Realosophy Team in Realosophy News
It's a strange time of year - and it's not just the undecided weather. While the release of monthly job stats and revised forecasts (look downwards) serve as reminders that the economy isn't going to improve any time soon, home buyers are out looking for bargains and bidding wars are making an almost incomprehensible comeback in Toronto.
To respond to this extraordinary time, Move Smartly bloggers John Pasalis and Urmi Desai have pulled together the 2009 Defensive Home Buying Action Plan - a consumer-focused approach to making sense of the current real estate market.
The Plan has two objectives: to help buyers determine whether or not they can buy safely in the current market and to help those that can buy protect their investment. Fortune hunters be warned - it's not a 'get rich quick' real estate guide, it's more the 'how not to lose your shirt' variety.
With falling house prices to take advantage of and life changes resulting in the need to move, it's still the right time to buy for some - and savvy buyers can make educated moves to reduce risk and produce positive outcomes. But first, it's important to determine if you should even be thinking about buying right now.
The Action Plan highlights three signs that you may not be ready to buy in today's market:
1. You are vulnerable to job and/or income loss - sounds obvious but given the complexity of the economy today, you need to think carefully about whether you may be affected.
2. You won't be able to stay in your new home for at least five years - in a slowing market, it is critical to ensure that you don't have to sell too early for foreseeable financial or lifestyle reasons.
3. You don't have a down payment of at least 5% - even though banks have become turtle-like in their quest to avoid risk, the 'zero down' mortgage is still out there, tempting many to put their financial health at risk.
Download the 2009 Defensive Home Buying Action Plan to learn how to proactively address these risks and learn more strategies for keeping safe in uncertain times.
April 24, 2009
Market |