HomeShould a 29-year-old buy an apartment now or wait for prices to drop?

Should a 29-year-old buy an apartment now or wait for prices to drop?

To all aspiring homebuyers who want low prices: At what point will you feel comfortable entering the market?

The average resale price for homes across Canada has fallen from its peak in March, which is good news for young people struggling to build down payments and afford their monthly mortgage payments. But a final question from a reader offers insight into the predicament buyers can find themselves in as they watch prices drop.

This reader wrote: “My 29-year-old daughter has enough for a down payment on an apartment in the Greater Toronto Area and can handle the associated payments.” “Is it worth buying now or waiting for home prices to fall in the hope of the near future?”

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Here’s a question to ask if you or a loved one is wondering whether to buy a home now or wait for lower prices: Would you feel bad if you bought now and the price of your home went down, or if you waited and prices ended up going up instead of falling as expected?

Housing is difficult to predict now. Sure, the market has cooled off from the height of the spring fever, but it could easily rebound again when immigration has fully resumed and the economy is on pace. Measures promised by the new federal government to improve housing affordability could also help stimulate sales.

Another thing to consider is the possibility of mortgage rates rising from the very low levels today. The benefits of a lower home price can be eliminated if you have to pay a higher mortgage rate. Yields in the bond market set the tone for mortgages and have been rising lately.

Strategy to buy an apartment now: find a unit you really like and want to live in for at least five years, and try real life ratio To make sure you can afford it. Make your payments, build your stakes and live your life.


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Rob’s Personal Finance Reading List

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My wife was surprised at the cost of butter at the last grocery store. It turns out that butter is just one of many food products, according to one source More price increases From what we see in the official inflation figures.

Stop buying plastic wrap

Bee’s Wrap is a sustainable food wrap that can replace both plastic wrap and foil. Save money, reduce waste. Here Review how well it works from CNN.

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Blogger called The Dividend Girl about how it works Changed her investment accounts To the direct mediation of the National Bank as a result of the broker’s recent move to abolish commissions for trading stocks and exchange-traded funds.

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I’ve probably eaten three grilled cheese sandwiches in my life, but my sense is that most people love it. Here are some tips on how to make a file Best grilled cheeseIntroduced to help you get the best value for spending on groceries and perhaps exchange a home-cooked meal for something more expensive than a restaurant.


ask rob

s: Teens are only allowed to open an investment account in the United States specifically Online brokerage. Why is Canada taking longer to allow teens to open their own investment account? My 16 year old daughter works. She would like to invest.

a: I have not yet seen any payment for brokers in Canada to offer investment accounts. some parents Open accounts in their name And work as a team with teens to manage them or let the teens make all the investment. This is a recent column I wrote on some Finance lessons for teenagers Which is more important than how you trade stocks.

Do you have a question for me? Send it my way. Sorry I can’t answer each one personally. Questions and answers are edited for length and clarity.


Paycheque Project: We want to hear from you

The Globe is looking for young adults to participate in its salary profile series. It’s a look at how young people in Canada spend their monthly salaries, how they pay for housing, food, transportation, family items, and yes, for fun. No judgment, just facts. This is a recent profile From two tenants he earned $65,000 and opened a live trading account when the pandemic started. If you’d like to share your story, contact Globe Personal Finance Editor Roma Lucio at rluciw@globeandmail.com.

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Today’s Financial Instrument

HR consulting firm Robert Half has created a guide to what to expect starting salaries In a wide range of jobs and cities. Lots of people are moving around in the workforce these days – here are some guidelines on how much you should be earning.


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A good song often generates some noteworthy songs. Here some misunderstanding by Jane Clark, with versions Erin Ray And Save lives. Now to Marisa Nadler I can’t listen to Jane Clarke anymore.


Tweet of the week

Ramit Sethi, one of the top personal financial voices in the US, explains why he doesn’t endorse Teaching personal finance to children In high school.


ICYMI

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