STEP
1. HOUSING NEEDS
Save TIME, DISAPPOINTMENT and maybe even MONEY. WORK OUT exactly what YOUR NEEDS ARE before YOU start HOME HUNTING.
GETTING STARTED
For most Canadians, owning their own home is a lifelong dream. It brings with it pride of ownership, security and the feeling of control over which improvements are made and how much they cost. There’s also the chance your home will increase in
value, making it a sound financial as well as a lifestyle investment.
When buying a home, you have to juggle three important factors — your prospective home’s location, style and cost. For example, your goal may be to buy a single family detached home in an
urban neighbourhood for $100,000. But you may have to settle for two out of three. An urban semi-detached home may be available for your price, or you may need to look in the suburbs for the price and style you want.
Location, Location, Location
Your choice of location depends primarily on where you work and whether you want to commute, and also on your family lifestyle.
Do you want to live near recreation facilities such as a golf course or skating rink? How close are your children’s
schools? Is public transportation available?
Location is |
an investment |
too. |
Urban living usually offers the largest range of home styles and often is closer to amenities such as restaurants and theatres. On the other hand, you may get more for your money in the suburbs.
Suburban homes often have larger lots and larger square footage than urban homes in the same price range.
While suburban homes can have the advantage of being newer, amenities like shopping or play-grounds may not be available yet in a new
subdivision.
If you’re considering moving to an unfamiliar neighbourhood, take time to drive or walk around it, both during the day and in the evening. Make some notes. It’s also a good idea to travel the route to and from your work. (See the Home
Hunting Worksheet)
There are many other factors you should consider when choosing the location of your home. For example, have property values risen or fallen in the neighbourhood?
Future development can also affect property values and
property taxes, so you’ll want to consider whether there are any changes to zoning pro-posed or any major developments planned.
To do this, contact the local municipal office regarding planning and zoning bylaws. Is a highrise office tower going
in next to your home? A new highway? Zoning bylaws may also affect your own plans, such as conducting a business from your home.
Some real estate representatives suggest that, if you’re considering the future resale value of your home, it’s
wiser to buy a modest home in the best neighbourhood you can afford than the most expensive home in a modest neighbourhood.
How close to home are the services you need?
2.5 km |
5 km |
7.5km |
10 km |
PLACES OF WORSHIP |
TRANSPORTATION |
WORK |
DOCTOR/DENTIST |
SHOPPING |
POLICE DEPARTMENT |
HOSPITAL |
SCHOOLS |
FIRE DEPARTMENT |
RECREATION |
Think about what kind of house you want.
|
Types of Housing |
Description |
|
Single family detached |
A free-standing home which sits on its own lot and is occupied by only one family. |
|
Semi-detached |
A single family home that is joined to another one by a common wall. |
|
Duplex |
Two units, one above the other. The owner may live in one unit and rent the other. |
|
Row or townhouse |
One of several single family homes joined by common walls. These can be condominium or freehold units. |
|
Link or carriage |
Houses, freehold or condominium, joined by garages or carports which provide access between the front and rear yards. Builders sometimes join basement walls so that link houses appear to be single family homes on small lots. |
|
High-rise condominium |
Multi-story residential building containing condominium units. A condominium is not a type of house but a form of ownership. |
|
Mobile or manufactured |
A factory-built, single family dwelling that is transported to your chosen location and placed on a foundation. |
|
New or Resale
There are advantages and disadvantages to both new and resale homes. Here are some of the characteristics of both that may help you make your choice.
New Home
ADVANTAGES
- You may be able to upgrade or choose certain items such as siding, finish materials, flooring, cabinets, plumbing and electrical fixtures.
- The latest building code, electrical and energy-efficiency standards will apply. E A builder warranty is usually available in all provinces and the Yukon (but not the Northwest Territories). This can be important if a major system, such as plumbing or
heating, breaks down.
- Unless you are a builder, warranties do not apply to homes you build yourself.
DISADVANTAGES
- Neighbourhood amenities, like schools or shopping, may not be complete if the house is in a new development.
- There may be construction noise and traffic.
- There may be little to no landscaping or trees.
- The 7% GST applies to new housing. However, there is a rebate, to a maximum of 2.5%, on homes which cost less than $450,000.
Resale Home
ADVANTAGES
- It will probably be in an established neighbourhood.
- Landscaping is usually done and fencing installed.
- It may have upgrades such as a built-in swimming pool or finished basement.
- There is no GST unless the house has been renovated substantially, and then the tax is applied as if it were a new house.
DISADVANTAGES
- Maintenance costs will likely be higher than for a new house.
- You may require a professional home inspector to check for structural or other problems, such as a leaky basement or faulty roof.
- You may need to redecorate, or even renovate.
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