8 Things You Must Know When Buying a Home
Winnipeg's Real Estate Market is a hot one, and has been so for the past few years. And whether you’re on the lookout for your first home or you want to buy real estate as an investment option, there are a few ground rules that you must obey if you don’t want to end up being on the losing side of the transaction. While some of them are obvious, there are others that are not so, and this is why people end up with mortgages that are too expensive and/or homes that are completely unsuitable for them. So before you buy a home, here are eight things you should consider:
- Don’t buy the biggest or most expensive house in the neighbourhood, or buy a home and renovate it to become the best looking and most expensive piece of property in the area. If you do, you’re going to have trouble maintaining and/or selling it if the need arises.
- Beware of white elephants like swimming pools, entertainment rooms and wet bars – they may seem like status symbols and conversation pieces, but remember that they will demand a huge chunk of your time and money towards maintenance and upkeep.
- Don’t waste too much time looking for a house that’s perfect in every way; you’re never going to find one that meets all your conditions. So make a checklist of all that you would like in a home, and weigh the strength of each option against the costs of obtaining it before you decide to keep it on the list or take it off.
- Understand all the terms and conditions of your mortgage before you sign on the dotted line – know how much you need to pay back every month and be aware of fluctuating interest rates if you haven’t locked them in.
- Don’t assume you can complete the deal without the help of a seasoned agent; yes, there are a few people who get lucky enough to find homes that they like and are able to complete the buying process smoothly without an agent, but if you’re a newcomer to the real estate field, it’s best you hire the services of a trusted agent.
- If you’re buying a condo, know that it is different from buying an individual home and that it has its own pros and cons.
- Although it is not an absolute necessity, it is advisable to put down at least 20 percent of the home’s value as down payment. This ensures that you reduce your liability and keep your loan down to a manageable amount.
- And last, but most important of all, don’t spend time, money and effort in buying a home if you’re not sure how long you’re going to live in it. If your job requires you to move often or if your future is not secure, rent instead of buying a home and avoid the hassles involved in buying a home and then having to sell it immediately.