1. Buying vs Renting House
The first question to ask yourself is ” Does it make sense to buy a home or should we just rent a bigger apartment?” Though the idea of purchasing a house in Thunder Bay may sound great, it’s always better to look into your financial condition before making any big decisions.
Another major decision you have to take is to decide whether to rent or to buy the place. It doesn’t just influence how much money you have left at the end of the month, it also impacts your lifestyle and the size of the savings you gather over the years.
Every day, people buy homes when economically they’d be better off renting because it’s crucial to them to have a place to put down roots and mainly because they see having a home as an investment that can grow and as a source of tax deductions. In the same way, people rent all the time for the mobility and very little responsibility it offers, even though they’d amass a larger net worth over time if they bought a place.
Of the two choices, the bias often veers toward ownership. It’s a wide business for everyone from mortgage lenders to real estate agents to home improvement stores, and so we are pestered with the message that being a homeowner is the key to happiness and part of the Canadian dream.
But owning isn’t generally better than renting, nor is renting always easier than owning. Think about the pros and cons of each to understand whether renting or owning is right for you.
Related : Know When to Rent ‘Em, Know When to Buy ‘Em
2. First Time Home Buyer Incentive (Something you should know)
In technical terms, the incentive is a shared equity mortgage. That is, the government of Canada will assist you in financing a portion of your first home without increasing your financial burden.
Basically, depending on the property type, the federal government will lend you a certain amount based on the purchase price of your home. This will assist first-time homebuyers in lowering their monthly payments while not increasing the number of their down payments. Furthermore, there is no interest, no ongoing payments, and no prepayment penalties.
The government will have a joint investment in the property with a shared equity mortgage. That means you both share the property’s ups and downs.
3. Job Security
The growth of the economy can develop employer sentiment. However, that does not mean that job security doesn’t weigh on the minds of those that are lucky enough to be working. How could it not? We are still suffering from one of the worst pandemics in human history. And don’t even get me started with the upcoming recession!
That said, the last thing you want to really think of when purchasing a home is job security. Doubt will almost certainly affect any prospects of buying a home. There is probably nothing worse than buying a home, only to find that you are jobless shortly after. So before you make a 30-year commitment to mortgage premiums, ensure that you are secure in your employment position.
Related: What is the minimum salary required to buy a house in Ontario?
4. Mortgage
Mortgage rates started off 2020 a little under 4%. Then they delved in March as COVID-19 became an epidemic in Canada, settling below 3.5% towards the end of March. in between the COVID-19 interruptions, it’s not easy to find a mortgage when you have a low credit score, you’re self-employed or you need a giant loan (a mortgage for more than $510,400 in most counties)
Resource: Use this Mortgage Calculator to get an estimate
5. Prepare a Budget that Includes all Extra Expenses
There are a number of additional costs involved in the possession of a home, such as utility hookups, new equipment, and moving. The moving costs always differ, with the average being $1,000. Utility costs for phones and electricity would fluctuate from $150 to $250.
The survey costs, title insurance, and appraisal fees should also be on top of your budget. One convenient tool would be to use a Mortgage Calculator.
6. Research before buying a flipped house
It is important to understand the process of buying a flipped house before making any decisions. Many people make the mistake of thinking that they can easily buy a home without knowing how it was bought, or why it was bought.
To ensure that you get your money’s worth and avoid any future problems, be sure to do your research first and make sure you know what type of deal you are getting into. They also need to find out if the property is in good condition and has no major defects or problems. The next step is finding out how much money they can make from the sale of the property after all expenses are taken care of.
7. Location and Neighborhood
Keep in mind, that your home does not exist in a bubble. It’s part of a larger neighborhood that you will live in on a daily basis. Having said that, it’s important that you find an area that suits your necessities before buying. Is the great escape one that gets you all the peace of a secret forest or tons of energy from an active city center?
Do you want to be able to go on foot to a coffee shop each morning or would you rather not have to deal with potentially loud neighbors? Whatever your heart wants, don’t think twice to do your research before starting your search. Take a drive and spend some time there, if required. Go out to eat at nearby restaurants and take a walk through a close-by park.
Once you find places that you like, let your real estate agent know. He or she will use this insight to focus on showing you will have you feel comfortable
At TBay Houses, we have mentioned agencies with excellent real estate experience. Utilizing their unmatched resources, they will craft a creative and winning strategy to help you buy/sell a house in Thunder Bay. Let us put our experience to work for you.
You might want to read this post if you are planning on saving for a house: How to save for a house in Canada