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What to Consider Before Buying a Home – Will It Meet Your Needs?

what to consider before buying your first homeIf you’re looking to buy your first home then you know it can be a difficult task, especially when thinking about what to consider before buying a home. Finding a home that meets all of your needs may seem impossible.

What to Consider Before Buying a Home

Your first home is a huge investment so it’s important you make the right decision the first time around. This is going to be your home for many years to come so you should make sure that you consider all of the most important aspects when it comes to buying your first home.

Price

One of the most important things to consider before buying a home is what price range you are comfortable with. Too often people decide on a home that ends up being more than they can financially handle. If you’ve been preparing to buy a home for some time then it may be easy for you to get a mortgage, but that doesn’t mean you should buy the most expensive home that the bank will allow.

Our neighbors to the south have shown us exactly what can happen when people purchase homes outside of their affordable price range. It’s important for you to speak with your mortgage broker so they can help you to assess your financial situation. They’ll be able to help calculate your monthly expenses in contrast to your income. Searching for a home will be far less time consuming if you know exactly how much of a mortgage you can handle.

Size

Size is one consideration that can’t be overlooked when searching for your first home. The number of bedrooms, bathrooms, and amount of parking space are all important things to consider when purchasing your home. If you only have a one car driveway, where will your second car go? It’s also important to consider your future plans because what you need now will not always be what you need down the road.

If you’re married, are you considering whether or not you want to have children in the future? If so you’ll probably need more than that one bedroom loft your spouse fell in love with. What about other family members? If there’s an elderly member of the family who is getting a bit too old to live by themselves, are you going to be the one housing them? Also, if you already have children, are they going to be there much longer or will they be heading out on their own soon? All of these considerations are necessary if you plan on having a home that meets all of your long term needs.

New or Previously Owned?

Another important choice that you’ll have to make before buying your home is whether or not you want to live in a brand new home or a previously owned one. There’s several important factors to consider when choosing between these two types of homes. The first and most obvious benefit to a new home is that its maintenance costs will remain relatively low compared to a previously owned home. You can also have a say in the design of the home if it’s still being built. This means you can literally build your new home around your needs.

Previously owned homes also have their own advantages. The most obvious upside of a previously owned home is that it will most likely come with several amenities that would cost extra if you were building an entirely new home. Fireplaces, basements and landscaping are all included in the price of a pre-owned home. These features, and several others, can add additional costs to a brand new home.

There are also other pricing considerations in purchasing a new home. A new home will be subject to GST. There are ways to get a rebate on this tax, but your new home must cost under $450,000. In certain provinces the Harmonized Sales Tax (HST) may also be applied. Once again this tax is subject to certain rebates but this should all be considered before deciding what type of home you want to live in.

Being in a position in which you’re ready to purchase your first home is an exhilarating feeling. There’s not much that comes close to the sensation and excitement. But there are far too many people who buy their first home based solely on the outer appearance without really considering whether the home is going to meet their short term and long term needs.

Knowing all of the considerations involved in buying your first home and knowing what to consider before buying a home will ensure that you make the best possible choice and that your family enjoys their home for generations to come.

Did we miss anything you considered before buying? Leave us your comment in the box below.