You just went over your expenses for the past year and realized that you paid over $24 000.00 in rent to your landlord, who in turn used your money to pay off his condo. Awesome. Frustrating much?
Although there are LOTS of reasons to buy a home that’s got to be one of the biggest drives for most young professionals. The thought of paying off someone else’s debt when you could likely start making your money work for YOU.
While renting is a good option for many reasons (blog post to come), if you are in the position to purchase a condo or house, I can assure you it will feel much better putting $24 000.00 into your own investment rather than someone else’s
So now what? Here are a few things that should be considered before you move forward with your house hunt and most likely one of the biggest financial investments you will ever make (no stress).
Chances are that in order to purchase a home you will need to secure a mortgage and make at least a 5% down payment on the purchase price of your home. Try to meet a with a mortgage broker, or your banking professional in advance of starting your house hunt so you can get pre-approved, and ensure you know what you can really afford. When working on a budget for your new home, don’t forget about closing costs, unexpected costs, and maintenance costs up front.
Real Estate Professional
Can you buy a house without having an agent? Sure you can. Is it a good idea? No. Truth is, purchasing a home can sometimes be very complex, and it’s worth having a real estate professional on your side to ensure that things work out in your favour and that you get what you want. Typically, the seller pays the commission fees of both the buyer and seller agents so you’ve really got nothing to lose.
What do you really want?
Condo, house, townhome? All come with their pros and cons. Are you willing to do the maintenance a detached home requires, or would you prefer to pull into your condo underground parking garage during a winter storm? On the flip side, if you see yourself lounging in your backyard while your BBQ heats up in preparation for a backyard shin dig, then a house might be for you. The point is, you have options and it’s important to know what you want, and what you don’t want. This isn’t always easy however having a few ideas of your musts, and must not’s certainly helps when decisions need to be made.
All in all, the decision to buy a home is a big one, but it’s also a very exciting step. As long as you do your homework and make educated decisions, it can be a very fun and rewarding experience!
If you’re looking for more information on buying a house please contact me at [email protected] and I would be happy to help out.