The cost of buying a home varies, but it is important to know all the additional costs and fees involved.
Buying a home is expensive but there can be good financial reasons to do it. For example, a home is an asset that can grow in value over time, and the rent won't keep going up.
Some of the costs of buying a home are:
- Down payment - A portion of the price of the home (usually between 5% and 20%) that you must pay before you can apply to a bank, trust or credit union for a loan (mortgage).
- Mortgage - A loan that is usually repaid in monthly installments (usually over 5-35 years). You must repay both the amount you borrow (principal) plus the charge for borrowing the money (interest).
- Property taxes - Taxes you must pay to your municipal government that help finance local services such as police and fire protection, garbage and snow removal, road maintenance and public health.
- Condominium fees- Condominium owners usually pay a monthly fee for general building maintenance.
- Renovation - Structural repairs required, especially with older homes.
- Maintenance - A cost that varies depending on the style, size and age of your home. You may also have to pay for unexpected repairs and replacements.
First-time buyers are often surprised by the hidden costs of home ownership. These costs include:
- Property appraisal fees
- Home inspection fees
- Service charges for connecting utilities
- Moving expenses
- Property insurance
The Canada Mortgage and Housing Corporation (CMHC) has a helpful guide called, How much will it really cost?
You can contact Greg Hollander for more information about buying a home. To contact him, go to Greg Hollander.
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• 2 bath, 2 bdrm single story
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$2,200 CAD
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Wellington Village, Ottawa
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Have you ever wanted to live in the Urban Chic dream? Here is your opportunity. High up on the 7th floor of this beautifully designed 2 bdrm, 2 bth condo, you get an amazing view of both the Parkdale Market and the Gatineau Hills. With access to shopping, entertainment and incredible food, you can find yourself nicely nestled in between fashionable Wellington Village and Ottawa's Art Centre Hintonburg. Call now to book a viewing.
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Wellington Village, Ottawa
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Announcing a rent/lease reduction
on 701-320 Parkdale Av, a 2 bath, 2 bdrm single story. Now
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Monthly
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What a lot of home buyers learn after buying their home is that with a smaller amount of money upfront, they are able to purchase something that is far more valuable than their upfront amount could originally buy. This is called leveraging. And that is basically what a mortgage does for you. In simple terms, you use a down payment to allows you to borrow the remainder (which is called the principal). When you purchase a house you may put down $15,000 and then own a house that is worth $300,000. That $15,000 is 5% of the value of the house, which is the minimum allowed in Canada. Then the lender will lend you the remainder that is paid off over the term of the mortgage.
Now the bonus is if your house, over the first year of owning it, appreciates another 5% (then your house will be worth $315,000), that original $15,000 that you have put down is now worth an extra $15,000 bringing it to $30,000. Which is 100% return on your investment.
Now, you should always remember, with an investment there is always a risk. I gave an example of the house going up in value, which is called appreciate. But it can also go down in value, which is called depreciate. However, if you are planning on hanging on to the house for a while, that shouldn't make a difference, as the value isn't drawn from your bank. It is just something that is on a piece of paper. Over time the value should rise again and you will be back where you started or even better.
Sorry about my absence last week. I too need a holiday. But I am back and this week's reason for buying is the difference between renting and buying.
Many people complain about the fact, when it is time to pay rent, that their hard earned money is going into somebody else's pocket. The landlord's pocket. And as it turns out, often it is the same somebody who is supposed to fix that front step of the house you and your family are living in or replace their run-down washer that won't wash your clothes properly or won't answer the phone when you need them.
This doesn't have to be. For when it is your own home, that same hard earned money that used to go to rent, will now become part of your investment. And when you sit down with the bank to negotiate your mortgage, you have the opportunity to choose how you want to pay your mortgage. Unlike when you negotiate your rent. And sometimes it's not just the rent you have to pay....sometimes there is key money (although that is illegal).
And speaking of the bank; although some of it goes to the bank, another portion goes to your home and stays in your home. Actually you are building the equity in that home and you are increasing your value as an individual and your ability to borrow in the future.
Also an important fact to remember, is that as time goes on the portion that goes to the bank gets smaller as the principle portion of the mortgage gets smaller. Unlike your rent, which stays the same the whole time and in fact increases over every year.
Another important fact to remember is that the rent you are paying to your landlord is probably helping your landlord buy the home you are living in. Wouldn't you rather be paying for your own home?
This is yet another reason to Buy A Home.
Another important reason next week.
One great reason for Buying a Home is that everywhere you look you will see that rates are extremely low. It is true that they have risen recently, but compared to the seventies and the eighties, the rates are much, much lower. Always remember, the lower the rate, the more you can buy with your money. There are different types of mortgages that a Buyer can choose from and a mortgage professional can certainly best guide you through that process. But whatever type you choose, always remember the rates are extremely low right now.
You find yourself struggling with the idea of whether you should buy a home. You know from your experience renting there is a benefit to having someone else take care of the costs of owning a house. All you need to worry about is coming up with your rent each month...no surprises. But then you think about the incredible feeling you may have from owning your own home. The freedom of being in complete control of the choices you can make regarding the house. You can't put a price on that feeling.
So what other reasons are there for buying a home? I will give some of those reasons over the next couple of weeks. Stay tuned!!
You've just written your May rent cheque and handed it over to your landlord. The same landlord who has promised to fix that toilet that keeps running and is responsible for the high water charges you get in the mail from the City of Ottawa. You wonder, how can it get better? You wonder, can I make all this money count for me? You realize, I could spend the same amount of money and own this property. You now imagine yourself sitting on your couch, the bills have been paid, including this month's mortgage, the kids are playing and you are in control of things. What a change. Doesn't this feel better? Isn't it a liberating feeling? You realize, you have made the right decision. But this decision comes with a massive increase in responsibility. What are they? What should you expect? I will walk you through the most pressing things you can expect from this great change in your life.
If you water running into your basement after a heavy rain, chances are great that the cause is surface water puddling against the outside of the basement walls. This is the most common source of basement water problems and one that you may be able to fix yourself.
There are many solutions to this problem, including checking the gutters, ensuring the grade is sloping away from the house and making sure that the downspouts are leading far enough away from the house. Another solution that can help this problem as well as assist in maintaining a healthy and beautiful garden is to use a Rain Barrel. Rain barrels are simply a storage tank for temporarily holding stormwater.
Stormwater from your roof is diverted into a barrel connected to your downspouts and stored for later use. A house can have more than one rain barrel, and barrels vary in size and features.
Installing a rain barrel prevents runoff by temporarily holding rain. The rainwater can later be used, or emptied onto a permeable surface or a landform to allow it to infiltrate. Rain barrels can be simply a barrel, or can include special features such as spigots for attaching garden hoses, filters, mosquito-proof mesh, and child and animal-proofing.
If you go online, there are several places that you can order a Rain Barrel; however, if you would like to save some money, you can go to your local Hardware store and with all the right parts can make one on your own. If you follow this link, you will come across easy to understand instructions on how to make your own Rain Barrel. http://www.ottawa.ca/residents/water/waterwise/outdoors/lgt/rain_barrel_en.html
Good luck!!
Wellington Village, Ottawa
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The 2 story at 161 Hinton Ave. has been sold.
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Pineview, Ottawa East
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The 3 story at 2094 Eric Cresent has been sold.
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• 2 bath, 3 bdrm bungalow "With Attached Garage"
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MLS®
$329,900
Bel Air Heights, Ottawa
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Charming & spacious all-brick bungalow, with attached garage, awaits your touches; oak hdwd floors; huge, hi-&-dry lower-level rec room w/ wet bar, pwdr room, & plenty of space for additonal development; metic. maint. yard, w/ interlock patio, walks, & lush hedges; newer furnace; c/air; lovingly maint. by 1 family since 1959; lovely neigbourhood close to all amenities & necessities. Pool table included**
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Charming Three Bedroom
• 1 bath, 4 bdrm 1 1/2 story
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MLS®
$325,000
Woodroffe, Ottawa
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Charming 3 bdrm Character home completely refurbished from top to bottom. Hardwood floors, private decks,manicured gardens and central location only blocks to Carlingwood, the Parkway, and direct downtown bus routes.
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Amazing Renovation!
• 2 bath, 4 bdrm bungalow
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MLS®
$449,900
Woodroffe, Ottawa
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Amazing renovation! Contractor's own home. 4 Bdrm/2 bath One level living with skylight entry,pot lighting, wrap around multi level cedar decks and interlocking brick patio,hardwood floors, French doors,new high eff gas furnace and fin bsmt to include amazing high end parlour ideal for teenagers or in-laws.
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Location, Location, Location!!!
• 2 bath, 4 bdrm bungalow
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MLS®
$349,900
Woodroffe, Ottawa
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Beautiful overview from this high citing 3 bdrm 2 bath bungalow. Only blocks from Carlingwood shopping and the Parkway this open bright bungalow offers harwood floors, high ceilings fin bsmt, firplace and attch garage.
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