Even though the entire world seems to be in a recession, it could not be a better time to buy your first home and leave the world of renters. Housing prices have dropped dramatically, many foreclosures are available and interest rates are at an all time low. Renting may be slightly more affordable but you are ultimately throwing your money away.
First of all, the real estate bubble finally burst and this means nothing but good things for renters with financial liquidity. Sit back and watch as the market tumbles revealing unbelievable deals that only come available in a buyers market. Snatch up your dream home at a price that would have never been reasonable a few years ago.
Finally, even though it is doubtful that you will get a subprime mortgage, interest rates are currently so incredibly low, that even if you have to pay a little more than you planned for your upcoming home, the low interest rates should make your payments much easier to handle. To get the lowest rate possible, I highly recommend finding a mortgage broker in your area. Mortgage broker's scour the financial world to find you the best deal on a mortgage that fits your income and credit history. I used a mortgage broker when I bought my first home in BC and even though my credit history wasn't amazing at the time, he landed me an amazing rate that was substantially lower than my personal bank could offer. Ever since then, I've used a mortgage broker for all my mortgage needs and have always received interest rates far lower than the banks could provide.
Ultimately, getting into the real estate market is a long term investment. If you are trying to get into the market to flip, this might not be the best time to buy a house. However, if you plan on buying a house and making it your home you are ultimately investing in your future. Not only are you paying towards something tangible that will grow in value over time, you also increase your personal net worth and gain the pride associated with being a home owner.
In conclusion, many people are terrified to get involved in real estate because of the economic situation at hand. If you have financial liquidity and can afford a down payment, the deals that are currently available combined with the incredibly low interest rate may never be seen again in our life times. Take advantage of the recession and start building your future today.