Calgary First Time Home Buyers Guide – Part 2

October 6, 2012
By Cody Battershill

Calgary First Time Home Buyers Guide - Part 2

Well this is exciting! You have decided to stop renting and become a home owner. You are capable of making the financial commitment and want to start looking for a place to call your own.

There are many questions that arise when making the decision to purchase a home for a first time, especially these three…

What are the benefits of owning a home versus renting?

Am I really ready to purchase a home?

What can I afford?

Below are answers to all three of these questions, plus some very important questions for first time home buyers to ask when evaluating properties.

What are the benefits of owning a home versus renting?

Pride of Owning a Home for the First Time

There is a sense of pride that comes with owning a home. It is your home, meaning there is no landlord or parents stalking your every move or telling you what you can or cannot do. It means that you can paint, renovate or do whatever you choose to improve your space. It also means that any appreciation in your home value is to your advantage.

Owning a home for the first time is said to be the largest investment one makes in their lifetime, one which gives you and your family a “home base” where there is a sense of security and stability to accomplish your basic needs while growing and prospering. See more at 7 Reasons Why Owning is Better than Renting.

Building Equity

Every month, a piece of your monthly mortgage payment is used to pay off some of the principal amount remaining on your home loan. In doing so, the equity you have in your home increases. Having home equity means that you are saving, for now and for the future where if required you can borrow against it for many different purposes such as a home renovation, to start a new business, or even to send the kids to a post-secondary school.

Why rent and pay the landlords mortgage when you could pay your own and invest in your future?

Home Appreciation

Calgary has a strong real estate market. Over the last 10, 20, even 30 years, homes have seen a significant appreciation in price, therefore adding substantially to the net worth of home owners. Owning a home means you get to live and enjoy it while also making smart financial and investment sense.

Am I ready to purchase a home?

Do you have the financial capability to purchase a home? Are there any other things of importance in your life that require a large amount of money? A minimum down payment for purchasing any home is usually five percent, but more is ideal if you can afford it.

Also, do you plan to live in your new home for a while? Moving can quickly become expensive, and building home equity before having to do so is important. Make sure that you can see yourself down in the same house down the road in 3, 5, or even 10 years, just in case other circumstances arise.

What can I afford?

In order to purchase a home, you will need to meet with a mortgage broker or mortgage specialist. They will help you determine how much of a mortgage loan you qualify for and you are comfortable with. As first time home buyers, it is important to shop around as most mortgage companies have different terms, rates and options. The key to the entire process is to be educated, informed and comfortable! Find out more at these Key Tips for Calgary First Time Buyers!

Another helpful tool for first time home buyers in Calgary is the Canadian government’s Home Buyers Plan which allows you to use up to $25,000 dollars of RRSP’s towards buying a home. What a bonus! And you keep the rrsp tax benefits as long as it is paid back within 15 years time. Want to know more? Call me today!

Get informed and find out more at our Calgary First Time Home Buyers Guide.

First Time Home Buyers – Questions You Should Ask When Evaluating a Home

What kind of features do you want in your home? How many bedrooms, bathrooms? Home office space?

Do you need a garage?

Is the home private enough for your liking? Is there enough shrubbery, or a lack of?

Do you have any pets? Will the yard sizes and fencing do?

Are you planning on having children? What area of the city is best? Downtown, inner city, suburbs?

How much will my annual property taxes be?

How much will the utilities cost?

Is there any required fixes to be made before the home is ready for you to move into? If so, how serious were they and has the job been properly done?

Is there enough storage space?

Has a certified and experienced home inspector given you their evaluation, and if so what are the issues with the home? Are they minor, are they big? How could they affect the home’s value?

Location is Key!

How far away is work? How much gas will you be spending on fuel to get from point A to B from your home?

Is there enough green spaces, parks, pathways plus other outdoor recreational tools nearby?

What will the undeveloped land adjacent to the area be developed into, and when?

Are there any family and friends close by?

Where are the designated schools for your children and how will they get there?

Is the home in the vicinity of a railroad, airport, highway, industrial area or any others of the sort?

How does the noise differ at various times of day?

Have you heard of anything about the community from friends or family that might be concerning?

What is the crime rate for the area?

What is the age of the area? Is it a family oriented community where you can see your kids growing up?

How far away are essential amenities i.e. grocer, hospital, public transportation, church, retail, food, etc.? Is there enough close by to live comfortably without traveling too far for what you need?

Looking for even more tips? Be sure to check out our 7 Calgary First Time Home Buyers Tips today!

Calgary First Time Home Buyers...

You can pick up your phone right now and speak to me at 403-370-4180. Also, you can message me below using the contact form. I am looking forward to helping you get the best value and accomplish your real estate goals!