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Smart house hunting: how to obtain the most out of your investment

Posted: 9/09/2015

Housing (in most cases) is our largest expense every month, and the larger the family the pricier; therefore we would like to offer you some tips on how to make smart options when choosing your next home.


If you are renting, a good way to save money is by leasing at all inclusive properties, where you won’t have to worry about variable utility costs so you can better plan your monthly expenses. Some will have gyms and other facilities included in the rent, so add what these expenses would cost you separately and compare it to the all-inclusive rent.


Another way to save in Rent is by considering areas in development around your city. Unfortunately, the more services, public transit and business you have next door, the higher the rent will be. Walking a few blocks, can save you big bucks, and give you a short workout. Also, these areas generally have more green areas and parks for the entire family.


When you rent, do not forget to ask why the current tenants are moving out, how much the utility bills are, and search for the yearly hydro consumption on your Hydro provider’s website; check the availability of public transit, how much do the laundry machines charge per load, and any other question that will affect your finances.


If you are one of those nomads, who can’t wait for the next July 1st to move to the next best place, consider that signing a new lease every year will lead you to spend larger amounts of money in the long term, and face yearly moving expenses. Rents can generally increase up to 5% every year, so if you pay CAD650 now you will pay approximately CAD 670; but you can always negotiate with your landlord and bring that increase rate down. If you move, in addition to the moving expenses, you will be facing the same rent price for a smaller place, or a higher rate, or you will have to move to unwanted areas.


One last thing about renting is that studios, 2 ½ or 3 ½, tend to be more expensive (per person) than renting a 4 Â½, 5 ½ or bigger with a roommate. You can find a 4 ½ for the same price you would rent a 3 ½ with better infrastructure and more space. Get a roommate and divide costs, it will be worth it.


If you are in the group of investors and decided buy a place, congratulations! This is a smart move, because your investment will only go up in value, and you can always rent it and use the money to pay your mortgage back. However, before buying, it is essential to consider ways to save in the long run.


The first thing to consider is the local taxes. Do some research and find out how much are the taxes in the area, and if your neighbors across the street are paying a lower tax rate. You will be surprised of how the city is broken down in terms of property taxes, and please don’t forget to ask about the infamous Welcome Tax.


When buying a property, make sure to ask about the years of construction, any previous big repairs, damages to the property, reasons why the previous owners are selling, and every other question that will give you room to negotiate a lower price, and save you headaches and extra expenses in mayor future repairs.


In terms of infrastructure, it is better to buy/rent in a well-insulated building, with natural gas heating and gas for the stove, as this will save you a lot of money in Hydro bills. Good ventilation and natural sunlight are also essential, considering that you will need to have the lights on most of the year if your place doesn’t get enough natural light.


We hope that these tips will help you make better decisions and money investments. You work very hard for your money, therefore, you want to invest it and see it grow. See you in our next post.

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