3 Questions to Ask Before You Buy Your First Home
At some point everyone asks themselves if they’re ready to buy their first home. And while the answer is different for everyone, there are some questions that can help you find the right answer for you.
What are your reasons for wanting to buy your first home? Home ownership can be a good investment towards your future. If you are reasonably established in a career and with steady income, buying a home may make good financial sense. Your monthly housing payment could be building up your own equity for the future rather than your landlord’s. And if the property you buy happens to appreciate while you own it, you will grow equity even faster.
If you remain unsure about your future or uncommitted to a job or city, the flexibility of renting may make the most sense for you.
What is the right home to buy? Before buying your first home, make sure you anticipate your housing needs. On average Canadians buy and sell every five years so think in terms of a five year timeframe. Many young singles and couples prefer to be where the action is, meaning downtown in a highrise condo or loft. But if having children is in your near term plans, this might not be the most prudent purchase.
Should I become a landlord? Many first time home buyers consider renting out part of their properties in order to afford a larger payment. Consider yourself carefully before you do this. Are you prepared to put up with the inconvenience of sharing your home? Are you prepared to be “on call” whenever the tenant has a problem that needs to be fixed. What if the space goes unrented for a period of months? Can you afford to carry the mortgage yourself?
Even if the answer to all of these questions is “yes”, consider the future before you buy your first home. Many of the “landlords” I know were fine juggling the demands until they started their own family. Once babies came into the picture, their free time was so diminished that being an effective landlord became next to impossible.
If still in doubt, a realtor can help by showing you your options. Feel free to call me at 905-822-6900.
What are your reasons for wanting to buy your first home? Home ownership can be a good investment towards your future. If you are reasonably established in a career and with steady income, buying a home may make good financial sense. Your monthly housing payment could be building up your own equity for the future rather than your landlord’s. And if the property you buy happens to appreciate while you own it, you will grow equity even faster.
If you remain unsure about your future or uncommitted to a job or city, the flexibility of renting may make the most sense for you.
What is the right home to buy? Before buying your first home, make sure you anticipate your housing needs. On average Canadians buy and sell every five years so think in terms of a five year timeframe. Many young singles and couples prefer to be where the action is, meaning downtown in a highrise condo or loft. But if having children is in your near term plans, this might not be the most prudent purchase.
Should I become a landlord? Many first time home buyers consider renting out part of their properties in order to afford a larger payment. Consider yourself carefully before you do this. Are you prepared to put up with the inconvenience of sharing your home? Are you prepared to be “on call” whenever the tenant has a problem that needs to be fixed. What if the space goes unrented for a period of months? Can you afford to carry the mortgage yourself?
Even if the answer to all of these questions is “yes”, consider the future before you buy your first home. Many of the “landlords” I know were fine juggling the demands until they started their own family. Once babies came into the picture, their free time was so diminished that being an effective landlord became next to impossible.
If still in doubt, a realtor can help by showing you your options. Feel free to call me at 905-822-6900.
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