HOME BUYING TIPS
HOME SWEET HOME
A home is more often than not, ones greatest expense in life. It where we spend the majority of our time and becomes our pride. Buying a home enables us to have full customization-worry free of landlord’s controlling what we can and cannot do to our place. A home provides comfort, security, and is the greatest investment one can make.
THE BEST STOCK MARKET
Canada, especially as of late has seen homes appreciate substantially in the last few years. This is the perk of purchasing a home, you get to see your net worth grow. It is a physical investment, unlike stocks or bonds. You are in control. It should also be noted that in Canada principal residences are exempted from capital tax gains
By paying a mortgage, part of that payment is utilized towards your principal balance of your home alone. Therefore instead of watching your rent money empty your pockets, you can buy a home and pay your mortgage and see some of your money come back to you. It is the best savings plan there is as you get to enjoy the comfort and security of your savings plan while saving.
DECIDING IF YOU ARE READY TO BUY
Buying a home is a huge financial commitment, and you first must evaluate if you have the resources to make such a purchase. If you have your money tied into other commitments, maybe a home isn’t something you should be looking for just yet. It is recommended that at least 5-10% be saved for a down payment, but ideally more. The more you can put down at the start, the better off you are.
Another thing to take into consideration before buying a home is your lifestyle. What type of career do you have? Will you be travelling lots? Is this home going to be a place you are planning on staying in for some time? Buying a home is very expensive, and other factors are added on top- such as moving expenses. These are additional expenses that you do not want to deal with frequently, and if your life is not yet completely stable, maybe a home is not yet your best option.
FEATURES TO KEEP IN MIND WHEN LOOKING AT HOMES
- How many bedrooms and bathrooms do I need?
- Do I need a garage? One-car? Two-Car?
- Will I need bedrooms for children?
- Where is the home located? Is it convenient for my job and lifestyle? Will friends and family be close by?
- Is it a noisy neighborhood?
- Are bus routes close by? Schools? Libraries? Parks?
- Will the home require any improvements?
- Do I need to replace the appliances?
- How much are property taxes?
- What do monthly bills cost on average?
- Is it a high crime area?
- What is the economic outlook of the area?
HOME PURCHASE EXPENSES
- Down payment
- Legal Fees
- Home Inspection
- Service and Utility Hook-up expenses
- Moving Expenses
- Appraisal Fee
- Water Quality and Quantity
- Condominium Fees
- Property Tax
- Mortgage expenses
- Land Transfer Tax
- Property Insurance
- Mortgage Loan Insurance
After reading this you should have an idea of what goes into buying your first home. The expenses listed above are the major expenses, but definitely not all of the expenses that you may face. Don’t be overwhelmed by it all- embrace it, as this will be the greatest purchase you ever make! If you would like to take the next step, check out our choosing a REALTOR post, or you can fill out this form and we will have an agent contact you within 24 hours.
This checklist should get you on your way to purchasing your next home and for some other helpful links be sure to check out our article on making an offer and preparing for the big move.