Buying Your First Home
Buying your first home for the first time is very exciting, whether it be an apartment, condo, townhouse, or house. It could come at wildly different stages for people. For some, they want to buy a house as their first major purchase, as early as possible. For some, they want to travel and live freely before starting the search of home ownership. For others, they want to take it in stages, first renting, then purchasing a car loan, then buying a puppy/kitty and then hearing up for the big purchase of a home.
Buying into the real estate market in theory sounds complicated. First off it is expensive and is not something you can just jump into without creating goals and having and financial means to fund your real estate. Two, all of the paperwork, legal fees, monthly mortgage payments, property tax, house maintenance labour and costs, and more miscellaneous items makes the venture into real estate seem taxing on the mind, body and well of course your wallet.
We want to break it down for you, so you understand exactly what it would look like entering into real estate for the first time and costs that you will want to know exist. Do not think of entering real estate as a pain. Yes, it requires work, but so does many amazing things in life.
There is a lot to consider when looking at entering the real estate market and buying your first home. For this reason, we are going to break this blog into two parts, with part 1 about tips about entering the real estate market, and part 2 being about the different costs and what they are/mean.
So What Should You Know First when Buying Your First Home?
Before we jump into costs to expect in the next blog, it’s first important to know what you are looking for first. Do you want a condo, or a townhouse or a home?
It is also best to start out with what you can afford first and work on paying that off before building up till your next level. We understand, if you have kids, you don’t just have the options of doing the safe approach, but you must consider the needs of your kids and the extra things you will need, likely pricing you into a higher ballpark then you would prefer.
Do not be discouraged by any route you take, but please do research on your local area to understand what the average prices are for different real estate models. It has often been said that the three most important rules in real estate are “location, location, location.” Living downtown can be expensive, so maybe looking at areas on the outskirts could be a good idea.
A place that is near a bus stop could save you money on transportation, allowing you to spend a bit more on a place to live. Also consider the quality of life and options available around your house, such as nearby grocery stores, gas stations, shopping centres, hiking trails, beaches, parks, or other important destinations that you need/want to be a part of your regular life.
What are some other tips when Buying Your First Home?
For some, they must live where they are currently and do not have much breathing room for movement. This is why lots of people love remote jobs, as they have the opportunity to work from a big city but live in a small community where real estate prices are significantly cheaper.
Now you might be wondering what the advantage is over buying a cheaper property, even if you could afford something more expensive.
Regardless of the price of the home, paying it off every month is going to help your credit and increase your equity in your home. If you can barely make ends meet for a particular mortgage, you may work more hours, burn out, have little to spend on other things and not put any extra money into your home each year. A cheaper options may allow you to have a better quality of life, while also paying off your home faster, paying less overall interest and then preparing yourself for a larger purchase down the road.
You may or may not feel ready to enter the real estate market, but either way, this blog reiterates how important it is to consider location and lifestyle into your decision. Obviously, your finances does the true talking, but there are places that you can live that can make it a win win for you, or turn into a struggling situation where you’re paying something too pricey, in a place you do not want to be.
Consider all of your options before buying your first home and discuss it with whomever you trust, and especially anyone you are buying with. We are available at anytime to discuss options with you and see where your first buy might be most convenient for you.
Your new life is around the corner, it’s meant to be exciting, which is why we want to make it easier for you, so that you can enjoy the entire process.