So you want to buy a new home?
Here are some important considerations when you enter the housing market in Winnipeg:
1) You will face competitive offers. No matter how much you say you won’t bid large or write unconditional offers, many still do. The supply of homes in the first time home buyer range up to $250,000 are in demand so be prepared. No matter how much you prepare, when you are out there looking and have missed out on offers on other homes all logic and rationale will go out the window unless you are very patient. Having the right realtor is something that you have control over so take the time in the selection. Here are some great questions you can ask your realtor.
2) Land Transfer Tax, the hidden surprise. Imagine buying your first home for $250,000 only to find out when you meet with the lawyer a week before your possesion date that you need $2720. for land transfer tax. This money goes directly to the Province of Manitoba to transfer the title from one name(s) to another. If this seems like a bit of a tax grab, you are right!
3) While we are on taxes, in 2012 the Province of Manitoba introduced provincial sales tax on any mortgage default insurance premium. On a $250,000 home with a 5% down payment you can expect to pay $452.38 in sales tax. So first time buyers, the province is your pocket for $3172.38 and you haven’t even moved in yet. We continue to be one of the most heavily taxed provinces when it comes to purchasing a home, how are you feeling now?
4) Property Disclosure Statements. If you don’t feel that you need to know more about the property, here is an example of a home owner in Winnipeg who had a major surprise. This happened on Christie Road in Winnipeg so it can happen anywhere. Here is an example of a homeowner in Saskatoon who was able to legally go after losses relating to a basement that had water. The Property Disclosure Statements were brought in to protect would be homeowners on any potential known problems with a home.
In the end, get professional well qualified advice to help make your first home buying experience the best possible.