Of course you want to own your own home! This is Canada. Home ownership is the Great Canadian dream! And what do you mean what type? Aren’t they all the same?
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.
Advantages of Home Ownership
- It is the place you call home. You might say the place you rent is also home but when your landlord decides it is time to sell, you are forced to move. Owning your own home gives you the choice.
- 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.
- It is a way you can establish memories of your family. Your kids will grow up and leave but they will always remember where home was.
- 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.
Disadvantages of Home Ownership
- Home ownership has a cost to it. Acquisition cost and maintenance cost.
- Home ownership takes an investment of Time as well as money.
- Home ownership is not a liquid investment.
Types of Home Ownership
- Single Family Detached – 59% of residential properties sold this year on the MLS were Detached houses of some form or another.
- Attached Strata Properties – Commonly known as Condo’s or Townhomes. They represent about 41% of the MLS sales this year.
- 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 great for young families.
- 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.
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.
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. You need to know:
- Your budget – Remember having a life is good too. Don’t become house rich.
- Size of your family – Is it going to change soon?
- Location you like. Schools close, Shopping, Parks, Entertainment, Transit, Church’s. These all make for more sustainable living.
- List of must have’s and wants. Prioritize.
Navigating the waters of home ownership is full of technicalities, legalities and personalities. My best advice to you is to get a guide you TRUST. Your best interests are the required priority. Please feel free to contact me should you need any answers to your questions.
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