HELP BUYING A HOUSE

Avoid costly home buying ERRORS

 

1) Work with real estate professionals

You would hire a lawyer for your contracts, a financial advisor for your investments and interior designers for your home.  You could do it all yourself, but there is likely something you don't know, you don't know.  That can cost you thousands...
When you hire a Realtor, they are part lawyer, part financial advisor, part designer, part chauffer, part life coach and organizational maverick. 


2) Talk to your realtor agent sooner

Depending on your situation, professionals can help you plan to buy a house years in advance.  Lets assume your credit is bad.  That takes months to repair and sometimes years if your habits remain the same.  Securing a pre-approval early can lock in your interest rate and protect you from rate increases.  With that advice alone, I've saved you thousands in interest payments.  If your bringing money from overseas or wish to take advantage of the RRSP Home Buyers Plan, then you may need 90 days before you can use that money.  Down payments can take some time to accumulate and a good agent will show you how.
 

3) Waiting to save more money - Use CMHC

This one can be the costliest of all mistakes.  Assuming you're renting then you may waste $24,000 a year in rent + all the appreciation for the year you waited.  Example, if a Condo was $400,000 and it appreciated 10% in one year, then the same condo is $40K more in one year versus having purchased as soon as you could afford it.  The math is 24K rent + 40K appreciation = $64,000 cost of waiting.  Instead save 5% and use CMHC


4) Trying to save on your own

Similar to the above example.  Few people can hope to save at the same rate that houses / condos have been appreciating in Toronto. To save $40,000 net, you would need to make $50,000 or more before income taxes.  Therefore, trying to do it on your own will delay your purchase and you will fall behind while prices continue to climb.  Get help from family or move in with a friend to simply get in the market now and ride the wave of appreciation rather than being left behind.

There are a dozens of tips I could share, that would save you thousands.  I could write them here, but then I would be giving away my value.  As a client, I work to help you see the traps and avoid the obstacles that erode your wealth and delay your promised future.

Give me a call to get started...