A home owner can easily relate his or her fortune to the well being of the real estate market. The large gains in house prices as experienced by most Canadian home owners over the past 5 years will be tampered, as a more balance market will follow.
While prices may not decline like as happened in the US, UK and elsewhere, some moderation in home prices or even price decline may happen over the next few years in sectors that are experiencing over-supply of inventory.
For prospective first time home buyers, they will have more choices to look for homes in the area they want to live that meet their budget.
Benefits of Home Ownership
Homeownership offers the same benefits and advantages it always has. These include:
- The opportunity to build equity and create wealth over time.
- Protection from rent increases and security of living in a more permanent location
- Not having to deal with problems associated with renting from a landlord
- The pleasures of a home suitable for the family needs; garden/backyard, garage etc
- The ability to improve, remodel or redecorate to suit one’s own style and budget
- Possibility for home-based business and other lucrative income opportunities
- Pride of ownership and a greater sense of security and stability
Buying a home is only the first step in home ownership. The financial commitment will stretch over 25 to even 40 years. Most Canadian home owners are conscious of the cost of interest, and majority have the desire to pay off their mortgages as soon as practical.
There are ways for home owners to pay off their loans in 10 or 12 years. But, they have to be prepared and committed to working the plans to achieve their objectives.