Buy or Sell First: One Home, One House, Two Mortgages And A Pool

THE BIGGEST DECISIONS OF YOUR LIFE COULD TURN INTO A BIG DISASTER IF YOU AREN’T PREPARED   Deciding whether to buy or sell first can be a difficult decision that face home owners. It is a decision that if not executed properly could leave a homeowner with 2 mortgages and lots of stress. Owning two houses sounds like a great real estate investment but not when one is a home and another is a house you are trying to sell. This is the case with a neighbour of ours who is living the stress yet fails to see the problem, is the price of the house. Typically in the UK we would sell our home first with a reasonable closing date and then look for a new home to purchase.   Research Before You Buy   What to do when buying your first home? That’s easy, research! Talk to professionals and get tips and advice so you aren’t heading down a path where you want to tear your hair out. The same goes when you’re looking for things to do when selling your home, research. When I sold my home I did my research first, granted I wasn’t buying a second […]

Should I Rent Or Buy? The Million Dollar Question

DO YOUR RESEARCH BEFORE DECIDING TO RENT OR BUY YOUR NEXT HOME   Never have so many Canadians today faced such a tough question in “Should I Rent or Buy?” It’s the million dollar question but I’m not going to make it any easier on you because the answer to the question really is – it depends. There are a number of questions we can ask ourselves to determine and narrow down the grey areas here and provide you some clarity for your own situation.   Should I buy a property?   The fact of the matter is that we are just coming off of the greatest housing boom in the history of the world. This is no small statement. Many fortunes have been made over the last decade in the western world by buying property. But what now? First let’s look at the three reasons why you would buy a property: To use as a primary residence – this is the main reason to purchase property for the majority of Canadians. We occupy the home for our own use and derive value from using it as our family’s shelter. To gain capital growth – the last 10 years have […]

Open Houses and Nosey Neighbours, Are They Worth It?

We admit we are nosey neighbours when it comes to some open houses in our neighbourhood but for good reason. Yes, we have the “stop the car” moments when the “for sale” sign just happens to show up and we just have to go inside. It’s not often homes in our area go up for sale as we live in an area where people don’t tend to leave. Most of the homes were built about 15-20 years ago and the area is becoming quite diverse in demographics since we moved in. Back a few years ago most, OK almost all of our neighbours were either a bit older than us or retired seniors. We bought our house from a senior couple who were downsizing their home  and moving into a rented condo. Funny how some people go from owning a home to renting a home later in life. Needless to say, everybody knows everyone in our small neighbourhood which can be a good thing or a one of those situations where you want to go bury your head in the sand. Over the last year or so as the silent and baby boomer generation start to move out we are seeing younger families move […]

Becoming A Single Homeowner – Part 3 “Mortgage Options”

In our previous post Part 2 of this 3 part series- our potential Single Homeowner had their budget, credit, downpayment, and type of property all mapped out. But what about the mortgage itself? Understanding your mortgage options is the final and a critical step in order to increase your shot at owning your own home and not one to consider lightly. Related: Becoming A Single Homeowner – Part 1 “The Plan” Mortgage Options  With over 400 different mortgage products available to the Canadian consumer – it can be overwhelming to navigate this marketplace. I will cover off some of the major differences in the mortgage products here. Fixed vs. variable rate mortgage – when considering the potential savings of a variable rate mortgage we need to consider that this is tied to the Bank of Canada’s prime rate and the fact that this can change from time to time. Outside of this – on both fixed and variable rate mortgages – it is very important to ensure that we get the deepest discount to the interest rates available for the mortgage term on closing. One way to accomplish this is to wait until 30 days before the closing date of […]

Becoming a Single Homeowner – Part 2 “Property/Down Payment”

In the last post, part 1 Becoming a Single Homeowner-The Plan I talked about how Single people are looking to become homeowners and the preliminary step in making a plan and the aspects to consider with your credit. Once these are in place – it is time to look at how to come up with your down payment and the type of property you are eligible to purchase. Down Payment Considerations This is an area where my Single clients are usually deficient. The demands of a Single person’s budget can be unrelenting and there are always important areas that your dollars are required. This is another reason why planning and budgeting are going to be the cornerstone of your Home Purchase plan. There are essentially four ways to achieve the down payment and they are to get it gifted, save it, borrow it, or qualify for a forgiveable loan. Get a gift – well we would all like to have a well endowed benefactor in our corner however the reality is that unless our parents or grandparents are looking to help us make the jump to becoming Homeowners – this one is a pipe dream. Save it – the minimum down payment […]

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