First-time homebuyers are often surprised by all the additional costs associated with buying a home. In addition to the minimum deposit, there are fees in addition to the actual pre-purchase, in-purchase, and post-purchase fees. We talked to Michelle Komens, who left the city’s VFX industry 12 years ago for the Lower Mainland real estate industry, about these hidden costs.
Q. Are you working with a first-time homebuyer?
A: A: I will do it. A few years are one-third of my customers.Recently, many people from Ontario and LA have moved here.
Q: Do your Los Angeles clients come from contacts you made from TV and movie productions?
A: A: Yes, some as a result of referrals from some Sony people.
Q: Q: For those who earn high 6 digits, I don’t think the incidental costs are relevant.
A: A: Well, it all sums up. Property transfer tax is enormous. People who are not from BC don’t know about it. This is pretty big to add. (PPT is 1% of fair market value of less than $ 200,000, 2% of more than $ 200,000, fair market value of less than $ 2 million, and 3% of fair market value of more than $ 2 million.) This is probably people. The biggest surprise for me.
Q: Q: Why is there no more anger?
A: A: do not know. When I bought my first home in 1996 and the home was $ 250,000 at that time, the taxes didn’t seem to be exorbitant. It’s the same tax, but now that the numbers are much higher, it may be the attitude of “well, maintaining the same tax rate.” So what’s the problem? “But it’s a huge cash earner. If you own something and you want to put your partner in the title, but they’re going to be 50/50 owners of investment real estate, they Must pay real estate transfer tax on it. I had a series of clients where mother and daughter basically exchanged homes. They had to trade on paper and both taxed. I was paying.
Q: Q: Is there a way for the buyer to reduce the inspection fee?
A: A: If you are buying a condo, many of them have a depreciation report. These are basically a 30-year overview of what’s happening in the building. These are very helpful as what is happening in the building is your main expense, not what is happening in the physical unit. What many buyers do is to read and inspect everything in advance before they make an offer, and then they may not be able to get a place.
Q: Q: However, the first deposit is not always a surprise.
A: A: It can be difficult for people to come up with from time to time. I informed them that they needed immediate access to those funds. That’s what you definitely need to come to the table.
Q: Q: How about the statutory cost?
A: A: I often recommend going with a notary public rather than a lawyer. If closing is easy, the notary will take ownership of the land and transfer the money. My experience with them over the years has been wonderful.
Q: Q: Do buyers have to pay if the geological document is in a hurry?
A: A: This is a huge amount of cash earned by a hierarchy management company. The rush fee can be $ 300 and you will have to pay for the paperwork as well. But listed agents pay for it.
Q: Q: After that, after purchase, there are insurance and property tax.
A: A: Insurance can be a big surprise to people, especially when dealing with tiers. Part of your geological fee is paid for the building insurance. Most Strata require you to have your own liability insurance. If the formation deduction is high, it can be difficult to get it. That’s what you want to see — what is the deduction for geological insurance and how much does your own insurance cost?
My recommendation for buyers is to create a simple excel spreadsheet, plug in the numbers, and keep track of your monthly costs. The big numbers can be scary, but if you know your mortgage rates, monthly costs, geological fees, and insurance, you’re in a better position. If you’re in a situation of multiple offers that need to be raised by $ 10,000, you can look like “Well, that’s about $ 40 more a month.” You know what your maximum is, you have settled all of those costs.
Q: Q: Should first-time buyers consider a mortgage cancellation fee?
A: A: That’s what you should think about when you set up your loan. Will it be on hold for at least 5 years, go for a great, 5 year fixed rate. But if you have the potential to sell or add someone, it’s wise to think about what you’re doing. These cancellation fees can be very high.
Q: Q: What would you recommend if the buyer is thinking of remodeling?
A: A: We may also ask the contractor to come before making the offer. Second, buyers have a cost idea and they can add it to their mortgage. And some layers need a permit, and then you may need to get a costly building permit. These things can actually be summed up as well.
Metro Vancouver’s First Home Buyer Guide
10 Terms That First-time BC Home Buyers Should Know
Would you like to buy a condo?Beware of these danger signals in the minutes of the formation
Buy a Home: 5 Tips If You End Up in a Bidding War
How to Find Your First Realtor: Three Things to Look for
Consideration of financial assistance and incentives for first-time British Columbia homebuyers
Is it old, new, or up-to-date?Advantages and disadvantages of buying old and new condos
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Hidden Costs to Buy a Home: First-time Buyers Face Sticker Shock
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