Financial May 10, 2019

Costs and Value Benefits of Owning a Home

Buying a home is typically a very exciting time for most people, whether you’re a first time homebuyer or this is the fourteenth time.

Many people think of the basic costs like legal fees, GST (in some cases), property tax adjustments, the cost of movers, set-up fees for utilities, new window coverings, etc.  If you’re a first-time homeowner you should also consider home maintenance costs like purchasing tools, a lawnmower, etc. You may also have to consider some major costs like replacing flooring, windows, or roofs.

On the opposite side, some buyers may gain a cost-benefit from purchasing a new home.  You could purchase in a development that has a fitness center or swimming pool – so no more gym membership or transportation fees.

Next, you’ll want to consider the location.  Look at the location from many viewpoints by asking yourself “Where am I going to live relative to…?”  That relative to should include work (yours and your spouses), leisure activities (children’s classes, golf memberships, night school etc.), children’s school or daycare, proximity to family, best friends or the old neighbourhood.

Life rarely goes according to schedule, so try to determine the likely disruptions to a perfect schedule:

  • How often do you or your spouse have to work late or unusual hours?

  • Is your commute very efficient?

  • Does this mean your children may have to miss soccer practice or other activities they enjoy?

  • Is the commute likely to leave you too tired by the time you get home?

It can sometimes be overlooked, but consider the value of your purchase in relation to the emotional costs associated with the purchase.  When you buy a home you want to be satisfied on all counts.