Buying a Home Without Ending Up House Poor
Most first-time buyers will tell you that finally closing a deal and getting the keys to a brand-new home feels pretty amazing. It’s afterwards, however, that things can take some getting used to. Between newly established mortgage payments and closing costs (not to mention the normal repair costs that sometimes come with owning your own home), many first-time buyers find themselves feeling “house poor,” with minimal disposable income to put toward retirement, vacations or small luxuries they may have taken for granted in the past. Here’s how to snag that home and avoid feeling like the trade off is a permanent state of being cash-strapped. Buy the home you need now. Some people think that buying a bigger house will mean more value down the road, or at least makes more sense if you plan to expand your family. But paying a mortgage on a second bedroom you don’t even use might mean heftier monthly payments. Keep within your budget and buy what makes sense for your needs. Don’t spend all of what the bank is willing to lend you. Canada has a mortgage stress test for a reason. If home interest rates rise, so will your monthly payments. Taking on a smaller mortgage goes a long way toward leaving you with some contingency funds, which is especially crucial if interest rates rise. Know what’s worth spending money on. When you feel house poor, it can be tempting to skimp on certain upkeep tasks. However, neglecting these tasks can cost more money over time, or result in you having to pay an unexpected lump sum (to replace a roof, for example). Make sure you understand the necessities of homeownership, as well as the “nice to do” improvements. Evaluate your life. If you feel like homeownership is causing you to give up things that make your life truly enjoyable—or causing you to lose out on crucial necessities (like medication)—it might be time to re-evaluate things. Maybe it’s time to downsize or look at moving into a more affordable part of the city. Maybe you can make some extra income by renting out a room or picking up a part-time job. Buying a house should never mean sacrificing an enjoyable life. With some careful planning and a full understanding of what homeownership really costs, you can have your own space and live a full life.
Buy a Luxury Home Sight Unseen
For the same reasons that people are sometimes wary about buying things online (it’s hard to assess the quality and details, it might be the wrong fit, etc.), most homebuyers would be hesitant to buy a home sight unseen too. In fact, buying a home sight unseen has one downfall that even online shopping doesn’t: You can’t return a house after you’ve bought it! There are times, however, where buying sight unseen might just make sense. Here’s what you need to know: There are circumstances where it is actually logical. If you’re relocating from another region, you might not have the luxury of touring homes in person. And even if you do, in some hot markets, luxury homes sell within days of being listed, meaning you may not even have time to hop on a plane for a viewing. Likewise, if you’re interested in purchasing a luxury home pre-construction, there simply won’t be a way to view the home before buying… since it’s not even built yet! Rely on friends or your agent. After you’ve checked out a listing online, call in friends that may live nearby or are familiar with the neighbourhood. They might be able to view the home on your behalf, or at least give you a rundown of the area and offer some insight into what it would be like to live there. You can also ask your agent if they would tour the home for you, or, if it’s a sizable distance away, if they know someone who would. It’s a good idea to ask if they will do a video tour, so you can see the unit in real-time. Do some research on the developer. If you can’t be there to see the finishes and check the foundation yourself, find out who developed the property and see what their track record is. This is usually best practice when considering a pre-construction luxury home. Some provinces have databases where you can search developers and see how many complaints have been lodged against their developments. Make an offer—with contingencies. When buying a home sight unseen, it’s crucial to add some contingencies to your offer, since there are limitations with being so far away, even with people viewing the home on your behalf. A good option is to add a home inspection contingency, signifying that if any major problems are found, you have a way out.
These 5 Rooms Are Key to Family Buyers
Do you have a home for sale in a great family neighbourhood? With reputable schools, plenty of greenspace and friendly neighbours nearby, you might be tempted to market it to young or growing families. These five rooms, however, are what will really sway buyers with a babe (or two!). KitchenA kitchen that’s functional, durable and open-concept (so parents can keep an eye on the kids while they’re busy prepping dinner) is key. BathroomAnother room that gets a lot of use from families, your main bathroom should have up-to-date plumbing and be free of water damage. After all, it will have to endure a lot. If you’re thinking of renovating, keep in mind that a bath tub is essential for most families with small children, so think twice before swapping it out for a standalone shower. BasementAll kids need a place to blow off some steam, and in Canada, when it’s freezing outside, that usually ends up being the basement. A finished basement can go a long way to encouraging family buyers, even if it’s pretty basic. LaundryWith kids, the laundry can pile up. If you have the space, consider adding some elements that make the laundry room as welcoming as it is utilitarian. This could include front-loading machines with a butcher block across the top for folding space, lots of closed storage, even heated floors if you feel like splurging. MudroomAs any parent knows, getting kids ready in the morning can be a struggle at worst, or just a mess at best. Outfitting your mudroom with plenty of storage, durable flooring that’s easy to clean and maybe even a sink if you have room, can be a lifesaver for young families.
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