Gregoire Posted March 31, 2011 Author Report Posted March 31, 2011 DON'T GIVE UP THE BOAT! The costs will start to add up and it will get further and further away (or smaller with fewer bells and whistles). I agree don't make any majoir changes yet. Get to know the place. 3 car garage on the Danforth! Good job! Sorry not a 3 car garage. It is a one car garage with 3 parking spots. As far as the boat goes, it is probably on the back burner unfortunately, but the mortgage shuold be manageable, so I plan on putting money aside from the sale of the condo and from the fact that my payments on the house will be lower now that I have someone to help with them. I know that I am taking a serious risk RE the potential for me to ever get a boat, but I'm hoping that my fiance will stick to her word on this one.
Gregoire Posted March 31, 2011 Author Report Posted March 31, 2011 Thanks for all the great advice guys. I really appreciate your input. Heading to do the home inspection today, and my real estate agent is paying for it as a gift. At least that is 400 bucks plus that I do not have to worry about. Just about the only advice thing I seem to be compramising on is giving up the boat. I'm pretty sure I can swing a fishing Kayak, which I'll be able to use in the Kawartha's and such. I'm hoping the fiscal restraint on my part and my guaranteed income increases will allow me to induldge in a few years....at least before we get a kid. From what I hear this is usually the deadline for when your disposable income disappears.
Fish4Eyes Posted March 31, 2011 Report Posted March 31, 2011 Please do report back as to how thoroughly the "home inspector" looked at things. If he's at the house for 45min, kick him in the butt on his way out and be glad you didn't have to pay for his services.
bigbuck Posted March 31, 2011 Report Posted March 31, 2011 Sit on top of the home inspector and ask tons of questions. Because he is there as 'a gift' from your agent, there is a fair chance that he will overlook things so the deal can happen. Things like Knob and tube wiring, asbestos, formaldehyde, mould and the like ARE BIG NO NO'S. Make sure you look closely at the windows, roof, plumbing, electrical, any spot where you can check for whatever insulation there is (not too much in those old houses, I lived at Pape and Mortimer as a kid). Make sure that whatever electrical work that can be seen would pass code. Take a good look at the garage too. Most of the points have been covered as to weekly payments (takes up to 4 years off amortization), RRSP Homebuyers Plan (you aren't using it and some of the info mentioned isn't completely accurate - you borrow up to $25k from your existing RRSP, not from the bank and it has to be paid back over 15 years with no tax break on the repayment that has to be on top of your regular contributions, that said, not always the best way to go), TFSA's (loving them for most people who have good work pensions) and RESPs for your future kids. Keep on on small reno jobs in the house, $2k a year is a pretty good number to work with, remember it's an average number, some years may be higher (bathroom reno's, kitchen, roof, windows, etc...). You have to keep up on it otherwise it will become a big number one day and the list will be very long and you will have difficulty selling the house when that time comes. If things have been kept up and the house looks decent, it's easier to get your money out. Good Luck!!!
torco Posted March 31, 2011 Report Posted March 31, 2011 If you are planning to do floors or painting right after you move in, if possible try and get them done before. We found it so much easier to have someone come in and refinish the hardwood floors on our main floor before we moved in. Also gave most rooms a fresh coat of paint as well. Depends on closing dates and what not but if the opportunity presents itself take advantage.
Gregoire Posted March 31, 2011 Author Report Posted March 31, 2011 Please do report back as to how thoroughly the "home inspector" looked at things. If he's at the house for 45min, kick him in the butt on his way out and be glad you didn't have to pay for his services. I've been told by my agent that the inspection will take at least 2 hours...in fact his direct quote was "have something to eat before because we might be there a while." I have worked with a few agents in the past, and trust my guy, not just because he is a good friend who I played football with, but also because he knows his stuff. I have heard some horror stories about agents and the way the treat clients, and I'm glad that is something I don't have to worry about. I have no doubt in my mind that if there were any problems with the house he would advise me to walk away from the deal.
Gregoire Posted March 31, 2011 Author Report Posted March 31, 2011 If you are planning to do floors or painting right after you move in, if possible try and get them done before. We found it so much easier to have someone come in and refinish the hardwood floors on our main floor before we moved in. Also gave most rooms a fresh coat of paint as well. Depends on closing dates and what not but if the opportunity presents itself take advantage. I'm going to try to push this with my finace, even it it means living at her sisters or mothers for a few weeks after closing. I think it is really good advice. Thanks
Raf Posted March 31, 2011 Report Posted March 31, 2011 (edited) kiss the boat dream goodbye. boat first is not only a bit of a joke, it's the truth. otherwise congrats!! Edited March 31, 2011 by Raf
Flappn Posted March 31, 2011 Report Posted March 31, 2011 Make sure the Price is right!! Here's my dad's perspective on home buying. A house is not an investment if you take into consideration property tax, maintenance blah blah blah over the time you own it. So you have to make sure up front your not over paying. His rule of thumb after reading a library of investment books and seeing this stated over and over is you should never pay more that 15 years of rent for a home. Meaning...find out what the rent would be if you where to rent and multiply it over 15 years. Easier way, take the rent amount of say $2000 per month and multiply it by 150 (there are 150 months in 15 years) = 300,000.00. If your paying more than the calculation your paying to much. This applies to any city or township in North America.
Gregoire Posted March 31, 2011 Author Report Posted March 31, 2011 Make sure the Price is right!! Here's my dad's perspective on home buying. A house is not an investment if you take into consideration property tax, maintenance blah blah blah over the time you own it. So you have to make sure up front your not over paying. His rule of thumb after reading a library of investment books and seeing this stated over and over is you should never pay more that 15 years of rent for a home. Meaning...find out what the rent would be if you where to rent and multiply it over 15 years. Easier way, take the rent amount of say $2000 per month and multiply it by 150 (there are 150 months in 15 years) = 300,000.00. If your paying more than the calculation your paying to much. This applies to any city or township in North America. Interesting view on home ownership. I am pretty sure that we are not overpaying, but the home inspection will be able to shed some light on that issue. Similar houses in the area were going for 60k+ more than we are paying. I'm guessing that the lack of staging in the house, and the fact that there had not been a lot of work done on it recently explains part of it. The way I see it the wiring, plumbing and roof are all new. These are huge expenses and more valuable than new flooring or updated appliances. We saved a lot of money which will allow us to finish the house the way we want it, without having to invest in major fixes on the property.
Gregoire Posted April 1, 2011 Author Report Posted April 1, 2011 I got the inspection done today. Everything checked out pretty well. There are a few small things that need to be done, but nothing major. The home inspector, Carl, was a nice dude, very personable and helpful. He did a great job. All I have to do now is pay the rest of the deposit and hope to maximize the price on my condo.
pics Posted April 1, 2011 Report Posted April 1, 2011 A good home inspector will give you a video of everything he reported on AND a report in a binder... Don't furnish it with the don't pay for a year furniture....those stores usually have poor quality offshore junk that breaks before you pay for it...If you're on a budget, save and pay cash. The credit cards should be empty for any emergencies the will come up(and they will).... In five years when you renew and the home has more equity, your bank will bend over backwards to keep you as a customer. This is how you get your boat because the payments on the house should go down enough to get one.....unless you had a line of credit or a visa etc that the banks want you to throw on the renewal...don't do it! Never roll car payments etc into a renewal...your 10 000 car loan becomes much bigger in the long run... If you aren't already one, become a handyman.....unless you have handy friends...this will save you the most $$$
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