Vehicle or House?

26. January 2008 by Kari Calder.

I recently got a call from a company out of Manitoba that was soliciting people over the phone to get them approval for financing for a new car. While this sounds great to young people, it is harmful if they plan to buy a home in the near future…or the next few years.

I ask myself about priorities when I meet potential Saskatoon home buyers only to find that some of them are up to their eyeballs in debt, but after this phone call I understand why people get themselves into this debt. Car companies can arrange for financing for almost anyone so it seems like a good idea at the time, but when you want to buy a home or a condo in Saskatoon and you have a new vehicle, your chances are much lower due to your GDS/TDS (gross debt service ratio and total debt service ratio). They don’t speak to you about how it affects your capacity to buy a house in Saskatoon. They don’t warn you that you may, for however long your car loan/lease is, have to rent a house or apartment in Saskatoon. And we are all aware in the Saskatoon real estate market that rental properties in Saskatoon are dwindling due to the condo conversion projects in the city over the past few years.

So, what is your priority? Somewhere to live in Saskatoon or a nice car to drive? A home to call your own in Saskatoon or a car to drive around in? If you are looking on my website or shopping for a house in Saskatoon, I guess I know your answer and good for you! Hopefully you didn’t fall prey to one of these easy financing traps that dealerships get you into and you can afford to buy a house in Saskatoon now!

If you are looking to buy a house or condo in Saskatoon or call your Saskatoon Realtor® or Kari Calder today.

Kari Calder
Saskatoon Real Estate Agent
Century 21 Conexus Realty Ltd.
www.karicalder.com

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