This is a continuation of our previous article containing tips for hiring an agent and narrowing down home features [appropriate hyperlink]. In this article, we will discuss narrowing down home location and determining whether fixed or variable mortgage is the best option for you. If you are a first time home buyer, here are a few helpful suggestions.
Narrow Down Home Location
Once you have got a list of features written down, the number of prospect homes you were previously looking into will be reduced. However, there might still be four of five properties that cater to all your needs. To narrow down your choices further, you can start writing down your ideal location.
- 1. Choose between different suburbs, or downtown: First determine whether you wish to live in the city or in the suburbs. If you are planning to have children in the future, or already have young kids, we recommend choosing a suburb over downtown.
- 2. Interview Locals: When choosing between suburbs you must look at the crime rates, proximity to your workplace, community centers, and schools. Don’t be shy about interviewing the locals, the people that already live there are your best source to get an idea of what life is like in that suburb.
- 3. Time to do some costing: If your house is not at walking distance from your work, and it usually isn’t, you will be making a daily commute back and forth from work. Your children will also be commuting back and forth from school. While determining the fuel costs, also consider the amount of time you will spending during your daily travels. You will have to live with these costs for quite some time, so ask yourself whether the costs are affordable.
- 4. Watch out for proximity to certain potentially negative influences: Airports, highways, railroad tracks, large apartment buildings, and commercial projects can greatly influence the real estate’s equity and can affect your daily life. We recommend you avoid such structures unless they can be beneficial to you. For example, if you need proximity to a highway ort a shopping mall and do not mind all the noise.
- 5. Look into important issues: Before you decide to buy, look into the general demographics present in the neighborhood. Are the residents accepting of your lifestyle choices? Is the neighborhood diverse? We know that these questions should not exist in the 21st century but unfortunately they do. You can get a sense of it while interviewing the locals.
Fixed vs. Variable Mortgage
Mortgage rates throughout 2012 have been low in Canada, and despite warnings by some skeptics, the scenario looks extremely positive for 2013. Choose a fixed mortgage is a strongly recommended option for households with a fixed and reliable income. Choosing a fixed mortgage provides you with peace of mind, and allows you to plan ahead financially.