The strength of the Canadian housing market seems unstoppable at this point based on stats that keep showing steady increases in terms of costs. We know the demand is there, supply is questionable depending on what area you are in. One thing is for certain though, here in the GTA, it is no secret that our real estate is expensive. However, as previously stated, the demand to live in the city is there. So what is the general population of home buyers doing? They are turning to renovations, buying a home that needs some slight interior work but will grow in value after the renovations are completed. The annual increase between 2000-2012 for purchased with intended renovations has risen 6%, compared to new constructions at 3%.
This popularity in home renovations and buying ‘fixer uppers’ are also what is aiding the market in steady increasing prices. This is because when you first purchase a home that needs work, the price is relatively low. Once the work is completed, you can sell it again for a significant increase and obtain much more than you spent on renovation costs (depending on the particular location).
Based on these findings, the purchase plus improvements mortgage may be right for you! Contact Robert Clancy today to find out if that is the way you should go!