 10 minutes from your job. Even if it does have hardwood floors and stainless steel appliances.

– And remember what I said about countertops? Ditto appliances.” 

So, what do you go for when you’re searching for new digs?  Are you one of those people who falls for something shiny, or can you look beyond what’s pretty (or, for that matter, what’s not so pretty) to find what’s practical?  Home stagers exist for a reason, and it’s the wise buyer who is able to resist their tricks!  Learn to distinguish what you absolutely must have from what would be nice to have.  Separate things that can be changed (paint color, counter tops, appliances, other decorative items) from those that can’t (street on which the home is built, its orientation on the property, other permanent construction details).  Do this and you’re sure to find the right home that you’ll be happy to live in for a long time.   (See also my blog article from April 5, 2012 entitled “That Perfect House”.)

Still a little confused about what to look for?  Let me help you.  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

What is a condo?  

Many people hearing the word “condominium” think of an owned unit in a high-rise apartment building.  But a condo can be any type of dwelling:  an apartment in a low-rise building, a townhouse, freestanding house, duplex and so on.  What makes a condo different from a “freehold” house is that you own your unit only to the walls, and you share ownership of the land, rest of the building and common areas.  This sharing of ownership is also a sharing of costs with other members of your condo association.  Decisions about the property are made by a board of directors or a property management company.

How do you decide if owning and living in a condo is for you? 

Living in any kind of dwelling comes with trade-offs and compromises!  Consider these advantages and disadvantages of condo living over owning a freehold home:

Pros:

• Kiss your snow shovel and lawn mower goodbye!:  Monthly condo fees cover the cost of outside maintenance, such as snow shoveling, lawn mowing, eavestrough cleaning, possibly even exterior window washing. 
• Cost sharing:  Some of your condo fees go into a reserve fund to be used for major repairs such as re-shingling the roof or replacing windows.  If more money is needed, special assessments pool funds from all condo owners so the cost per owner is usually much less than for a freehold home.
• Lifestyle:  Condos are ideal for people who prefer to live on one level or in a small home, who enjoy socializing with their neighbours, who like living in prime urban locations, who appreciate the convenience of being able to leave home for days at a time without having to worry about yard maintenance, security and the like.  Many condo developments also create communities of like-minded people, such as young professionals or seniors, resulting in increased opportunities for recreation, socializing and support.
• Expression of personal taste:  Freedom to decorate the interior of your unit as you wish.
• Amenities:  Does your 1200 square foot bungalow have a swimming pool, exercise room, theater room, party room and guest suite?  Didn’t think so!
• Price:  Condos are generally cheaper to buy than a freehold home.  Lower property taxes too!
• Location:  Condos are often located “where the action is” – in the heart of a major city and close to facilities and services such as restaurants, medical facilities, artistic and recreational activities, public transportation and so on.
• Security:  With close neighbours all around, plus secure entrances and even doormen in some complexes, you may feel safer than in a self-contained house.  If your neighbours are owner occupants, they may be more likely to take care of their property, and to watch out for yours. 

Cons: 

• Price:  Condos may be cheaper to buy than freehold homes, and you may be able to get more house for the money BUT, not necessarily!  Research and do your homework!
• Investment value:  The value of condos tends not to rise as much or as quickly over time as the value of freehold homes, and improvements made to a condo may not give the same return on investment as in a regular home.
• Condo fees:   A mortgage may eventually be paid off, but you’ll be paying monthly condo fees, which can be substantial and can always be expected to increase, for as long as you live in your condo.  This is more onerous if you don’t use amenities like a swimming pool or party room that your fees are subsidizing.
• Special assessments, or “everybody pays”:   If the condo board needs money to pay for almost anything beyond what’s been budgeted, things like unforeseen utility bill increases or emergency repairs, all condo owners will be on the hook for a share of the pain, with no choice but to pay. This includes paying for damages caused by other condo owners or their guests, or legal fees if the condo association is involved in a lawsuit.
• Management:  Condo developments are usually managed by volunteer boards whose members may or may not have the experience and expertise to make informed decisions, or by property management companies whose first priority may be money rather than the welfare of residents.  Poor management could result in neglected maintenance, arbitrary special assessments and more, leading to costly situations for residents which might include a decrease in the resale value of their condos. 
• Rules and bylaws:  Most condo associations have many, and the wise prospective buyer will study them thoroughly before committing to the purchase.  For example, a condo development may decree that in-suite washing machines cannot be used before 8 AM or after 10 PM.  Rules relating to parking, noise, pets, garbage disposal, outdoor barbecues, even overnight guests are common.  Something you may want to ask about:  Are amenities, such as a preferred parking stall, transferable?
• Community living:  Sharing walls, ceilings and floors with other residents, especially if sound-proofing is less than optimal and neighbours are noisy, can be stressful.  Condo living also means less privacy and possibly less safety when it comes to things like fires and the like.
• Parking:  Often limited and probably not adjacent to one’s unit.
• Lack of green space or limited outdoor living space:  Condos in downtown locations in particular are unlikely to be surrounded by lawns and gardens.  Patios and balconies, if they exist at all, are typically small.
• Limited storage space
• Lack of control:  Within your own unit, you can usually repaint the walls, change the cupboards, flooring or appliances, but beyond your walls, you may not have a choice in things like lobby décor, landscaping, window replacement and the like.  Worse, the timetable and budget for such things will not depend on your convenience or approval.
• Property insurance:  Condo owners may require special insurance to protect not just their personal investment but also their share of the common property in the condo development.  Ask your insurance agent about “loss assessment”.  Also, take the time to read carefully what’s included and covered in the condo corporation policy; that way, you’ll know what you need to include in your personal policy.

Do the benefits of condo living outweigh the drawbacks? 

Here’s some more advice if you are thinking of buying a condo:

•  Talk to the residents:  Meet the people who will be your neighbours.  Ask them what they feel is good and bad about the condo development and its management.
• Consult the experts:  Look for a realtor and lawyer who have experience in dealing with the condo market.
• Read provincial condo legislation, such as the Province of Alberta Condominium Property Act. 
• Inform yourself about types of ownership:  Visit HomeBuyer.ca for a look at the different types of condo ownership.     See also Buying a Condo from the Canadian Bar Association.
• Compare condo fees:  Find out what the fees cover.  You may find that the condo development with the lowest fees is not necessarily the best choice; higher fees, for example, might be covering things like utilities, cable and internet. 
• Study the condo bylaws, rules and regulations:  You’ll want to know what you can and cannot do – and what your neighbours are allowed to do as well.  Can you have pets?  run a business from your unit?  and so on.  Take note also of penalties imposed for breaking the rules.
• Find out about the occupancy rules:  Will your neighbours all be owners, or will they mostly be renters?  Will you be allowed to rent out your place?
• Ask pointed questions about the condo development and its management:  Is the development well managed?  What is the current financial situation of the development?  What financial reserves are maintained?  What special assessments have been done?  What work is planned for the future?  If you reach the point of having a home inspection done, pay the extra to have your inspector look beyond the walls of the unit you’re considering for purchase.
• Buy the right property insurance:  Remember that you may need to protect your share of common property should an accident cause damage beyond your own unit.
• Plan to get involved with the condo development board of directors:  This is the best way to be informed and have a say about what happens in the condo community.

For an excellent and thorough exploration of everything relating to condos in Canada, download the Condominium Buyers’ Guide from CMHC.    Of particular use to a prospective condo owner are the checklists for evaluating the physical condition of the condo, as well as detailed lists of questions to ask before you sign a purchase contract.

Ready to jump into the condo market, either as a residence for yourself or as revenue property?  I would be happy to help.  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Have you been thinking now is the time to buy that new home in Spruce Grove, Stony Plain, Parkland County or the Edmonton area?  Make sure you read about the new rules for government-backed insured mortgages going into effect July 9, 2012. 

1)  Maximum amortization reduced to 25 years.  Until recently, amortization periods could be as long as 35 years.  That dropped to 30 years in 2011 but will now max out at 25 years.  The government points out that this allows Canadians to pay off their mortgages faster, meaning a faster build-up of equity and the payment of much less interest, but the bad news is many Canadians may no longer qualify for a mortgage.

2)   Maximum amount Canadians can withdraw in refinancing their mortgages decreased to 80% from 85% of the value of their homes.

3)   Maximum gross debt service ratio set at 39% and the maximum total debt service ratio at 44%.

4)   Government-backed insured mortgages only available to homes with a purchase price of less than $1 million.  Homes costing less than $1 million can still be purchased with 5% down but those above $1 million will require a down payment of 20%. 

Read the official Government of Canada announcement.

Wondering how to finance your home purchase?  I can help you find a lender.  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Spring time in Spruce Grove, Stony Plain, Parkland County and the Edmonton region just feels like the right time to make all kinds of changes and start new things, doesn’t it?  If you’ve been thinking of changing your residence or maybe getting into the housing market for the first time, there’s no better time than now.  Prices are stable, the inventory of homes on the market is high, and mortgage rates remain at all-time lows.  But it’s such a big decision and where do you start?  What do you need to know to buy property?

The Real Estate Council of Alberta has produced a handy little brochure called The Buying Process that answers a pile of questions you may not even know you had.  Some of the many topics covered in a few short pages include:

Decision to buy

Contact a Real Estate Professional

Know Your Options (regarding the relationship you have with a real estate professional)

Your Mortgage (getting pre-qualified and pre-approved and what the difference is)

Costs (besides the purchase price of the home)

Contact a Lawyer

Timing (various deadlines set by the Purchase Contract)

Looking at Properties

Disclosures (sellers are obligated to reveal any defects in their property)

Inspections

Purchase Contracts (the document that presents your offer to the sellers)

Multiple Offers

Terms and Conditions

Property Insurance

This brochure is well worth the few minutes it will take you to read it and should give you a good basic understanding of the process.

If you have further questions, I am always happy to answer them!  Please phone or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Looking for a home, whether in Spruce Grove, Stony Plain, Parkland County, the Edmonton region or elsewhere, is a lot like looking for a mate.  Each specimen you find has its own unique features, some great, some not so great – and the trick is to find one you can live with!

When clients give me a long list of things they absolutely have to have in a home, I know we might be looking for a long time, unless those clients have deep pockets!  This is equally true if clients are looking for a particular feature that is not common or standard in the average newer home these days.  For example, it is rare these days to find new homes, unless they are high-end models, with separate dining rooms.  It is more common today for new homes to be built in the open concept style, with a kitchen, dining area and living room that flow together instead of being surrounded by walls.

I usually counsel my clients to make a list of everything they’d like in a home and then to cut that list down to 10 prioritized items.  I also encourage my clients to differentiate between needs and wants.

• What are things you absolutely have to have based on family configuration, activities, possessions and so on?  For example, a family with two parents, three kids and a grand-parent living with them is going to need a different kind of home than a single person living with his dog.
• What are things that would be nice to have but you could live without if you had to trade off one feature for another?  For example, would a laundry room in the basement rather than on the main floor work if it means that some more critical feature is present in a home being considered?
• Are there things that could be changed in the future?  For example, an unfinished basement can be a positive or a negative depending on the point of view of prospective buyers.  Sometimes a home’s potential counts at least as much as its current condition.
• Notice I haven’t said a word yet about price.

Once a reasonable and well-edited list of must-haves is on the table, I caution my clients that compromise is a word they are probably going to hear a few times before the deal is done.  If you have ten must-haves on your list and we are lucky enough to find a home that has seven of your desired features, I consider that a big success.

Let me help you find a home that’s just right for you!  Call or text me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Looking to buy your first home in Spruce Grove, Stony Plain, Parkland County or the Edmonton region?  The provocative question in the title of this blog entry is the opening line  of “Strategy for first homes“, an article from the January 28, 2012 edition of the Edmonton Journal (reprinted from the Financial Post).

The Canadian RRSP allows tax-payers to save money for retirement while getting a break on taxes.   Once withdrawn, taxes must be paid, and the amount can never be put back into the RRSP – with one exception.  First-time home buyers needing money for a down payment are allowed to borrow up to $25,000 (tax-free) from their RRSP funds, and they have up to 15 years to repay the amount.

But!  After reading the article, first-time home buyers might think twice about doing this.  The article explains with specific examples the permanent financial blow this deals to one’s retirement fund and subsequent retirement income.  Because the RRSP contains pre-tax dollars, the potential earning power of this money is greater than funds saved in other ways, and the loss of earning power is therefore greater also.  Loss of growth in one’s savings for retirement might be at least partially off-set by savings occurring from having a smaller mortgage, but prospective home buyers will need sharp pencils to calculate if this works for them.

Read the full article to see if this strategy is the best choice for you.

I work with mortgage brokers who can help you figure out the best way to get into the house you want.  Call me today at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Most people considering the purchase of a home, whether in Spruce Grove, Stony Plain, Parkland County, the Edmonton region, or elsewhere, get around to asking the important question:  “Is now a good time or a bad time to buy a home?”  It sounds flippant or evasive if I respond with “Yes” or “That depends”, but both answers are correct!  For most people, buying a home is one of the most significant events in their lives, and it naturally comes with many positives and negatives based on individual situations.  Once people have made the decision to invest in a home, the best time to buy becomes “now”, no matter what the market is doing.

But the market at the moment in the Edmonton area is making the decision to buy much easier.  An article in the January 5, 2012 Edmonton Journal entitled “Real estate market healthy, agents say” contains some very encouraging news.   In spite of crises elsewhere (Europe’s money woes, the US housing market), prices and sales in our region remain steady.  The article quotes a statistic from the Realtors Association of Edmonton:  the average price of homes sold through MLS in 2011 was $325,457.  This is down slightly from $329,019 in 2010, but prices are not undergoing the wild swings we’ve experienced in the past or the ups and downs felt elsewhere.  The article also points out that 827 properties were sold in December 2011, compared to just two more the previous December.

Is right now, just after New Year’s, a good time to buy?  Sure, why not?  The article mentions that the market usually picks up in the summer, with April and May being peak months, but there is always an inventory of homes waiting for the right buyer, and the current market stability, combined with continuing low mortgage rates, all suggest the time is never better!

I’d love to help you find that perfect home!  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here.