101 Series: Tips for Vancouver Women Home Buyers – Ask Bruce Coleman, Vancouver Mortgage Broker
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Tips for Vancouver Women Home Buyers
Many new Vancouver home buyers are not only single but they are also highly paid professional women. When it comes to buying a home or condo, statistics reveal that in Canada single women not only make up as much as 20 % of the market when it comes to new home buyers, it also turns out that as many as 40% of this group are first time home buyers.
Without a doubt, real estate has become one of the hottest ways that many people have chosen to invest their money. With low interest rates and appreciating property values, a real estate investment can be substantially profitable.
Between, paying down the mortgage and despite the odd dips in the real estate market, property also generally appreciates over time. The amount of equity that you build up over the years can be a substantial plus when it comes time for you to retire. So, if you’re a single woman with a well-paying job, then why not consider investing in real estate?
If you are thinking of investing in real estate then here are a few tips to help you get started in the right direction.
Plan for the Future
Buying a home or condo should be considered as a long term investment. In most instances, you would likely have to reside in a home or condo for at least a minimum of 3 years just to break even during a robust real estate market.
The reason is that many new home buyers neglect to consider the amount of extra cash that you require for closing costs. Closing cost can range anywhere from 1.5% to as much as 3 % of the purchase price of the real estate property you are buying.
For this reason, you need to take a good hard look at your current professional career and what you predict will happen at least 5 years down the road. If you think that a transfer to another city may occur in the not so distant future then you should consider all your options before you buy.
You might decide to wait or even to use a property as rental income and hold onto it as long term investment even though you don’t continue to reside in it. So, clearly you need to some serious planning before you make such a substantial commitment to a real estate investment. Plan well and take some time to perform some valuable research before you take the plunge.
Get your Credit in Order
One of the key factors used by lenders when it comes to approving you on a mortgage application is your credit worthiness. Lenders want to know how well you pay your debt and how much debt load you are currently carrying.
You also want to be absolutely certain that you can comfortably handle the debt you incur. Although mortgage interest rates are still pretty low, they are slowly rising. Even a few small increases in rates can impact your budget when it comes time to renew your mortgage.
Also, and if you can possibly manage it, you also want to try and have a 20% down payment saved up for the property you want to buy. If you have less than a 20 % down payment then you will also be required by the lender to obtain mortgage insurance which is an extra cost above and beyond your mortgage payment.
Real estate is a great investment, especially if you’re a single professional woman who’s looking to invest but make sure you take the time to perform some research and do some serious number crunching before you commit.