Are you ready for your first home?
One of the main questions you may eventually ask holding a pay cheque is regarding the place of living. Should I rent or buy?
The answer will depend on many factors; however the most important ones are your income and the stability of your work, besides your savings (not borrowed means) in the amount equal to 8% of the total price of the property you are willing to buy. 5% is the deposit and 3% is for the closing expenses.
Another factor to consider is your feelings as an owner or a tenant. What would you rather to do, to own or to rent? Perhaps you would rather to avoid long term liabilities. In this case a property ownership is not for you. But the fact is that if you have enough income to cover the home expenses such as mortgage, property taxes, and the maintenance fees (only for condominium owners) your vote should go for buying a property.
Majority of the first time home buyers, once had taken the decision, may feel overwhelmed with the time they have to spend considering many issues. Where to begin their search? Whom to trust and choose as the agent? Some may choose to do the research on their own without professional assistance of a real estate agent in Toronto.
There are few important facts to consider that may support, delay or even cancel that final step. Different lifestyles and family sizes must be counted when choosing between an apartment and a house ownership. The location and the neighborhood is another important thing to think of. The financial readiness however is the main factor. You have to be ready with mentioned earlier deposit, which has to be proven by your bank account statement. The next step before searching for home is the visit to your bank or any financial institution to get a pre-qualification mortgage approval showing the range of finances you will be approved for to obtain a property. That step is crucial as it is better to know in advance what you can afford rather than putting all efforts to find the perfect home and end up with insufficient financial means to cover the expenses.
With current low mortgage rates the decision of buying a property specially older condominiums in Toronto or the GTA may be easier than ever. Here is a simple example to illustrate: if you pay a rent of $900 a month, you can afford owning a one bedroom condominium in Toronto in old yet well maintained building worth of $125’000. If you pay a rent of $1300 a month, you can afford one bedroom apartment in a 8-10 years old building located within Condominiums downtown Toronto area worth of $250’000 including the mortgage, the property tax and the condo fees.
All above that, the market place stability of the Real Estate in Toronto can be your final asset and the concluding line in the answer to that question.
