With the price of homes rising every day, many people are finding it difficult to purchase a new home. However, purchasing old homes that need repairs is a plausible strategy that can help you to get your dream home at reduced rates. These homes are usually referred to as fixer uppers, a term that clearly describes a property that ought to be reconstructed, redecorated and or redesigned to improve its status. Even though this kind of property can be occupied in its present condition, renovating it is likely to improve its value and make it more comfortable.
With the introduction of the purchase plus improvement program, there is no doubt that many people are going to afford homes. The program is offered by Genworth Canada and CMHC, two popular residential mortgage insurer in Canada. It gives the new homeowner the opportunity to carry out tailored improvements and renovations immediately after occupying the home. If you intend to purchase a fixer upper, the purchase plus improvement program is now your bridge to success.
The program is applicable for existing resale properties as well as residential houses that are already in the market. The dwellings have to be located in areas or markets that have a higher resale demand. Only properties with a remaining economy life of approximately 25 years and below are eligible. The maximum number of units allowed is four and one has to be owner occupied. In addition to this, new constructions that have a warranty are also eligible.
The purchase plus improvement program has come at the right time when the demand for houses is high causing the prices are escalating. It is a good opportunity to raise the potential value of the property either for the buyer to occupy it permanently or resale it later at a higher price. The program is increasingly becoming popular in Canada making newer homes to be available at low prices as more buyers shift their focus to fixer upper properties. The program is aimed at giving aspiring homeowners who have low down payments the chance to afford mortgages at reduced interest rates.
Nonetheless, buyers are advised to scrutinize the property before they can enroll for the program. The thorough examination will give buyers the insight about the cost of repairs that should be done in order to make the home livable again. In essence, there are many fundamental factors that inexperienced buyers tend to ignore. They include the factors such as the foundation of the home as well as the plumbing system. These can be invisible and in the end, thy will need a lot of contracting work that can be costly.
Indeed, it can plausibly be argued that homeownership is a now easy to access because of the introduction of this type of program. It is time to take advantage of this program and acquire a home that will only need few repairs and renovations to make it look as good as new. To find out if you are eligible for the program, visit our online application for a FREE pre-approval.