Home Ownership Facts 
Things you need to know before you buy.

Financial Security
This is one of the greatest reasons to purchase a home. Land values go up steadily and even though there is a chance that you may loose money on your investment, that happens rarely. It will not happen if you do your homework and purchase the right home for you and at the right price.

There is no capital gains tax on principal residence, so in essence, it is possible to move up the property ladder quite fast and steadily in the good market and right location if you progress wisely and with care. Some of my Clients were able to purchase their first home 16 years ago with 5% down payment (less then $8,000.00). They were mortgage free within 11 years.

When housing prices rise, and we all know that most of the time they do, your home can provide you with some financial security due to capital appreciation. There fore the home ownership usually equals smart investment.

When you own a home, you own an asset, the mortgage on your home is a liability, but while paying off your mortgage amount, the value of your asset, your home steadily moves up as well.

Here you may consider this: When you rent an apartment or a home, you are paying off someone else's mortgage, while taking care of their asset, the rental unit that you live in.

So if you do have a stable financial situation, why not do the same for yourself. Consider home ownership for yourself. You may be surprised that the difference between the rent payments and the mortgage payments... may be less than you thought.

You may think that the bank will never give you a mortgage. Well, you will never know if you don't ask. Just remember, it has to be right for you. If you have any doubts, step away, and wait for the better time in your life for home ownership.

Flexibility
You can decorate or renovate your home to meet your own family's personal tastes and needs.

Stability
Home ownership, among other benefits, makes you "stable" in the eyes of your creditors, why? Because you own a big asset. You are stable, you can't just pick up and go... It takes time to sell a home, so there is a security build into for them.

We covered the pluses... what about the other side of the coin?
Ask yourself some simple questions:

Do you enjoy moving often? Do you like to live in different places? Do you prefer using your savings for such things as vacations, retirement or starting your own business? Do you enjoy not having to worry about regular maintenance and repairs?

If you answered yes to any of these questions, you may not be ready to own a home yet. While you probably have a lot of good reasons for wanting to buy a home, you also have to consider your reasons for not wanting to.

Remember that buying a home is one of the biggest emotional and financial decisions you'll ever make, so prepare yourself to make a knowledgeable decision.

Although buying a home almost always seems like a great idea, it is important to understand what homeownership involves.

Of course, being a homeowner is something to be proud of but it also means having to invest money, time and energy and take on added responsibilities. So, before you decide to buy a home, make sure you're ready.

Although it is nice to think about the positive aspects of owning a home, it is important to consider the downsides as well. Here are some of the main disadvantages of owning a home:

Financial Stress
Depending on your financial situation, coming up with the down payment, meeting regular mortgage payments and other ongoing costs, may be an issue, and can put considerable stress on your finances.

Maintenance
Keeping your home in good shape requires time and money. Sometimes time is all it takes, but many of us don't have enough of it. The money amount that you need for the upkeep of your home doesn't have to be considerable, and this goes back to your financial situation, you will now best what it truly is.

Higher Costs
There are additional costs that you did not have as a renter. Property taxes take up considerable amounts each year and in most municipalities it rises steadily each year.

More Responsibility
You alone are responsible for payments, repairs and maintenance. Again, you need to look deep inside to admit what kind of person you are, and what you can truly handle.

Final decision about home ownership is yours alone.
Modified Article from CMHC Canada

So you see, home ownership may not be for everyone, and before you plunge into the deep waters of the local housing market, be sure that you are clearly aware of all that comes with the privilege of owning property in Canada.

Once you decide, that "YES! I want to own a home!", be sure to give me a call, will get you on your way to the home ownership.

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Step two in the process of buying a home. 
10 Steps
Buyers Main Page
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I'm Always Here to Help

If you have questions about up-to-date market conditions, would like to get my Price Analysis, or simply would like to know what that home next door is listed for... I'm always available to provide that information.

Perhaps you are considering a sale, but are just not sure what would be the best way to proceed in this changing market.

Or maybe you are the First Time Buyer, excited to enter the Housing Market, and have more questions than your would like to handle on your own...

Please give me a call at 705-241-4249

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Mary Stanton is a Professional Member or is associated with the following Organizations: