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Renata & Ziggy Trawinski
IQ Real Estate
Buying & Selling, Calgary, Alberta
P: 403-208-2368
F: 403-776-6075
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Thursday, March 10, 2011 - Buy now or wait

Even a slight increase in mortgage interest rates can offset a significant drop in home prices. There is little to gain and much to lose by waiting to buy in the current Calgary's real estate market where home prices rebound and interest rates are to go up. Many clients want to wait hoping the prices will decrease. Consider the following scenario assuming the prices go down (not likely) and interest rates go up (very likely):

Buy now scenario: Home price $430,000 Interest rate 5% Monthly payment $2,180.13

Wait and buy scenario: Home price $408,500 Interest rate 6% Monthly payment $2,308.36

See how even though the price of the home went down by 5% ($21,000), your monthly payment has increased due to a 1% increase in mortgage interest rate? In reality both the price and the interest rates will increase in Calgary's market. Hence, waiting will cost you money. Call us to today and let's start looking!
 

posted in Real Estate News at Thu, 10 Mar 2011 20:34:48 -0700



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