Many realtors are on the side of homeowners. Since they earn their commission from them, this makes sense to the parties concerned. However, there is always a temptation to dwell on a home’s major benefits, and dare we say air-brush out the less attractive aspects. Stonegate Equity Ltd. believes it is more ethical to balance sellers’ and buyer’s interests. This is why we believe our purchases and sales generally go through.
The True Costs of Buying a Home
Sure it is cheaper to rent than to buy, especially in a semi-depressed market such as lingers on in Calgary. However, renting real estate is literally throwing money away, because you have nothing to show for it afterwards except memories.
Real estate buyers on the other hand acquire a real interest in a fixed asset they can eventually pay for in full. Although we stress that many legendary claims of rapid wealth growth are just that, urban legends.
We recommend our buyers look beyond the down payment, transfer costs, and moving costs when deciding if they can afford a particular property. Settling-in costs can be high when we find the curtains don’t fit the windows, and discover what plants cost when we decide to upgrade the garden.
Furthermore, a bathroom that seemed acceptable on first sight can become an expensive project, when we soak in the bathtub, look up at the ceiling, and decide we don’t like the wall tiles. Therefore, we recommend lifetime renters and first-time time buyers make a conscious decision not to renovate until they have lived in their new home for a year, and know the priorities.
The True Costs of Owning a Home
While they will no longer be paying rent and the mortgage payments may be lower, other costs previously included in the rent can add significantly to the cost of owning a home. Utility connection fees, and deposits for water, gas and electricity costs must be paid, and we must also set aside provisions for levies and rates.
Insurance is a must, while routine maintenance is an ongoing chore. That said, most Canadians seem to manage well. Although they may no longer have the care-free lock-up-and-go living style they once enjoyed.
Stonegate Equity Ltd. posted this article because we want our new real estate buyers to succeed with their purchases, and be happy in their new homes. Many customers say our caring approach sets us apart. They all agree our lower services fees compared to realtors helped them finally afford their own homes.