As this year's real estate season gets set to take off, we talk to the experts to see how house hunters should prepare.Many people who were prescient enough to buy a house in Toronto at this time last year are likely spending the opening days of 2010 exulting and revelling in cheap money.
Meanwhile, if you spent last year scratching up a down payment with the hope of buying a house or condo in the coming year, here are a few key things you need to know:
1. Brace for higher interest rates...prospective home buyers will rush to beat the possible tightening of interest rates that may begin in July.
2. Anticipate an HST flurry...buyers will hustle to complete a deal before the tax is implemented.
3. Choose whether to sell first or buy...buy first if you will be selling the kind of property that moves quickly – such as a house in a coveted location or a family-friendly home that “shows” well.
4. Look for a robust crop of new listings in the spring...a stronger-than-usual spring rebound in the number of houses and condos listed for sale is most likely.
5. Use timing to your advantage...The real-estate market in 2010 will likely be a tale of two halves; the first half will vibrate with activity while the latter half will settle down.
6. Focus your search...select a target Toronto neighbourhood before they set out for the first showing.
7. Learn the term “Debt-to-Income Ratio” ...The debt-to-income ratio is defined as the percentage of a consumer's monthly gross income that goes toward repaying debt. This is one of the tools that lenders use to determine your ability to repay a mortgage.
From Friday's Globe and Mail Last updated on Saturday, Jan. 16, 2010 3:49AM EST
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