First things first: To own or not to own?

First things first: To own or not to own?

By Marnie Bennett, Ottawa Citizen August 27, 2011

 Perhaps you are one of those fortunate first-time homebuyers for whom making the big decision to buy came easily . and then again, maybe you aren't. For many, the decision is difficult.

It's a decision that requires careful consideration. You may have concerns about financial obligations, the responsibility of upkeep or even the idea of being "tied down." Maybe you've just landed your first significant job and the idea of home ownership has only recently taken root in your imagination.

Or, like many people, you've been renting for what feels like forever and dread the thought of writing yet another cheque to help pay down your landlord's mortgage.

Numerous factors will influence your decision, but I'd encourage the fence-sitters among you to consider two overarching questions.

First, how strongly do you feel about owning your own home? While it's possible to live perfectly well while renting a good space, many of us find home ownership important to our sense of comfort, security and identity.

Certainly, there's also a sense of satisfaction in watching your home equity increase with every mortgage payment. As a solid investment, a home is hard to beat: How many investments provide shelter and comfort to the investor?

There is a big payoff - ultimately, you will own your home outright and monthly payments will be a distant memory. That is a luxury renters simply do not have.

This brings us to the second, more crucial, question: Can you afford it?

Remember, your first home need not be a palace. Assuming that you're steadily employed and do not plan to move again in the near future, the purchase of a modest home or condominium is nearly always a smart move. You may even find mortgage payments surprisingly affordable and not a far cry from your monthly rent.

Having said that, it is paramount to consider the additional costs of ownership. Things like property taxes, utilities, condo fees, insurance and maintenance can add up and force you way over your budget. I strongly suggest you speak with a mortgage broker or bank representative for help designing a realistic home budget.

I can assure you of this: If home ownership is close to your heart, you'll find a way.

Marnie Bennett is a leading broker with Keller Williams VIP Realty in Ottawa. She has more than 30 years' experience in real estate and has led her Bennett Real Estate Professionals team to the top spot internationally for Keller Williams. Contact her at marniebennett@bennettpros.com for a free report on 6 Things You Must Know Before You Buy.

Property Talk: Beyond the sticker price

Extra fees to watch for when buying a home

By Marnie Bennett, Ottawa Citizen August 13, 2011

Savvy home buyers know full well that a new-home sticker price is not the end of the financial story; they know to expect additional fees. Yet, even if the extra costs are anticipated, buyers may not be able to list them in great detail.

Here's a list to help you be prepared. It is important to know that most builders absorb the majority of these fees; however, not all do. Having a sense of what they are, especially since they can make a big difference to your bottom line, is a good idea. Don't be shy: Ask the builder's representative which costs are included and which are not.

Sales tax: Buyers often confess to being confused by Ontario's Harmonized Sales Tax (HST), which began July 1, 2010. The HST, which totals 13 per cent of the purchase price, only applies to new homes. Most home builders include HST in the price of the home. Government rebates may be available to those who purchase a new home where the HST is not included in the price. (Eligibility will vary depending on home ownership or investment properties.)

Land transfer tax: This provincial tax is applied to both new and resale homes.
It is a complex structure and depends on the value of the land. To give an example, a $300,000 home will require a land transfer tax of $2,975. Some first-time homebuyers may be eligible for a rebate of up to $2,000, so be sure to ask your real estate agent.

Utility and meter connection: These costs can add up to roughly $600.

Tarion Corporation warranty fee: This mandatory fee protects home buyers from construction defects and failure to fulfil terms of the purchasing agreement. This is also normally covered by the builder.
Legal fees: Most lawyers charge between $1,000 and $1,500 for their services.

Mortgage processing fee: These fees can vary but should cost a buyer anywhere from $500 to $1,000. Try asking your mortgage institution if these fees can be waived.

Moving costs: These vary greatly, depending on the number of movers hired, possessions to be moved and distance to be travelled. The going rate for two movers and a truck is $100 an hour. Reviewing additional costs is not the most exhilarating part of new-home hunting but, I can assure you, the better prepared you are, the less stressed you'll be with your final decision.

Marnie Bennett is a leading broker in Ottawa with more than 30 years' experience in real estate who has led her Bennett Real Estate Professionals team to the top spot internationally for Keller Williams. Contact her at marniebennett@bennettpros. com for a free report on 6 Things You Must Know Before You Buy.

Property Talk: Be open to possibilities when choosing a home

Here is an excerpt from Marnie Bennett’s column “Property Talk” from the Ottawa Citizen:

Property Talk: Be open to possibilities when choosing a home

By Marnie Bennett, Ottawa Citizen July 29, 2011

Buying a new home can be a very exciting process with a happy end result. But let’s be honest: it can also be quite the roller-coaster ride. In reality, few of us are able to delve into our bottomless pockets, find our dream home and then move in the following day — no matter how much we would love to.

Over the years, I’ve come to notice certain patterns in home-buying behaviour. While most buyers begin the search with a firm idea of the type of home they are looking for, it’s surprisingly common for them to change their minds mid-search.

Some buyers may realize they are no longer eager to mow a large lawn, while others may discover the detached home they have dreamed of is actually beyond their reach.

Buyers should be encouraged to become familiar with the different types of properties on the market, and to keep an open mind as possibilities can be found around every street corner.

Condominiums

Condos are a type of property most often purchased by single people and couples without children, and with good reason. They offer a maintenance-free style of living that is ideal for those with busy work and social calendars.

In these buildings, owners pay a monthly maintenance fee, known as a condo fee. These monthly payments are collected for the maintenance of the building and common areas.

It should be known that condos tend to come with smaller — and sometimes no — outdoor spaces. However, they often offer an abundance of lifestyle amenities such as fitness studios, home theatres, hot tubs, rooftop terraces and party rooms — an important consideration for downsizes and active singles.

While we often associate condos with downtown high-rises, they have become increasingly popular in suburban areas. They may be townhouses, semis or even detached homes, and are common in adult-oriented gated communities.

It may come as a surprise that the term condominium is actually a legal definition referring to the method of ownership, not the type of building.

When you purchase a condo, you are actually purchasing the interior space of the unit. This space is completely yours. The “common elements” such as elevators, recreational facilities, parking and outside grounds are jointly owned by yourself and the other homeowners in your condominium community.

Marnie Bennett is a leading broker in Ottawa with more than 30 years' experience in real estate who has led her Bennett Real Estate Professionals team to the top spot internationally for Keller Williams. Contact her at marniebennett@bennettpros. com for a free report on 6 Things You Must Know Before You Buy.

Downtown Ottawa becoming "Condo City"

Check out this article from the Ottawa Sun about Ottawa's booming condo market:

http://www.ottawasun.com/2011/08/09/downtown-ottawa-becoming-condo-city

Ottawa condo prices on the rise

Condos in Ottawa are proving to be an equitable investment.  Check out this article from the Ottawa Sun:

http://www.ottawasun.com/2011/08/09/condo-prices-set-to-keep-rising#disqus_thread

9 Short days until the no condo fee promo is over!

That's right, our no condo fee promotion is coming to a close at the end of the month so don't miss your chance to live condo fee free for 2 years (up to $5000 max).  This is a savings of up to $300 a month!  That is huge!  What could you do with $300 a month? 

Ladies, that would be a new Coach handbag every month for 2 years! 

Gentleman, that's upgrading the family mini-van to that stylish SUV you've been dying to have! 

What would you do with your savings?

Live Q West for as little as $1,211 a Month!!!

Monthly Carry Cost for Q Flat At Q West

Suite Purchase Price = $230,910

Furniture Package =    $10,000…………Actual retail value $15,000

Total =                            $240,910

15% down payment = $36,137

Mortgage Amount =    $204,733

CMHC =                          $3,584

Financed Amount =     $208,317

Monthly P+I =               $944   (based on 5yr fixed at 3.6% interest)

Property tax est. =       $267

Condo fee =   Free if you purchase in August … Actual = $129 x 24 mths = $3096

Total Monthly Carry Cost = $1,211       

Total Savings By Buying in August = $ 8,096