Resale Homes
Resale Homes
Don't stick your neck out when buying a new home
Unless you're a turtle, you don't want your home to be a big weight on your back.
But for many people, the thought of buying a home is just that, a weight. Where to look? What to look for? How much to pay? The considerations go on and on.
You can take much of the anxiety out of the process by doing some homework first. A great place to start is figuring out just how much you can afford. After all, answering that question will help you focus on your realistic options.
First, get a fix on your net worth. That's the difference between your assets (what you own -- things such as savings accounts and bank deposits, stocks, bonds, vehicles) and your liabilities (what you owe, such as loans, credit card balances, unpaid bills, existing mortgage and so on.)
You'll need this information when visiting your financial institution to discuss a mortgage, and to help you assess how much you have available for your down payment and initial costs.
When you look at what you can afford, don't just consider the purchase price. There are all sorts of extras including the inspection fee, appraisal fee, legal fees, closing costs, property insurance, and moving costs.
It all adds up, perhaps tacking on two per cent or more to the price of the home.
Then there are the financial obligations that you must be prepared to assume on an ongoing basis: monthly mortgage payment; property/school taxes; utilities and ongoing maintenance. With a new home, you may also have landscaping costs including new fencing and decks as well as driveway repairs, etc.
However, when buying a new home, many builders provide assistance for the legal costs of registering the mortgage.
They can also have the appraisal fee paid for and can include some of your extras, such as driveways, fencing and decks. All this could save you much of those closing costs.
Opinions expressed in this article are those of the writer only. Any rates or amounts cited were correct at the time of submission. Bill McFarlane is senior sales manager, builders markets For RBC Royal Bank.
Resale Homes
Tours will give you a taste of downtown living
Did you know that over 13,000 people live in downtown Winnipeg? And more than 700 new residential units are completed or underway in the downtown area?
You'll have a chance to find out all about living in the heart of the city at the Downtown Living Tour & Exhibition, which takes place next Friday and Saturday, May 8 and 9. Presented by the Downtown Winnipeg BIZ and CentreVenture Development Corporation, the Downtown Living Tour showcases just what Winnipeg's downtown area has to offer as a neighbourhood. You'll get a taste for urban living and see just what's going on in downtown Winnipeg.
It starts with the brand new Manitoba Hydro Building. The Downtown Living Tour & Exhibition is based in the main floor atrium of the new Hydro building on Portage. From 10 a.m. to 5 p.m. on both Friday and Saturday, the free event will feature over 20 exhibitors and 10 tour locations, which range from new condominiums and apartment blocks to a renovated hotel and hostel.
On Friday, the event is geared towards people working downtown. If you're looking for something to do to get you out of the office, you can take a short, "lunch-break friendly" tour. Forty-five minute bus tours to the Strand condo and Residences on York executive apartments will leave the Hydro building on the hour at 11 a.m., noon and 1 p.m. Space will be limited, so call ahead and book your spot at 958-4631.
On Saturday, 10 different locations will be hosting public open houses from 11 a.m. to 4 p.m. A Downtown Living shuttle bus will run every 15 minutes, so you can hop on and hop off at each site or you can get there on your own. There are a whole host of tours taking place on Saturday, including everything from a luxurious condo at The Excelsior on Waterfront Drive to the Kiwanis Chateau, a 55-plus life lease building.
For more information about the Downtown Living Tour & Exhibition, visit:
www.myplaceisdowntown.com.
Resale Homes
Manitoba home values continue to increase
Despite assurances all along that the housing situation in Canada was nothing like what was happening in the United States, Canadians have still been somewhat reluctant to take advantage of favourable buying conditions.
Although this customary Canadian cautiousness has served us well over time, it has also caused us to miss out on certain opportunities. A couple of weeks ago, TD Economics released an excellent comparative analysis of the two countries situations.
In the United States, housing starts had been exceeding demand for four years. Overbuilding causing a large inventory of houses was excessive. In Canada, what appeared to be overbuilding was, in fact, a compensatory response to a decade of undersupply.
In a couple of major urban centres in other provinces, there may be examples of oversupply or inventory, but not in Manitoba. There is no anticipation of price devaluations here. As a matter of fact, home values continue to increase.
Mortgage interest deductibility from personal income tax, steering households towards larger mortgages, encouraging "flipping" and discouraging the accumulation of home equity hurt the U.S. market. Canada's tax laws do not permit similar deductions and we find a great degree of comfort in home ownership.
Homeowner equity in the U.S. was below 40 per cent before the economic tailspin. Obviously, it is much lower now. In Canada, we have not allowed credit to overextend our capabilities and equity averages over 55 per cent.
In Manitoba and Saskatchewan, that number is even higher. Canadians can afford to own their houses, diminishing the likelihood of the snowball effect of foreclosures south of the border.
New home ownership remains a sage investment in Canada and Manitoba. The market continues to be strong with no signs of a duplication of the American situation. Now is definitely a good time to investigate the purchase of a new home.
This column prepared by the Manitoba Home Builders' Association.
