Ottawa Home Buyers Ought Not to Forget These Costs
A poll conducted by Angus Reid shows that surprisingly, around 20 percent of Canadians forget to factor in the costs of insurance and maintenance when buying a house. In addition to this, the poll showed that homeowners are often surprised by the rising interest rates. It’s surprising how many homeowners and potential buyers forget to factor in essential costs when buying a house.
It’s important to keep track of your budget when you’re thinking of buying a house. A great deal of Ottawa residents often forget to factor in additional costs when looking at prospective houses. This can cause a great deal of stress when you find yourself unable to meet the additional costs that come with buying a house.
If you’re looking into buying a house, whether it’s your first or not, your budget is definitely something you have to consider. Along with the consideration of your budget, you have to factor in the cost of being a homeowner in Ottawa (yes, this means the yearly tax).
Something that people often forget when purchasing a home is that, if you have additional costs that you didn’t factor into your decision, you will most likely need to take on an additional mortgage in order to pay for it.
Taking on a mortgage to pay for unexpected expenses could put you in future financial distress. It’s no secret that taking out a loan you’re unprepared for is not only damaging to your budget, but it also has the potential to lead you down a much more complicated financial path.
The only way to truly be ready is to know what costs you should expect and always set a larger budget than you think you’ll need. Over-budgeting is a great way to ensure that you don’t suddenly run out of funds.
Buying a home in itself is a pretty uncomplicated process if you have your paperwork and funds ready. However, it starts getting complicated once you consider all the factors that could go wrong while you live in your house. This includes being ready for structural problems and renovations you might need to do.
The first thing you should look into getting is an Ottawa home insurance. Premiums vary depending on the property value along with the value of your belongings. It is also important to consult with your insurance company prior to renovating your home as renovations usually drastically affect a property’s value.
In addition to insurance, you should also factor in maintenance costs. A home requires constant work to keep it in its best condition, both structurally and cosmetically. This is something that prospective homeowners often overlook. A large property might require more upkeep and so it is important to be prepared for the costs of maintaining your home.
Maintenance work is ideally done at least twice a year. This varies from switching to a new furnace or installing new shingles on the roof. All things considered, you should alert your insurance company prior to doing any maintenance work.
Maintenance work in itself comes with any property. However, oftentimes homeowners tend to skip having the home professionally inspected prior to purchasing it. This proves a problem when you find things that need to be fixed that you missed when you initially checked the house.
The additional cost of these fixes could vary depending on the severity of the situation but investing an additional $500 to have the home inspected prior to purchasing it could save you tens of thousands of dollars in the long run.
Some people aren’t aware of a scam sometimes run in the property sales industry wherein properties are sold without full ownership. This means that if someone shows up with a copy of the original deed claiming their rights to the property you purchased, you could potentially lose your home. Investing in a legal attorney ensures that you are safeguarded against schemes like this and that you don’t have to worry about the paperwork.
Hiring a real estate lawyer could run you up to $500 with the exception of tax. However, you shouldn’t skip hiring a lawyer prior to purchasing any property if you want to avoid being scammed and running into potential legal problems regarding the property.
In addition to the ever-dreaded taxes, you should also keep an eye out for mortgage insurance fees. These premiums are paid to safeguard your lender’s best interests in case you don’t make your payments. This is brought up by lending companies usually when you are unable to provide an at least 20 percent down payment on the house you would like to purchase.
It is important to always look into your property and the history behind it. Some properties are prone to termites, flooding, or are close to an area that is frequently ravaged by fires. All of these probabilities add to the ever-growing list that you have to prepare for when purchasing a house.