Three years ago, there was a real boom in real estate in the state of Toronto. Our family who lived there took a decision to move out, and sold our town home. The result was a nice tidy sum, enough to pay off a previous mortgage, and give a good profit. The money we got from this sale enabled us to purchase a large house in Winnipeg. We paid in cash for a house that had four bedrooms in it and seemed to have plenty of character! The relocation and parting, though not very pleasant, was worth every penny!

Coming to the house itself, the property seemed almost double in size with a sprawling house in the center! If one could speculate how much such a house would have fetched in the Toronto real estate market, probably $300,000. And if it was renovated and placed in a popular location, the sale would have been close to $500,000. We had to shell out just $65,000 for this house as it needed some repairs. But with the estate prices going up by 20% year after year, should we decide to sell it, our profits are going to multiply manifold! Yes, a few repairs had to be carried out; some are still pending. Our plans include installing a brand new hardwood flooring for the entire living area. Whatever it may be, these are just minor problems, considering the size of the house and how less we paid for it!

Recently I was browsing Toronto real estate listings, just to keep an eye on how the market is doing. I was shocked to realize that there are virtually no actual houses available for sale, regardless of condition, anywhere in the Toronto real estate market, for less than $250,000! I couldn’t believe it. Anyone looking to buy in a lower price range is left to choose from townhomes and condominiums. There are no longer any affordable houses in the City of Toronto, regardless of neighborhood, condition or amenities.

All the more reason for joy, when I learnt about this! The relocation has come at the right time! Winnipeg does not have a gridlock through which to battle for office goers. Since situations are better, people do not succumb to road rage. People can still afford to buy houses, as they are below $100,000. Even the neighborhoods offer a choice. Home owners can benefit from the many incentives offered by Manitoba Hydro. A person who buys a fixer-upper can install highly efficient furnaces plus new windows. The interest rates are reasonable on loans. There are also town homes and condominiums for sale. Additionally, compared to Toronto, the maintenance fees are but a fraction over here.

Toronto real estate prices drive people away; Winnipeg prices and conditions attract people. Thus, anyone will find this a place to be comfortable in.

We have now made Winnipeg our home, probably for good. Yes, we miss our friends and family, but we still find ways to keep in touch and see each other on a regular basis. Our family is much happier with our slower pace, the kids love having so much space to run around, and we feel like we’ve made a smart decision for the long run.

It is not a matter of flipping a coin when deciding whether to buy or rent a home. There are a lot of things to think about. Make sure you compare your income against the local market when you make your housing decision.

Even if you are considering buying a dream home, you can always ask if you have the option to rent until a later time. Financing is what determines whether you can afford to buy or rent. What are some of the expenses when owning a home, as opposed to renting? In a nutshell, this always will be the main determining factor between the two.

There are several optional points when considering buying a house. Buying a house will put you into a more permanent community, than a rented complex. This essentially means that you are a part of the larger consciousness. Communities are collectives.

It isn’t easy living up to such a high standard of owning a home, especially in a neighborhood full of other people who own homes as well. It is assumed that you will maintain your yard according to neighborhood standards by keeping the lawn mowed and the landscaping freshly cut and sculpted. In your new house, you won’t have to abide by anyone else’s rules. Your neighbors will expect you to follow the community rules. In other words, you will either have to maintain things on your own, or have to pay someone to contract it for you.

You do have the freedom to garden the way you like and choose the landscaping and plants that you desire. Your own personal tastes should be expressed. The neighborhood gallery will allow you to be the artist you are. As long as you are not an abstract artist that loves to copy Jackson Pollack’s masterpieces, you are safe. A rented community does not take precedence over traditional measures.

Being concerned about the outside appearance of your home is of no concern to you if you are renting. You don’t have to worry about it. In fact, you probably do not have a choice in this matter. Often times, you do not have a choice of the inside colors of your rooms either. You do not always control these decisions. You rent your home or apartment. These decisions are may for you by the owner or management company.

When you pay rent, you need to come up with the first and last month’s rent as part of a deposit agreement. In most cases, you sign a lease to stay for a determined amount of time, move in and leave the rest to the owners. They provide the maintenance for you as part of the leasing agreement. When you rent a home or apartment and your garbage disposal, or toilet breaks down, the management company, or landlord ensures it’s repaired.

Owning a home requires the owner to be responsible for maintenance and upkeep. You won’t be responsible for the upkeep in you rent a home. The homeowner assumes the responsibilities that come with owning a home.

However, home owners do feel more stable. The home is yours. You invest the effort and you get the return for your investment. If you are lucky enough to own a home then you should have a good feeling of having something that belongs to you. Your domain is truly your own. With renting, this feeling and security is at best a temporary fix, a band-aid on a temporary situation that, ultimately, you have no real control over. The rent can go up, then you have to pay it, or move out. You can also become evicted. When you are renting, you don’t have a say in these decisions.

The mortgage market has changed but for many, it has gotten better. Most folks don’t know this. Interest rates have come down. Tell your friends and neighbors and be happy. Now, for those of us currently without jobs, or those that have some credit issues and no money down, the approval requirements have become a bit stricter as they should. On the flip side, new first time buyer programs have evolved that are absolutely fantastic and even offer below market interest rates. Even with all these good things happening, we find that there are many folks out there right now paralyzed by the negativity of the press. We term this analysis paralysis! Folks want to buy or refinance a home, or investment property but are scared. They don’t realize how good we have it here, especially in the RTP area which is really a bright light in the USA right now. This is a great market here. People think “I am not sure I want to sell my home right now but I really do want to buy a new home..” They may not really realize they can buy that bigger home and get a really good deal on the next house and the mortgage right now. The home they are buying is more expensive than the home they live in currently, this can be a good leverage advantage. The other thing to consider here in the RTP area is consider keeping your home, renting it and buying another home. We do have a strong rental market here. Don’t be too fearful of making a move, if you wait until everyone else makes a move, then the laws of supply and demand kick in and prices go up as demand goes up.

Here is more good news; Mortgage rates really have come down quite a bit. Most folks are not aware of this at all. Mortgage rates are at 12 month lows. It is a GREAT time to refinance, look at mortgage options and get out of adjustable rate loans. Many families are considering equity repositioning and taking cash out of their homes to buy other properties and taking advantage of the real estate market. Many investors are sitting on the sidelines waiting to pounce on every good deal they can get their hands on. There have been some excellent new loan products that have come out in the market, particularly for first time home buyers to help them get into homes. Here are a few: down payment assistance programs, bond programs with below market interest rates, programs that are 100% financing with no mortgage insurance (even if you are not a first time home buyer)! Folks are just not aware of this good stuff because the media is showing more bad things than good things right now. This scares people. Have the courage to step outside of what the press is telling you and examine what our geographic market offers. It could be huge opportunity for you.

What has changed? You want to know the facts:

1. If you have credit issues, it will be more important now to get a formal preapproval with a lender that you meet with. Allow your mortgage planner to help you get a better deal/rate by helping give you tips to increase your credit scores. We do this at no cost for our clients. Look for our credit improvement workshops on line.

2. No doc loans- These are loans where no income or no assets are verified. These have become much tougher to do in the current mortgage market. If you need this type of product, talk to a certified mortgage planner in advance of purchasing.

3. When buying investment property, you need to put down approximately ten percent. There are no PMI options only with 10% down. This is a good thing and makes more of the payment tax deductible.

4. As with all things in our world, business cycles as does everything. This is normal and expected and necessary. We as lenders are not giving zero down loans to folks who do not have enough income or who do not have decent credit any more. It is my opinion that the mortgage market was in a way a microcosm of our economy. The market was/is looking ways to make money and just became too lenient w/ some practices. This is why the mortgage correction happened. This is a natural cycle and happens in every business. For the many of our customers there is a big opportunity to buy now. We are in a great market and many families are finding ways to take advantage of moving up, renting their existing homes and cashing in on these low rates. There is a lot of information on Real Estate Investing as a wealth building tool and you are welcome to check our website for upcoming workshops.

Talk to your real estate agent about your current situation they are great partners and can give you an accurate idea about both your current property situation and your new property scenario. They know the market better than anyone.

While there are multiple reasons for the current mortgage crisis, part of the responsibility lies with borrowers who bought homes and acquired mortgage financing they couldn’t really afford. The result has been many people hurting themselves, and in a classic ripple effect, harming the entire global economy.

Thankfully, people who are buying a home now have the opportunity to strengthen our long-term economy and protect themselves by considering and acting on good financial advice. One of these key pieces of advice is to live within one’s means. This is true whether buying a home or choosing what to eat for dinner.

Heeding the advice listed below can assist you in living withing your means, having greater peace of mind, avoiding foreclosure, and creating greater stability in the economy.

1.Don’t buy until you have a large enough down payment. It is still possible to obtain financing with small down payments, but it is wise to follow the traditional guideline of a 20% down payment. Doing so will decrease your debt and give you a smaller mortgage payment which translates into less financial strain and stress. You may have to wait to in order to pay a high down payment on your dream home but doing so can bring great rewards.

3. Save enough reserves. Mortgage payments are major expenses and it is important to have enough in savings to cover your payments should you become unemployed or have unexpected emergencies. As a matter of fact, most loans require you to have a certain amount of savings for this very purpose. By keeping at least three to six months of mortgage payments in a savings account you can keep your credit good and avoid foreclosure if a significant financial challenge arises.

3. Look at all the costs. In contemplating how much you can afford as a homebuyer, you need to consider the expense of furnishing, improving, and maintaining your home. How much will the couch, table, chairs, beds, etc. cost? Can you afford both the house you’re looking at and everything that will go into the home?

4. Consider all your debts. It’s important to add all your current debts (credit card debt, auto loans, payment plans) to the amount of your proposed mortgage loan. Will paying off debt take up more than half your income? After you buy your home, home much money will be availabe for savings, investments and just everyday living?

Following the above advice may require discipline and delayed gratification, but the greater safety and peace is well worth it. Additionally, you’ll be doing your part to prevent a future mortgage crisis.