Real Estate 101 – Understanding the True Costs of Home Ownership

Whether you are looking to buy your very first home or an investment property, there are a few more things to consider that aren’t exactly the price tag. The price tag is just one aspect of what you, the potential buyer, have to pay, but did you know that you also have lawyer fees? Land transfer fees?

For the potential homeowner, here are costs that one should always keep in mind and not forget when entering into the real estate market.

Taxes – Regardless of where you are, there are city and provincial taxes to consider. The values will vary; therefore, it is best to discuss with your broker just how much you are going to be paying on top of the actual of the house. Sometimes the taxes can impact just how much one can afford; therefore, one should always factor one’s mortgage limit along with the taxes.

Lawyer Fees – Unless you have a degree in property law, you are going to want to ensure you hire a lawyer who can go over the contract and paperwork of your potential home. Lawyers are essential to the home buying process as they can ensure that you aren’t being scammed or taken advantage of. As well, your lawyer can clarify any clauses that the seller may have included.

Land Transfer Tax – This is a tax that is separate from the previous tax. This is a tax that is incurred on the land and that the new homeowner is required to pay. This is dependent on the city and municipality. For example, if you are looking at purchasing a half-a-million-dollar home in the Greater Toronto Area, your land transfer would cost approximately 6,000 dollars.

Insurance – When it comes to first-time homebuyers, insurance is essential if not recommended. While you may think it’s not necessary, it is best to see it as a long-term investment. With real estate, there are a few types of insurances that you should consider. There are mortgage and title insurance.

Home Inspection – Similarly to insurance, one thing you don’t want to skimp out on or avoid doing is a home inspection. This is particularly important if you are buying an older home that has undergone any repairs or upgrades. Spending a couple hundred dollars to have a professional inspect your potential dream home can go a long way in securing your investment. It is better to put the time and money in now to know whether or not there are any flaws or imperfections that could get costly.

While these are just a few of the hidden fees that are associated with buying a home, it’s crucial that when you get your approval amount, purchasing a home at the top of the bracket isn’t always recommended. Why? Because there are many other fees, hidden and not, that can quickly add up. For example, an older home may require unexpected repair. Still, if you have capped yourself and your budget, this can be very dangerous financially. What do you do when you’ve maxed out your bank account but need to repair your roof or furnace?

Remember, when the time is right, and you are ready to buy that house to call home, take the time to invest and uncover the potential hidden costs that aren’t always disclosed when entering the market. Shop smart and be smart when buying a house and making the financial investment.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom