Being a first time home buyer is exciting, but also stressful — there is so much to consider and so many decisions to be made. It is also a challenging time as the rules around getting mortgages keeps changing and the costs associated with home buying just seem to go up and up.
So what is a first time home buyer to do? How can they get into the market without drowning in debt?
Purchase Plus Improvements
A Purchase Plus Improvements program is for home buyers who want to get into the housing market but can only afford a home that needs a bit of fixing up.
The program allows home buyers to purchase a home that needs some TLC and roll the costs of the improvements into their mortgage. This means that instead of taking on a mortgage and then getting a home improvement loan, homebuyers can combine the two together into one single payment to pay off both.
Often, first time home buyers are faced with tough choices. Should you try and get a bigger mortgage to buy the newer home, or the home with the renovated kitchen…or do you get a small (and more manageable mortgage) and get a home that needs some work?
Getting a larger mortgage might sound appealing, but you don’t want to be house poor. Having a lovely home is wonderful, but not having any extra money to get out of the house every so often can make you feel trapped.
Sometimes, especially for first time home buyers, the only way to get into the housing market is to purchase a home that needs some fixing — and that’s okay, because now you get to make it your own!
Sweat equity pays off
When you purchase a home within your price range and then spend some effort to make it the way you want, it’s not only satisfying but it also improves the resale value of your home.
Sure, it may have been nice to buy the house with the nicely stained hardwood floors, freshly painted walls, and fancy countertops — but with a little effort, you can do that work yourself.
Spending some time and effort to do home improvement work yourself will save you a lot money. You will feel a sense of pride in seeing the fruits of your labour, and you will be able to create a home just as you like.
Hiring a contractor
If the home you wish to buy requires more specialized work than you can do yourselves, you can ask a contractor to assess the job and provide you with a quote. This quoted cost can then be applied to your mortgage and you can hire a contractor to help you get the work completed.
There are lots of decisions and it can be confusing. Give us a call to discuss your situation and let us help you figure out a game plan. Click here to contact Suzanne Hagan in Guelph today, or give her a call at 1-519-241-1682.