I remember my parents being really delighted and I remember also feeling a slight sad because for the first time in my life I would no longer be sharing a bedroom with my sister. I precisely remember her feeling pretty happy about that!
The next time I thought about real estate, it was when I was about 14 years old. My father had developed his business in the pizza shop and had wisely decided to take profits and invest in Oakville real estate for rent. I was philosophically committed to focusing on low- and middle-income housing, ensuring that they were rented at a reasonable price and kept in good condition. He thought it was a moral obligation, he said, “everyone needs a place to live and it is important not to enjoy it.” When I was young, my father wanted to be a monk, and these tendencies, similar to those of the monks, often presented themselves in the way he envisioned business. He included me in many aspects of real estate investment and renovation, and I learned a lot from an early age, including:
1) If you borrow money to buy something, you should expect it to increase in value. A mortgage or a student loan is investments that, at least if done wisely, can cover more than the cost of the interest you pay. Compare that with a car that depreciates considerably when you take it out of the field. When considering an investment in real estate, think about why this particular property would increase (or decrease) in value and consider it in your decision.
2) Be sure to consider the cost of maintenance or renovation when buying a house or property. That is one of the things I learned the hard way. Although my childhood home was full of promises and optimism at the time of purchase, it turned out to be a foggy price, because, by the time things broke down, there was no room for improvement. The money or the time to fix it.
3) Creativity is the key when buying real estate with a limited budget. My father bought his first properties “without money” and sent me to a class at 18 to teach me how to do the same. The world is very different now and some financial crises have shown to people that it is essential to ensure that buyers are qualified; it is an essential aspect of the crisis not related to housing. However, there are still ways to buy a property with a small down payment or no down payment, but it does not reduce the need to be sure you can make the mortgage payments.
4) Owning a house means needing an emergency buffer. Property taxes can increase. Insurance premiums may increase. Natural disasters can cause damage. Watch the movie “The Money Pit” before buying your house. A humorous but informative message about the fact that a house can devour a house. Be prepared!
5) One afternoon, my father sat down with me to show me how much it is possible to save on the total cost of the property if he pays a little more each month what is asked in return for the payment of the capital. It opened my eyes to the operation of depreciation and also helped me to be wary of “agreements” on mortgages that could cost a fortune to the buyer. If you’re taking out a variable rate mortgage, make sure you know the potential disadvantage of a rate hike and be honest with yourself to find out if you can afford it. The last time I took out a mortgage, I had to fight with the lender because I wanted a traditional 30-year fixed rate mortgage. I tried to convince myself to buy an apartment three times more expensive than the one I received (seriously, THREE times!), And to do so by contracting only one interest mortgage. This may seem attractive on the surface, but the details include adjustable rates in a few years and a lump sum payment, none of which is economically prudent. Shortly after making this purchase, the real estate bubble exploded and many homeowners lost their homes due to this mortgage.
6) Really think about why you want to rent or buy. There are excellent reasons (for example, “Why pay someone else when you can afford to pay for it yourself?”, Which was another favorite saying of my father). Home ownership can also be an excellent way to save for retirement: accumulated wealth becomes an asset that you can access when you stop working, whether through sales and staff reductions or by use of a reverse mortgage. These are all very rational reasons to buy a house. There are many emotional reasons why people want to own their own home. They are also valid, but they are better weighed against the stress that could be generated if the time is not right and if it affects their finances.
Understanding the process of buying a house (there are many websites on the subject and many real estate agents who conduct training seminars to find potential buyers) is essential before taking the plunge. For most people, a home is the most important investment of their entire life; therefore, it is worth taking the time to verify if this is the right time for you. If the property you fall in love with is sold to another buyer, do not worry, do not compromise your finances and do not put yourself in a difficult situation. There are many “fish in the sea,” go ahead and find this house that was meant to be for you.