Many people consider buying a home one of the most important decisions they make in their life but actually, buying a home is relatively easy. There are several hundred good books on the library shelves on the topic of home buying, how to select a home, what to look for and so on.
Further, there are numerous professional RealtorŪ Salespeople, Associate Brokers and Brokers across Canada that belong to various local, Provincial and national real estate associations. The Canadian Real Estate Association (CREA) represents real estate board member RealtorŪs from across Canada.
They are real estate ''experts'' who can be called upon for mountains of information on the topics of home prices, trends and statistics as they relate to the art of buying a home.
But looking at a home purchase as being important is only a small part of the real reason why buying a home is such a monumental decision. The fact is, buying a home is a big decision because we go so deeply in debt to finance the house of our dreams!
Canadians have now borrowed several times their annual Gross National Product (the value of all goods and services produced in the country in a given year) and many more times the Gross National Income (the total wages and salaries paid to Canadians in a given year) in the form of mortgages.
The consequences of non-payment of this debt can create a great deal of personal and financial problems.
Therefore, the debt incurred to purchase a home and our level of comfort with incurring that amount of debt that is the really important factor in buying a home. Debt deserves our understanding and respect.
Older versus newer homes
When considering the purchase of a home, one of the questions that may arise is whether to look at new homes or older (resale) homes. There are many considerations that go into this decision, including each person's preference and opinion of both. However, beyond this is the matter of the various mortgage financing options available today.
One advantage to purchasing a new home is the New Home Warranty Program, which provides some measure of security. Secondly, building a new home will often keep any unanticipated drastic expenses to a minimum, making the purchase of the house and repayment of the mortgage more predictable.
On the other hand, a resale home is more likely to be located in an already established neighborhood, and offer many extras, such as existing landscaping, fences, extensive decorating, and even appliances in many cases. And if well maintained, or extensively renovated, can provide the same level of security. Plus it will probably be more conveniently located and provide easier access to schools and other local amenities, such as parks, hospitals, public transit and entertainment venues, just to mention a few.