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Waiting To Buy A Home in Wasaga Beach, Collingwood Or An Investment Property In Barrie? Fixed Mortgage Rates Are Creeping Up

Money is still cheap to borrow

BUT fixed rates are moving up. 5 year rates are now at 4.3%. The days of below 4% “seem” to be over. Now is the time to refinance or buy a new home or investment property. Real estate in Wasaga Beach, Collingwood and Barrie is not dropping in price. For the buyers who were taking a wait and see position on prices, well you have waited, missed the lowest interest rates and seen prices NOT fall.

However it is still a buyers market and there are more listings than buyers. In my experience activity is increasing and a more “balanced” market may be here sooner than later.

2 months ago in Barrie near the GO station there were several homes at $200,000 than made great buys as income generating properties. Currently there is nothing under $219,000. I have clients itching to buy but we are waiting for the right deal and ready to make an offer as soon as the listing hits my desk.

The numbers still work:

On a $200,000 home with 10% down, the mortgage payment fixed for 5 years is $868 per month. Add on $250 for property taxes and insurance and the total outlay is $1,113 per month. Rental income will be $1,250 to $1,350. A very nice positive cash flow

First Time Buyers: buying a home makes tremendous sense at the moment for the very same reason it does for investors. At the risk of repeating myself “money is cheap to borrow and its a buyer market.” Don’t miss the boat.

This entry was posted on Tuesday, June 23rd, 2009 at 9:36 pm and is filed under Financing, Investment Opportunities. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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