Information for First Time Buyers
Buying a home is a stressful business. Buying your first home can appear to be overwhelming. But like that first swim of summer there are some things you should do before diving in! Here is how we can help.
- First and most important step. Decide that "I want to buy" and "I want to buy it now"
- Get pre-qualified for a mortgage. Knowing how much you qualify for and the amount you are comfortable borrowing, (and paying for..), will give you a range of options in the condo market.
- Take me to a Broker Now. Click Here for INDEPENDANT MORTGAGE BROKER to provide you with a mortgage solution that meets your needs.
- First Time Buyers Pay NO Property Transfer Tax below $475,000. Know the market your in. The fact you are here means you are well on your way. You are spending the time to get educated. Getting an education is costly, as you well know. Not getting an education can be even more costly. Hiring us will cost you nothing because we are paid by the seller.
- Hire a condo specialist, you are the beneficiary of our market knowledge, and skilled negotiations, who will lead you every step of the way. Since you have found our website you don't need to look any further.
- What is your condo going to cost you? Whether you are buying an existing condo or a condo in a new project, you need know how much you are going to pay. Let us consider the costs involved in a typical transaction in downtown Victoria, in British Columbia. You are purchasing a 1 bedroom and 1 bathroom unit in a new condominium project for $550,000 and are taking possession on December 18, 2015. (A Friday.)
You may pay on closing:
You may have all the closing costs above except for #5. (Only payable on existing condos.)
- Application fee/ appraisal fee
- Property transfer tax (to the Government on closing)
- Legal Fees
- Prepaid property tax (debit or credit) adjustment
- Monthly strata fee (debit or credit) adjustment
- High ratio mortgage insurance premium (added to mortgage)
- Parking stall lease payment (if not sold with unit)
Condo fees are always due on the first of every month. (January 1, 2016)
Your first mortgage payment is due one month after your transaction closes. (January 18, 2016)
Property taxes can be paid for you or by your bank on a monthly basis.
When you buy a new condo from floor plans in the model suite, your first closing is when you occupy the suite. You do not own the unit yet and you are known as the occupant. You will pay the Developer an occupancy fee until the building is registered with the Municipality in which it is built. ( Victoria, Esquimalt, Vic West etc.) Your occupancy period could range from 3 to 6 months.
- The real estate market in Victoria and rest of Canada has been very strong and in Victoria it is still a Seller's market because of historically low active listings while the Condo market offers plenty of choice at all price levels.
Should you buy the first condo that you see? Well, if you buy from a model suite, you will have to trust the advice of your agent and your instincts. Making a decision to buy without the guidance of a knowledgeable and trustworthy real estate agent could be costly.
When to jump in? After doing your homework, (I was a teacher in an earlier life), mortgage pre-approval in hand, it is best to take a deep breath and jump! You will find that the water is a lot warmer once you are in and when you come up for air you will be surrounded by a lot of people just like you. Time and again it has been shown that indecision usually costs a buyer more than making an educated decision.
- What to offer? Well, it depends. Perhaps not the words you want to hear but there is no right answer. If you are making an offer on the new condo, (in the example above), then you are most likely going to be paying what the developer is asking in the current market conditions of brisk sales. If it is a resale condo, then you would be provided with all the comparable past sales, allowing you to form an opinion of value. Together with your agent you can make an informed, strategic offer. If there are no other competing offers the field is wide open. If there is more than one offer you may be forced to pay a premium if you really want it. In this situation, an experiencedand knowledgeable Realtor, is the difference between winning and losing, the property you want.
- You have made the offer and it has been accepted. Congratulations!
- Buyers Remorse. The polite term for Cold feet. You are tossing and turning. You can't go to sleep. Relax. It's normal. Carry on. Go back and re-read number 4 and relax.
- Firmness and resolve. Go forward with the courage of your convictions, visualizing yourself in your new home, celebrating a birthday or anniversary, with family and friends and being congratulated on buying your new home.