Of course you want to own your own home! This is Canada. Home ownership is the Great Canadian dream! Do you know there are different types of ownership?
Home Ownership – Great Canadian Dream
Let’s take this one step at a time. Home ownership has several different aspects that can affect your decision. Some advantages and some disadvantages. Click here for 6 mistakes Home Buyers Make.
4 Advantages of Home Ownership
1. A place you call home. The place you might rent is also home but when your landlord decides it is time to sell, you are forced to move. Owning gives you the choice of when to move.
2. It is a great investment. With Real Estate you are likely going to see your investment grow over the longer term. Sure their might be some ups and downs but the majority of wealth is built through wise investments. You might want to check out a recent post we did on Property values and projections for 2017. Click Here.
3. Memories for your family are established in the family home. Your kids will grow up and leave but they will always remember where home was.
4. It is where you can demonstrate your ‘pride of ownership’. Paint your home and its walls any color you like. Decorate it with your style. Show it off. Your earned it.
3 Disadvantages of Home Ownership
1. Home ownership has a cost to it. Acquisition cost and maintenance cost.
2. Home ownership involves an investment of Time as well as money.
3. Home ownership is not a liquid investment. Many people in rising markets have used their home equity the same way as they use the ATM at the bank. Not always a wise thing to do.
4 Types of Home Ownership
1. Single Family Detached – 56% of residential properties sold this past year in Abbotsford on the MLS were Detached houses of some form or another. You would usually recognize this type of home by knowing it is not attached to anything and the houses around it are all different. You can be fooled sometimes by Bare Land Strata lots but a knowledgeable REALTOR would be able to explain to you the difference.
2. Attached Strata Properties – Commonly known as Condo’s or Townhomes. They represent 44% of the Abbotsford MLS sales this year. The difference between the two is a Town House will have its own door to the exterior.
3. Co – operatives – Usually town homes or condos owned by a corporation that sells shares in the corporation to the residents. Quite often a lower cost form of housing and can be great for young families. Most Co – 0ps do not allow the share holder to participate in any appreciation of value in the unit. So if the market goes up 10% your shares remain at the original price. Conversely, if the market decreased 10% your shares remain at the original price.
4. Lease-hold properties – Resemble strata with the main difference being the existence of an underlying lease on the land so ownership is subject to the lease. Not to common in Abbotsford but Chilliwack is another story. Knowing the terms of an underlying lease can greatly affect the value of your property.
Rental properties is kind of a form of ownership because as with all of the above, your payment affords you a bundle of rights to use the property. Knowing which rights you are purchasing is important. In British Columbia, you can learn your rights as a Tenant or Landlord by visiting this site. CLICK HERE
Home ownership of a strata property has become somewhat of a hot commodity lately as the price of the detached house slipped out of reach of many. And it is good to have this as a choice. When looking at Strata Properties, there are a number of technical issues that come up and will be the topic of an upcoming post.
Home Ownership is a good thing to consider. When looking into it make sure you go in with your eyes open.
4 Things You Need to Know Before You Buy:
1. Your budget – Remember having a life is good too. Don’t become house rich and life poor. Just because the bank says you qualify for $XXX,XXX mortgage doesn’t mean you need to spend it all.
2. Size of your family – Is it going to change soon? New additions or Empty Nest? Sometimes the care of elderly parents is a consideration.
3. Location you like. Schools close, Shopping, Parks, Entertainment, Transit, Church’s. These all make for more sustainable living.
4. List of must have’s and wants. Here it is important to prioritize.
Navigating the waters of home ownership is full of technicalities, legalities and personalities. My best advice to you is to get a REALTOR guide you TRUST. Your best interests are the required priority. Please feel free to contact me should you need any answers to your questions.
Feel free to like, share or post comments