On Calgary Home Prices and Income Bracket

One of the most important matters that many home buyers struggle with is maintaining a monthly payment that doesn’t take a huge chunk out of their income. In booming cities like Calgary, the line between home price and income rate are getting wider and wider as home sales improve as the months pass, resulting in many people looking to resell their property to keep up with expenses.

While figures for median-priced houses for sale in Calgary are trending up, real estate pundits are wary about a widening gap in housing prices and income, which will eventually make it harder for working professionals to own homes. Experts opine that should this trend keep up, people might have to opt for rental instead.

Affordable Calgary homes may have dipped somewhat but overall in Alberta, the province's affordability position hasn't turned people away. For first-time home buyers in Calgary, however, saving for a down payment can increasingly become a difficult barrier. No matter the obstacle though, people with big aspirations will naturally just keep looking for the home of their dreams.

Lending institutions subscribe to two simple affordability rules: First, your housing costs shouldn't go beyond 32% of your gross monthly income. It's called the GDS (gross debt service) ratio. Second, your debt load shouldn't be more than 40% of your gross monthly income. This covers housing costs, car loans, credit card bills, among others, and this is your TDS (total debt service) ratio.

Calgary’s Housing Market Greets 2014 with a Bang

Real estate values and rates are often considered as one of the main contributing factors that determine a community’s economy and in turn, its potential for excellent home purchases that won’t go anywhere near bleeding the prospective homeowner dry of his funds. In this case, there’s little doubt that Calgary, Alberta is definitely one of the “it” places to buy a property this year, finance-wise.

A population surge, notably the in-migration of Ontarians due to the influx of available jobs in Calgary, is driving the city's economy and animating its housing market activity. Reports on Calgary’s real estate market reflects a spike in both sales and home prices—a huge jump compared to last year. Home prices have beefed up because of tight inventory and a close-to-zero vacancy in the rental market.

However, while the prices yield a strong showing in favor of Calgary's housing market, industry trends suggest that if new listings continue to surge relative to sales activity (with demand overwhelming supply), prices will soon to level off after a time. In any case, it won't hurt to “strike while the iron is hot”, as they say. Deal your property aces by getting in the forefront of news and activities through reliable resource channels today.

Condo Ownership: A Step Towards Independence

Nothing screams financial independence like owning property. For young professionals, this property will likely come in the form of a condo unit. Most condo units are spacious and comfortable for young, single professionals, giving them a place to call their own. With more and more young people looking to purchase their first condo, here are a few tips you must know before buying a condo unit with your hard-earned money:

As with any real estate property, a condo's location is very important. Is the condo you're considering near that mall you like to frequent? How far is it from your office? These are only a few questions you need to ask yourself when considering a unit. In addition to this, visit the neighborhood of the condo building during different times of the day, both on weekdays and weekends, to get a better feel of the neighborhood you might move in to.

Aside from the price of the condo itself, ask your potential neighbors if there are any homeowner's association dues that need to be paid and how much these dues are (if any). This prevents any surprise expenses when you move in.

Lastly, consider the resale value of the condo. Eventually, you may want to move out of this initial purchase. Try to find out the resale value of the condo or how much money would constitute a fair amount of rent.