Buyers' F.A.Q.
Q: How do I choose a nice neighbourhood for my family?
- Environment
- A polluted area is harmful to your and your family's health and the local property value.
- Appearance
- A neighbour with littering, run-down properties, junked cars or appliances and massy lawns are signs of neglect. This type of neighbourhood tends to have lower property value as well.
- Crime rate
- Choosing a safe neighbourhood for your family is a must. You might be able to obtain some statistical reports regarding break-ins and other types of crimes.
- Schools
- A good indicator of a school's performance can be told by its average score compared to others. Also, a property nearby a school tends to have higher property value.
- Transportation
- Easy access to local transportation system can have both positive and negative impacts on your property. It could provide convenience and crime rate at the same time.
- Amenities
- Parks, post offices, clinics, supermarkets, restaurants provide convenience to your lifestyle. They might also increase the value of your property.
Q: Should I get my home inspected before purchasing?
It is highly recommended to have the house inspected before handing over your down payment. For a few hundred dollars, you will get a thorough report on the condition of your future home through a qualified inspector. Any latent defects will be revealed and reported to you before you make your final decision. Some fixes could cost you a fortune if home inspection report is disregarded.
Q: Why should I get my mortgage approval first?
Getting your mortgage approval helps you understand your financial capacity. You may also know how much you have to pay a month on your house. Also, you may have a clearer picture of much expense you have left from mortgage payment. You do not want your new house become your burden in the future. A pre-approval also shows your determination on your offer and place you in a stronger negotiation position.
Q: When would be the best time to purchase a house?
There is no right or wrong answer to this question. My suggestion is that whenever you are able to afford one, then go ahead and purchase it. Learning from the historical trend, it is very clear that land will always appreciate because land cannot be reproduced. Another good reason to purchase a house instead of renting is that it provides financial security. Rent is not an investment, thus you will not enjoy the value of appreciation. A house not only provides you physical protection but also financial security.
Q: How much can I afford to spend on a house?
As a rule of thumb, 1/3 or less of your monthly salary on your mortgage payment would be considered buying an affordable house. Remember, other than the mortgage payment, you also have other expenses, such as, insurance and hydro payments, to take care of. As of now, the amortization period has been extended to 40 years which means your monthly mortgage will be less of a burden to you. However, the draw back on the longer amortization period is that you have to pay more interest than you would have with shorter amortization period.
Q: Who gets the furnishings when a house is sold?
It depends on the type of furnishings. Any fixtures or personal property that is permanently attached to a property such as built-in furnishings usually stay with the property unless specified otherwise in the sales contract. Anything that is not permanently attached is negotiable. Example of such items would include appliances such as washers, dryers, refrigerators, etc.
*Please note that the comments contained on this page are for information purposes only and do not constitute legal advice.