What type of home should you buy?

What type of home should you buy? If you’re a first-time buyer, moving to a larger home or downsizing to a smaller one, the answer to this question is a very individual one. It really depends on your situation – everything from the amount of your down payment to where you work to whether you have kids to other personal circumstances.

For your own enjoyment while you live in your home as well as for future resale potential, proximity to transportation, shopping, schools and other amenities is among the key determinants that affect the your property’s appeal, and ultimately its value. After all, those are the qualities that potential buyers look for when searching for a home. The more of them your house has when you go to sell, the more it will be attractive to a greater number of people.

Experts suggest you take a long-term view when buying a home, but it’s also important to not look too far down the road.

Let’s be honest, your first home may not be your dream home, and your needs are bound to change throughout the various stages of homeownership.

So, while the answer to what type of home you should buy is specific to circumstances, there are also some common guidelines to follow.

How much can you afford?
Experts agree it is never a good idea to make yourself house-poor, and it is a common mistake, particularly of first-time buyers, to buy more home than you can afford. Meeting with a mortgage broker or banker will help determine your financial picture, assessing everything from your credit rating to how much you have saved for a down payment. And with tougher mortgage rules recently taking effect, buyers should “stress-test” their plans. See how well you could cope with higher mortgage payments brought on by rising interest rates.

How much will it really cost?
Another common mistake is not being prepared for all the closing costs involved. Lawyer fees, land transfer taxes, utilities, insurance, and home inspection and appraisal fees and insurance – they all add up. You should factor these costs into your overall home-shopping budget.

Where do you want to live?
This question is becoming more important for a number of reasons, though influenced mostly by where you work, your desired commute and whether your transportation options include mass transit or only driving. Indeed, especially with gas prices on the rise, proximity to transit is something more and more people are looking for in their new home location.

What type of home do you want?
Once you have determined your options for cost and location, you can assess what types of homes are available in your price range and desired neighbourhood: Single-family detached, semi-detached or townhome?

Some many questions, so many choices. The good news is, home builders today are in sync with customer preferences for location and amenities, and with market realities with regard to pricing and needs for energy efficiency, so your options for new-home product have never been better.