A new report from TD bank suggests that Canadians are upgrading their homes- more quickly and more often then they intended.
The TD Canada Trust Repeat Home Buyers Report found that seven-in-ten Canadian repeat buyers were moving before they had planned (42%) or had no stated plans of moving are now looking (27%). Further, the number of people that said that they plan to buy a home that is not their first in the next two years went up by nearly ten percentage points over 2010 (74% versus 65% in 2010).
“Our research indicates that Canadians don’t stay in one home too long,” says Farhaneh Haque, Director, Mortgage Advice, TD Canada Trust. “Before making the decision to move, explore all your options and ensure that your new home will suit your changing needs and lifestyle. It might be more affordable to renovate and make your current home work for you.”
Looking at features and amenities, many Canadians have learned from experience apparently, and are not willing to negotiate on some items this time around.
The report says, “The top five features that Canadians felt they compromised on when they purchased their previous home that they are not willing to budge on this time are price (34%), layout of home (33%), features of home (31%), garage or sheltered parking (30%) and number of bedrooms (28%).”
They suggest too, that moving is not always the best solution for people to get the homes that they want. Renovation is a good, often less expensive option.
Canadians too, according to the survey, believe that the time is right in the market right now- both to buy and to sell. Many of those selling feel that they will get asking price- or even more.
Haque points out though, that if properties are likely to sell above asking price- then buyer will likely have to pay top dollar to get the property they want: “Buyers should keep in mind that if they are expecting to sell above asking price, it’s likely they will need to also buy at above asking price. A home is, obviously, a very big purchase – especially if you will not be selling your previous home to put towards the cost. A mortgage expert at your bank can walk you through your financing options and show you strategies and products that may save you money and provide flexibility over the course of your mortgage.”