STEP FOUR: What to Buy?
Modified Article from CMHC Canada
Consider Your Current and Future Needs
Before you start searching for a home, you need to think about your needs both now and in the future. Here are some things to consider: What to Buy
Lifestyles and stages
Do you plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement? What to Buy
Try to buy a home that meets most of your needs for the next 5 to 10 years, or find a home that can grow and change with your needs. Use the worksheet: Home Features Checklist to see what you want, need and may potentially need in the future. Use the worksheet: Home Hunting Comparison Worksheet to note and compare features of up to 3 different homes to help you decide on the right home for you.
Choosing a Location That Is Right for You
Even if the home you choose has everything you need, the location might not be appropriate. When deciding where to live, you should take the following things into consideration: What to Buy
Whether you want to live in a city, a town or even in an out-of-town location
Where you work and how easy it is to commute
New Home, Previously Owned or Build Your Own?
When thinking about the kind of home you want, the first thing you should consider is whether you want a previously owned home (often called a resale) or a new home. Here are some characteristics that may help you decide: What to Buy
Diane and Wayne's dream home was a home with four bedrooms, a large family room, a big yard and situated in a preferred location. When they did their calculations, they realized that they couldn't balance that home and that location with their budget. Instead of putting aside their dream, they continued to look and they found a smaller house they could afford in a nice neighbourhood. After all, those extra rooms could come later!
Personalized choices What to Buy
You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.
Up-to-date with the latest codes/standards
The latest building codes, electrical and energy-efficiency standards will be applied.
Lower maintenance costs because everything is new and many items are covered by a warranty.
A home builder's warranty is usually available in all provinces (except Nunavut and the Northwest Territories). This can be important if a major system such as plumbing or heating breaks down. This warranty does not apply if you build the home yourself.
like schools, shopping malls and other services may not be complete for years.
Taxes such as the Goods and Services Tax
(GST) (or, in certain provinces, the Harmonized Sales Tax (HST)) will apply. However, you may qualify for a rebate of part of the GST or HST on homes that cost less than $450,000. For more information about the GST New Housing Rebate program, visit the Canada Revenue Agency website at, http://www.cra-arc.gc.ca.
You may have to pay extra if you want to add a fireplace, plant trees and sod, or pave your driveway. Make sure you know exactly what's included in the price of your home.
Easy access to services
Probably established in a neighborhood with schools, shopping malls and other services.
Landscaping is usually done and fencing installed
Previously owned homes may have extras like fireplaces or finished basements or swimming pools.
You don't have to pay the GST/HST unless the house has been renovated substantially, and then the taxes are applied as if it were a new house.
Possible redecorating and renovations
You may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.
Building Your Own Home
Some people prefer the challenge and flexibility of building their own home. On one hand you can get exactly what you want in terms of size, design, location, quality of material, level of energy-efficiency, etc. However, you should expect to invest lots of time, energy and more money then you may think...
Deciding on the Type of Home to Buy
There are many types of homes to choose from and each has its advantages and disadvantages. Think about your needs before making a decision. Don't forget to look beyond the walls. The environment surrounding your home can be almost as important as the environment inside it.
Susan, after looking at several suburban homes, decided that buying an urban condominium would give her more of what she wanted for less money. She found one with a full fitness center in a downtown area she liked, for less than a home in the suburbs, and with no worry about exterior maintenance, yard work or commuting.
The most popular style and the most solid investment. It is a free-standing home which sits on its own lot thereby offering a greater degree of privacy.
A single-family home that is joined to another one by a common wall. It can offer many of the advantages of a single-family detached home and is usually less expensive to buy and maintain.
Two units — one above the other or side by side. The owner usually lives in one unit and rents the other.
Row House or Townhouse
One of several types of single-family homes joined by common walls. It offers less privacy than a single-family detached home but still provides a separate outdoor space. These homes can cost less to buy and maintain.
Link or Carriage Home
Houses joined by garages or carports which provide access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.
A factory-built single-family home that is transported to your chosen location and placed on a surface-mounted foundation. The term manufactured home has replaced the term "mobile home".
Also a factory-built home constructed in compliance with local building codes. The home is typically shipped to your location in two or more sections. It may or may not have a longitudinal sub-frame.
Refers to a form of legal ownership as opposed to a style of construction. Condominiums can be high-rise residential buildings, townhouse complexes, individual houses and low-rise residential buildings. Condominiums are also known as stratas in British Columbia or syndicates of co-ownership in Quebec.
Modified Article from CMHC Canada
Step five in the process of buying a home.
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