Looking to Buy a Home? You’ve Got Options
Buying a house is a major decision that deserves to be carefully considered. It’s important for would-be homeowners to take the time they need to ensure that their new home is perfect for them. There are a variety of options to consider, and individuals and families who are looking to buy a house should always consider both their requirements and their budgets before making a purchase. At first glance, all houses may seem pretty similar, but the reality is that there are a variety of different housing options — and not even all of them are traditional houses! Consider the following options when deciding what you want your new home to look like:
- Detached home
- Duplex
- Condo
- Apartment
- Mobile home
All of these different housing options have advantages and disadvantages including different features and price points. Working with a top realtor in Victoria, BC can help you to determine which is the best choice for your needs. You can also choose to head right over to our beautiful Listings Page to see our currently available properties.
Budget
Speaking of price, your budget will be a major factor when it comes to deciding on the best home for you. It’s important to factor in expenses like closing costs when you calculate your budget — this way, you can avoid any unpleasant surprises. The good news here is that there are several different options when it comes to financing your home. Start off by consulting with your bank to determine what type of mortgage loan they may be able to offer you.
Mortgages
Before signing a mortgage, it’s important to make sure you know all the details. Are you looking for a conventional mortgage (up to 75% of the price of the house) or a high-ratio mortgage? (greater than 75% or the appraised value of the house) How long is the amortization period? (Typically mortgages are paid off over an amortization period of 20 or 25 years). Most importantly, how much can you afford to pay in mortgage payments? A general guideline is to calculate 30% of your gross monthly income to get an idea of how much would be a reasonable monthly payment for you. If you include any other monthly debts such as car payments, phone bills, and credit card payments, it shouldn’t add up to any more than 40% of your gross monthly income. This leaves you enough financial flexibility to cover any other necessary expenses and keep some money in savings.
Ownership
There are a few different types of home-ownership, and which one applies to you will likely depend on which type of housing option you’ve chosen. For detached homes, a freehold interest or a fee simple is the most common type of ownership. This means that you own the house and the land it’s on in a very traditional sense and you have total freedom and control over it. A strata title, on the other hand, is more common for duplexes, condos, and apartments, because it gives you ownership of a specific unit within a larger property, as well as shared ownership of common spaces. If you’re unsure of which type of ownership best suits your needs or if you have any other questions about the process of purchasing a new home, contact the best realtor in Victoria, BC. We’ll work with you to ensure that you’re well-informed and happy with your purchase.