Getting Ready for New Construction Homes in Penticton
At the end of 2023, the Okanagan Valley’s largest real estate transaction was completed right here in Penticton BC. A 10-acre property on Government Street, located across from the Penticton Regional Hospital, has been sold to developers. Backed by an $800-million investment program, the industrial property will become a mixed residential-commercial epicenter. It’s welcome news to current and future residents along with business owners who have grown tired of the uninspired industrial zone. This development will forever change the landscape of Penticton, and for the better. Over the 10-years to completion, it will drive population growth, bolster tourism, create new jobs, and foster an even stronger sense of confidence that Peach City is the place to be.
This news has sparked interest from first time buyers. This interest is not just in about condos that will come up within the 10-acre property. First time buyers can see the forest for the trees, knowing that a rising tide raises all ships. Property values are expected to increase in the neighborhoods surrounding the development, and to a lesser extent for homes across the city. Are you among this group of future buyers? If so, you may not be ready to get a mortgage today, but you realize that it’s time to get the ball rolling. How can you start preparing so that you’re ready to invest in a once in a lifetime opportunity in the year or years ahead? Read ahead to find out.
2 Important Things Future First Time Buyers Need to do Today to Take Advantage of New Construction Homes in Penticton BC
Start a First Home Savings Account (FHSA)
Introduced by the Government of Canada in 2023, the tax-free First Home Savings Account (FHSA) was launched to help first time buyers afford to buy a property in spite of Canada’s competitive housing market which has driven up home values. The FHSA is a registered savings account that will allow you to contribute up to $8,000 a year to a lifetime limit of $40,000 – for which you can apply as a downpayment on a new home. Contributions made to the FHSA are tax deductible and your withdrawals are tax-free. Any investment gains are also tax-free. There is no consequence, only benefits, to be had for first time buyers who want to prepare for new construction home opportunities in Penticton BC. Here is everything you need to know about the FHSA.
Partner with a Broker
Whether you plan to buy a recently built home in 6 months, a year from now, or longer, it’s a wise idea to partner with a mortgage broker today. The reason that this is so important, is that a reputable broker increases your buyer power. They accomplish this via the following:
- Connect you to first time buyer incentive programs that will reduce your downpayment requirements.
- Provide you will access to lower (compared to marketed rates) variable and fixed mortgage rates.
- Can connect you to alternative private lenders that may offer better terms than Canada’s big banks.
With increased buying power, you may find that you can afford to buy a new construction home sooner than expected and/or buy one that is in a higher price range than you initially anticipated. View more about these benefits of a mortgage broker for first time buyers.