10 Rules for First-Time Home Buyers
Buying your first home is packed with many different emotions, from
bieng excited to nervous, happy then anxious and then back to
excitement. To help ease your mind and emotions follow these top 10 tips
for first-time buyers.
1. Buy smart the first time
You can take advantage of whatever kind of market your buying into by carefully choosing your point of entry. It may mean waiting until prices drop in the winter or holding on a little longer until the right property comes along at the right price.
2. Tap your network
Ask your family, friends and co-workers for advice, and referrals to agents, lawyers and other professionals. Knowledge is power and the more you know, the easier the process becomes.
3. Prepare!
You will most likely be making your most important financial decisions of your life very quickly, in a matter of days, hours or minutes. Work out ahead of time exactly what you need, any extras you would like and what you can afford.
4. Have your deposit ready
You will need to put your deposit down when you find the home you want, usually within 24 hours. If you don't have it as a promise from mom or dad or in a bond fund, then you will need it in a cash account that is easily accessible.
5. Tally all the cost
It is more than just the mortgage that you will have to consider, taxes, utilities and insurance all have to be taken into consideration. Factor in spending 1% each year for maintenance and repairs.
6. Leave money for reno's
Set aside money or have a plan for saving money for the things you want to do to the place. The average length of time Canadians own a home is 3 years, don't spend most of it living in someone else's place.
7. Look over the fence
Neighbors have a big impact on your property's value.
8. Take advantage of tax breaks
In 2009, the Federal government introduced a first-time home buyers tax credit that lets you save $750.00 on your income tax. There is a Home Buyers Plan which allows you to 'borrow' money for a down payment from your RRSP tax-free. Explore all of your options to make the most of those first-time buyer savings.
9. Keep your emotions in check
Once you've made your purchase buyers remorse is a common psychological state. As long as you don't get too carried away, it's all in your head and once you move in any misgivings should dissipate.
10. Relax!
Relax and enjoy your new home and remember your home will likely never cost you more than it does the month you move in.
*NOT INTENDED TO SOLICIT BUYERS OR SELLERS CURRENTLY UNDER CONTRACT*
1. Buy smart the first time
You can take advantage of whatever kind of market your buying into by carefully choosing your point of entry. It may mean waiting until prices drop in the winter or holding on a little longer until the right property comes along at the right price.
2. Tap your network
Ask your family, friends and co-workers for advice, and referrals to agents, lawyers and other professionals. Knowledge is power and the more you know, the easier the process becomes.
3. Prepare!
You will most likely be making your most important financial decisions of your life very quickly, in a matter of days, hours or minutes. Work out ahead of time exactly what you need, any extras you would like and what you can afford.
4. Have your deposit ready
You will need to put your deposit down when you find the home you want, usually within 24 hours. If you don't have it as a promise from mom or dad or in a bond fund, then you will need it in a cash account that is easily accessible.
5. Tally all the cost
It is more than just the mortgage that you will have to consider, taxes, utilities and insurance all have to be taken into consideration. Factor in spending 1% each year for maintenance and repairs.
6. Leave money for reno's
Set aside money or have a plan for saving money for the things you want to do to the place. The average length of time Canadians own a home is 3 years, don't spend most of it living in someone else's place.
7. Look over the fence
Neighbors have a big impact on your property's value.
8. Take advantage of tax breaks
In 2009, the Federal government introduced a first-time home buyers tax credit that lets you save $750.00 on your income tax. There is a Home Buyers Plan which allows you to 'borrow' money for a down payment from your RRSP tax-free. Explore all of your options to make the most of those first-time buyer savings.
9. Keep your emotions in check
Once you've made your purchase buyers remorse is a common psychological state. As long as you don't get too carried away, it's all in your head and once you move in any misgivings should dissipate.
10. Relax!
Relax and enjoy your new home and remember your home will likely never cost you more than it does the month you move in.
*NOT INTENDED TO SOLICIT BUYERS OR SELLERS CURRENTLY UNDER CONTRACT*
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