Never bought a house before? Follow these 10 tips and everything will work out fine.
1. Buy Smart The First Time - You can take advantage of whatever kind of market you're buying into by carefully choosing your entry point. That might mean waiting until prices drop in the winter or holding on just a little longer until the right property comes along at the right price.
2. Tap Your Network - You might be new at this but your family, friends and co-workers probably aren't. Ask them for both advice and referrals of lawyers, home inspectors and other professionals - the more, the better. Real estate markets are notoriously local, so local information is vital. For additional advice/information contact Adam Humenuik (261-2470) your local REALTOR®.
3. Prepare, Prepare, Prepare - You will likely have to make the most important financial decision of your life very quickly in a matter of days, hours or even minutes if there are multiple offers. But you can take much of the risk out of this snap decision by working out ahead of time exactly what you need, the extras you'd like and what you can afford.
4. Have The Deposit Ready - When you find the home you want, you need to put down a deposit, usually within 24 hours. So don't have it in a bond fund or a promise from Mom and Dad. You need it in a cash account, and easily accessible.
5. Tally All The Costs - It's not just the mortgage you have to factor in. It's taxes, utilities, garbage removal and insurance. Plus count on spending 1% of the purchase price each year, averaged over time, for maintenance, ranging from duct cleaning to a new roof. Then ask yourself, can you still take a hit when the furnace conks out?
6. Leave Money For Renos - Don't max out your financing just buying the property. Set aside money - or at least a plan for saving money - for the things you want to do to the place. Don't spend most of your life living in someone else's place, make it your own home.
7. Look Over The Fence - As the old adage goes, it's better to buy the worst house on a nice block than the best house on a run-down one. That's because you can improve your own home, but you have no control over your neighbours. Like it or not, they will have a big impact on your property's value.
8. Take Advantage Of Tax Breaks - Saskatchewan imposes a property transfer tax on all properties (except for rural properties). However, they will waive this tax (or at least part of it) for first time home buyers. The Federal Government also introduced a First-Time Home Buyer's Tax Credit in 2009 that allows you to save up to $750 on your income taxes. Then there is the Home Buyer's Plan, which allows you to "borrow" money for a down payment from your RRSP tax-free. Make sure to explore all your options to make the most of these first-time-buyer savings.
9. Keep Your Emotions In Check - It's easy to get infatuated with a house or condo, but love can blind you to problems identified in the inspection and other red flags that arise. Buyers who engage in a bidding war sometimes end up paying way more than they planned to, simply because others wanted their home of choice, too. But as long as your don't get carried away, once you move in, your misgivings will dissipate as your enjoy your new home.
10.Relax! - Assuming that you make your regular mortgage payments, owning a home will not change your life all that much. (In fact, mortgage lenders will forgive a late payment every now and then without penalty, which is more than you can say for many landlords). While rent tends to increase over time, fixed-rate mortgage payments will stay the same. So relax and enjoy; your home will likely never cost you more than it did the month you moved in.
For additional information and advice anytime, please feel free to contact your local REALTOR®:
Adam Humenuik - REALTOR®, B. Comm
Hallmark Realty
306-261-2470www.SaskRealEstatePro.com
Adam@SaskRealEstatePro.com
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