Facebook
X
Pinterest
Copy Link
Why it pays to think like an investor when buying your first home
When buying your first home, you’re taking your first step on the property ladder, which can set up your wealth for life. Therefore, it makes sense to think strategically to maximize the value of your investment.
As a first-time home buyer, you should begin with the end in mind—that is, consider your financial goals and how owning property will contribute to your wealth.
Your first property purchase will have far greater significance than simply allowing you to escape the rental race or finally stop living with your parents.
But don’t buy on emotion. Instead, create and apply your financial plan to your first property investment. A successful first purchase can substantially add to your lifetime’s wealth.
Research and advice are essential in making the right decision. As your real estate agent, I’d be happy to provide you with insights into high-growth local neighbourhoods.
Independent data sources can also help you understand where to invest and the type of property in demand, such as a condominium or house. Investigate the local market to see what’s hot on the rental market, which can often provide a clue.
Remember, if you view your decision as an investor, you don’t have to be entirely in love with this first property. It won’t be your forever home – it’s your first step on the property ladder.
Another important factor for first-time home buyers is maximizing the available financial instruments, such as government grants or schemes that encourage people into the housing market. It’s always a good idea to seek professional financial advice and help from a mortgage broker.
Here are the critical considerations for a first-time buyer:
- Think strategically – how will this purchase help you meet your longer-term financial goals?
- Seek out high-growth areas – these will provide the best financial results for you.
- Research the style of property in the highest demand in your chosen neighbourhoods.
- Leverage all financial instruments to accelerate your entry into the market.
- Ensure you stay within your budget and
- Remember, let your head – not your heart – make the decisions.
How to Choose the Right Neighbourhood for Your Family
Choosing the right neighbourhood is one of the most important decisions you’ll make when buying a home. Your neighbourhood will impact your family’s lifestyle, sense of community, and even the long-term value of your investment. As a trusted real estate agent, I’m here to guide you through the process of finding the perfect neighbourhood that meets your family’s needs and preferences. Here’s how to make an informed choice.
1. Prioritize Your Family’s Needs and Preferences
Start by making a list of what’s important to your family. Consider factors such as:
- Safety: Look for neighbourhoods with low crime rates. The Saskatoon police department website can provide crime statistics.
- Schools: If you have children or plan to in the future, research the quality of local schools.
- Commute: Consider the distance to work and the ease of access to public transportation. A shorter commute can improve your quality of life and save money on transportation costs.
- Amenities: Think about the amenities that are important to your family, such as parks, playgrounds, grocery stores, restaurants, and healthcare facilities.
- Community: Consider the community vibe. Do you prefer a quiet, suburban area or a lively, urban neighbourhood? Attend local events or visit community centers to get a feel for the neighbourhood.
2. Research Property Values and Market Trends
Understanding the real estate market in a potential neighbourhood can help you make a sound investment. Look for:
- Property Values: Investigate the current property values and how they’ve changed over the past few years. This can indicate the stability and growth potential of the area.
- Market Trends: Pay attention to market trends. Are homes selling quickly or staying on the market for a long time? Are prices rising or falling? This information can give you insights into the future value of your investment.
3. Visit the Neighbourhood at Different Times
A neighbourhood can have a different feel at various times of the day and week. Visit during the morning, afternoon, and evening to get a comprehensive understanding of the area’s dynamics. Pay attention to:
- Traffic Patterns: Is there heavy traffic during rush hours? Are there any noise issues from nearby highways or businesses?
- Activity Levels: Are there people out and about? Do you see children playing and neighbours interacting?
- Safety: Observe the neighbourhood’s safety at night. Are the streets well-lit? Do you feel comfortable walking around?
4. Talk to Residents and Local Businesses
Engaging with current residents and local business owners can provide valuable insights into the neighbourhood. Ask them about:
- Quality of Life: What do they like and dislike about living in the area? How is the sense of community?
- Local Issues: Are there any ongoing issues or concerns, such as planned construction projects, noise, or safety concerns?
- Recommendations: What amenities and services do they recommend? Are there any hidden gems, like parks or cafes, that you might not find on a map?
5. Consider Future Development Plans
Future development can significantly impact a neighbourhood’s desirability and property values. Check with the local planning department for information on:
- Upcoming Projects: Are there any planned developments, such as new schools, shopping centers, or public transportation projects?
- Zoning Changes: Are there any proposed zoning changes that could affect the neighbourhood’s character or property values?
Choosing the right neighbourhood for your family is a crucial step in finding your dream home. By prioritizing your family’s needs, researching property values, visiting the area at different times, talking to residents, and considering future developments, you can make an informed decision that will benefit your family for years to come.
As your dedicated real estate agent, I’m here to assist you every step of the way. Contact me today to start your journey towards finding the perfect neighbourhood for your family.
Smart Financial Planning: Essential Tips for Millennial Homebuyers
Welcome to our blog! As a Saskatchewan-based real estate agency, we understand that buying a home is one of the most significant financial decisions you’ll make. If you’re a millennial looking to step into the property market, it’s crucial to have your personal finances in order. Here are some essential tips to help you navigate this exciting journey.
1. Understand Your Financial Health
Before diving into the real estate market, take a good look at your financial situation. Calculate your net worth by subtracting your liabilities (debts, loans, etc.) from your assets (savings, investments, property). This will give you a clear picture of your financial health and help you set realistic home-buying goals.
2. Create a Budget and Stick to It
Budgeting is the cornerstone of financial stability. Track your income and expenses to see where your money is going. Categorize your spending into essentials (rent, groceries, utilities) and non-essentials (entertainment, dining out). This will help you identify areas where you can cut back and save more for your down payment.
3. Save for a Down Payment
In Saskatchewan, a typical down payment ranges from 5% to 20% of the home’s purchase price. Start saving early by setting aside a fixed portion of your income each month. Consider opening a high-interest savings account to maximize your savings. Remember, the larger your down payment, the lower your monthly mortgage payments will be.
4. Pay Down Debt
High-interest debts, like credit card balances, can eat into your savings and affect your ability to secure a mortgage. Prioritize paying down these debts to improve your credit score and increase your borrowing power. Consider using the snowball or avalanche method to tackle your debts effectively.
5. Build an Emergency Fund
Life is unpredictable, and unexpected expenses can arise at any time. Aim to save at least three to six months’ worth of living expenses in an easily accessible emergency fund. This will provide a financial cushion and prevent you from dipping into your home savings in case of emergencies.
6. Understand Mortgage Options
There are various mortgage options available, each with its pros and cons. Fixed-rate mortgages offer stability with consistent monthly payments, while variable-rate mortgages can be lower but fluctuate with market rates. Research and compare different mortgage products to find the one that best fits your financial situation and long-term goals.
7. Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage gives you a clear understanding of how much you can borrow and shows sellers that you’re a serious buyer. It also helps streamline the home-buying process and can give you a competitive edge in a hot market. Gather all necessary documents, such as proof of income, tax returns, and bank statements, before meeting with a lender.
8. Consider Additional Costs
When budgeting for a home, don’t forget to factor in additional costs beyond the purchase price. These can include property taxes, home insurance, maintenance and repairs, utilities, and closing costs. Having a comprehensive understanding of these expenses will help you avoid any financial surprises down the road.
9. Seek Professional Advice
Navigating the real estate market can be complex. Don’t hesitate to seek advice from financial advisors, real estate agents, and mortgage brokers. They can provide valuable insights and help you make informed decisions throughout the home-buying process.
10. Stay Informed and Flexible
The real estate market is dynamic, and conditions can change rapidly. Stay informed about market trends and be flexible with your home-buying strategy. Whether it’s adjusting your budget or exploring different neighborhoods, being adaptable can help you find the perfect home within your financial means.
Buying a home is a significant milestone, and being financially prepared is key to making this dream a reality. With a little work and patience you can build a strong financial foundation and confidently navigate the Saskatchewan real estate market. Remember, I’m here to help you every step of the way. Happy home hunting!
Top 5 Benefits of Owning a Home
I’m not going to beat around the bush; a house is a big purchase and a huge life milestone. You want to make sure you are making the right choice. Have you been wondering if it is worth it to take the leap? Are you overwhelmed by all the information out there? While there are many benefits of owning a home versus renting one, here are some of the top ones you’ll want to consider!
#1 – It’s a Great Way to Build Equity
First off, what does equity mean? Equity refers to the probable market value of your property against any liens (such as a mortgage). The longer you own a home and pay towards the balance of any liens, the liens will gradually decrease as the property value and your equity in the home increase. The larger the home equity you have, the more borrowing and purchasing power you earn towards loans for home improvements, funding your children’s education, or other consumer goods such as a car.
While you build your equity as a homeowner with regular payments, your credit score will also receive a nice boost!
#2 – Your Investment Gets Better With Time
Investing in buying a house provides a better return than most other investments, such as a car. Depreciation begins as soon as you drive the car off the lot, where owning a home behaves in the opposite, appreciating in value over time (depending on market conditions).
Though even an experienced local REALTOR® cannot predict precisely what will happen with your home value in the coming years, they can provide past values for the neighbourhood. Looking towards the trends on values on homes in the area will help gain some understanding of what you can expect.
#3 – Less Expensive Than Renting in the Long Run
Yes, really! When buying a home, there are, of course, many upfront costs—down payment, appraisal fees, homeowner insurance, etc. And, similarly, you are paying a certain amount per month. However, as stated in the first point, you are paying to own the home, and your personal net worth increases. Whereas, with rental properties, you are paying to use the landlord’s property to live.
Check out Renting vs. Buying: Which is Better For You for a more in-depth comparison!
#4 – Plant Your Roots
Options for rental properties are often limited in terms of location. Buying and owning your home means you get to CHOOSE where you want to live; the neighborhood and proximity to schools, parks, your employer, and other amenities. By this choice, you can be sure you will have pride in ownership, not only in your property but your community, by forming relationships with fellow neighbors, local services & politicians and taking part in community events.
#5 – Freedom to Customize Your Space
This might be the last on the list, but it is certainly not the least. Actually, this might be the best reason of them all! While renting, you are at the mercy of your landlord in terms of colour and style choices made and cannot alter them. Ownership offers you the freedom to make changes. Paint the walls, rip up that carpet, install a secret door—the choice is yours! To make the deal even sweeter, not only will these changes make the house feel more like home, but they can elevate your property’s value as well.
Of course, there are countless other benefits and considerations for purchasing a house. However, the best way to ensure you are finding the perfect home for you and your family is to work with your very own REALTOR®.
Don’t have one? I’d be happy to help—contact me today!
Renting vs Buying: Which is Better for You?
From the day that you move out of your family house, you dream of the day when you finally stop paying rent and buy your first home. But, as you may have discovered, buying a home is not quite as simple as it seems! There is a lot to consider when deciding whether or not to make the move into homeownership.
By buying a house, you’ll be taking on all the pros of being a homeowner versus a renter. But you’ll also be taking on quite a bit of responsibility and giving up on some of the advantages that come with being a tenant. That’s why, before you start your home search, it’s important to weigh the pros and cons of both renting and buying to decide whether or not you’re ready to become a first time homeowner.
Should You Buy or Rent: The Pros & Cons of Each
Repairs & Maintenance
First up in our comparison is every adult’s favourite topic of discussion about the home—repairs. As a tenant, the only thing you have to do when it comes to ongoing repairs and maintenance around the home and yard is call the landlord. They are typically responsible for taking care of any work that needs to be done—unless you’ve discussed an alternate arrangement—so you can just sit back and relax.
As a homeowner, though, repairs and ongoing maintenance are entirely your own responsibility. You’ll need to not only figure out what is wrong all on your own, but you’ll also be in charge of either fixing it yourself or calling in a professional to do it for you, costing you both time and money.
Decorating & Design
If you’ve ever wanted to switch up the light fixtures or even just paint a wall as a tenant, chances are you’ve experienced the headache of getting anything approved with your landlord. Since you don’t own the home as a renter, you need to ask permission from the owner before making any lasting changes. Otherwise, you could end up with a missing damage deposit when it comes time to move out.
If you own your home, though, any decor or design changes you wish to make, you can simply do! That picture-perfect bathroom accent wall you saw on Pinterest? Throw on some coveralls and get to work! The three-tiered deck you’ve been dreaming of? Stop by the hardware store and start building! The sky is your limit in your own house (well…the sky and your budget, of course!).
Flexibility
Decided you don’t like the neighbours and want to make a move? As a rental property tenant, just give your landlord the appropriate notice that you’ll be moving out and leave it all behind! As a homeowner, though, you’ll either need to sell the house to turn it into a rental property of your own to make a change.
Paying Rent vs Paying a Mortgage
While both renting and owning require you to make a monthly payment, they aren’t quite the same. Rent is similar to paying for a hotel room—it is an agreement between you and the property owner that you will financially compensate them for allowing you to stay in their space. A mortgage is more like making payments on your car—the more payments you make, the more of the home you own. This is called equity.
Another difference between the two payments is the amount being paid. Depending on the rental agreement between you and your landlord, your rent could be subject to change at your landlord’s discretion. This could leave you with a rent you can suddenly no longer afford, should an increase happen at the time of renewal. With a fixed-rate mortgage, though, you are guaranteed the same payments for the entire length of your term!
Pet-Friendliness
If you have a furry friend like me, you are no stranger to the struggle of finding a pet-friendly rental property. Most rentals don’t even allow for pets and those that do, often require an additional deposit on top of your down payment. But if you own your home, you can have as many pets as you want, no deposits or approvals required!
Insurance
Every landlord is required to purchase insurance for their rental properties that can cover the home in a variety of ways. This doesn’t, however, include any of your possessions as the renter. If you are renting a property, you have the option of purchasing your own tenant’s insurance to cover your belongings in the home, but it isn’t required! On the other hand, as a homeowner, you are required to purchase home insurance to protect your property.
Other Differences Between Renting & Buying
Tax Benefits – Every interest payment a homeowner makes on their mortgage is a tax deduction later!
Security – Owning a home, the only ones who have a key to your property are those you’ve given them to. As a renter, though, your landlord also has access at any time, along with anyone they’ve given a key to.
Appliances – As a renter, you are subject to whatever appliances are in the home, which may not be quite what you want. As a homeowner, you can choose whatever appliances fit your preferences and budget!
As a renter, you’ll never have the pride and autonomy that comes with home ownership, but there are quite a few advantages to renting that may be better suited for your lifestyle right now. So before making the switch, take some time to seriously consider the benefits and disadvantages of each to decide which is right for you.
And if buying a home is where your heart is at, though, I’m happy to help! Contact me and let’s get started on finding you your dream home today!
