First Time Buyers

Use these 7 steps...

Find the Right Neighborhood.

Location, Location, Location. Choosing the right neighborhood is a critical part of ensuring the home you buy is the right home for you. Crystal steps you through the difficult task of selecting the right neighborhood.

Trust Your Instincts, But Do Your Homework

Most first time home buyers are drawn to certain neighborhoods because appearances. Perhaps you love mature trees or the intrigue of older houses, or perhaps the endless possibilities offered by vacant lots in brand new districts attracts you. These are all good reasons to consider one area of town over another, but there are other aspects of neighborhood life that you should think about.

Location often tops the list. Inner city housing tends to be more expensive that the suburbs, but the extra cost may be worthwhile if you dislike daily commuting. Try driving from your preferred neighborhood to your workplace a few times, at rush hour, and see how you like it. Good restaurants and evening entertainment are also - usually - more available to those who live near the city core, but avid golfers or horseback riders may not care. If you choose a new development on the outskirts of town and your children are of school age, be aware that they may face a long bus ride each day before new schools are built. Transit service may also be slow in coming to a new subdivision.

Whether your preferences run to old or new neighborhoods, you should understand local zoning regulations and plans. Inner city districts sometimes allow for commercial developments next to residential areas. Outlying districts are incomplete and that empty lot across from yours could just as easily become something you consider an eye-sore as it could become an asset, such as an elementary school. The lesson here is to check local zoning regulations BEFORE you buy.

New or Used, You Choose

Some people prefer the character of an older home to the potential of a new one; others take the opposite view. Each perspective has advantages and disadvantages.

Older neighborhoods offer fewer surprises. The trees lining the streets are mature, fencing and landscaping are in place, local shopping, restaurants and other amenities are well established, and construction noise and dust are not issues. The homes themselves may have been upgraded over the years and offer excellent value. Because the homes are not new, you will not pay Goods and Services Tax on your purchase. The chief downside is that maintenance costs are usually higher and you may need to renovate or redecorate.

If your chosen neighborhood is brand new, you'll benefit from the latest in building technology, energy efficiency and architectural design. Your builder may allow you to select certain features for your new home, such as paint colors, carpet styles and quality, and the style and quality of the kitchen cabinets, bathroom and lighting fixtures. The major(and most expensive) components of your house are often (but not always) covered by a builder's warranty for the first five years. Drawbacks - at least to some buyers include the lack of amenities, seemingly-endless dust and noise and the lack of landscaping. If the home is new, a special and government subsidized 4.55 % GST will apply to the purchase price.

Understand the Jargon

As you thumb through the newspaper and real estate buying guides, you'll come across many different terms. Some, like single detached home, are self explanatory, but others may not be. For example, are you sure about the difference between a semi-detached home and a duplex? Once you understand these terms, your search for the perfect home will proceed much more quickly as you eliminate types of housing that don't appeal to you. Here are a few definitions to shed light on the most commonly used terms in the housing industry:

  • A Single-family detached home is a house that stands on its own and is occupied by one family.
  • A semi detached home is a single family dwelling which shares a common wall with one other single family dwelling
  • A townhouse is one in a row of single family homes all joined by common walls. Some, but not all, are also condominiums
  • A duplex is one in a set of two adjoining housing units, either one above the other or side by side, and customarily have different occupants.

A condominium or condo may be an apartment or a townhouse or something else altogether; it is not a type of building but a form of ownership. Ownership is certain condo developments is sometimes restricted to those 55 years and older and sometimes pets are not allowed: rules and restrictions vary