There’s a common adage regarding real estate that says “You make your money when you buy, not when you sell”. If you’re thinking about buying your first home (or second, or third), it’s imperative that you put the hype in perspective and make sure that whatever decision you make is a positive one.
Getting Caught Up
There is a very romanticized concept of a ‘dream home’ that most of us ascribe to. Whereas we used to want a quaint home with the traditional white picket fence, we now expect to have granite countertops, stainless steel appliances, a home theatre, and everything else you can dream up.
If you’ve ever spent time watching home buyer shows on HGTV, you probably find yourself feeling a similar type of depression when you walk into a kitchen that doesn’t have a granite countertop (as if you could EVER get any cooking done on any other surface).
These notions are what make it so difficult to put your purchasing decision in perspective. Finding that one home that’s ‘just perfect’ will override pretty much all of your sensibilities about price and functionality.
Decide In Advance
To avoid getting caught up, you have to make some decisions in advance. You have to know what you NEED, and what are some nice-to-have’s. You absolutely need to have a maximum price you can afford. Knowing mortgage rates today will also help you understand exactly how much you can afford, as calculating your monthly payments will really help determine what’s possible.
Dreams And Goals
The whole idea of a dream home is a bit suspect. None of our parents bought their dream home as a first home, and if they ever ended living in that dream home it probably wasn’t until much later in their lives. Spend some time thinking about what’s really important to the quality of your life and your family’s lives. An older kitchen doesn’t mean bad tasting food, and smaller bedrooms just means less room for junk to accumulate.
It’s amazing what you can get used to in a short period of time, and by being strategic about changes you make to the home you can maximize both your budget and your return on investment when you sell.
Your First Home Is Just The First Step
Most of us won’t own a home for 30 years. Job changes, family changes, or neighbourhood changes may all convince us to move, so keep the rest of your life in perspective. Buying smart now will mean more options in the future. On the other hand, going for that dream home off the bat will mean a tighter budget, greater sacrifices, and more danger when it comes time to sell.
Be smart about every part of the purchase. Compromise where you can, use sites like MortgageRates.ca to find the best rates, and negotiate as much as you can on the pur
Leave a Reply