Supermum1

A question to those who bought in the UK before, and now here as I previously owned a flat in Scotland which I sold prior to the recession on moving to Canada.

Qu: Is it easier, and is itcheaper to do it here than in the UK?

I'd opt for a 2 bed home as that would be big enough for us, when the time comes. Preferably a brick one not wooden one too. Once I have my 10% down payment. I have two endowment policies due to mature soon, though they both demutualised, at least I will have a down payment again.

Or is it just better to rent with utilities included, since when we are old they'll take our homes away to pay for our senior housing anyway

Steve_

Well it's cheaper in that properties are cheaper. I can't say in any other way it's cheaper, realtors still charge the same kind of money. Plus in Ontario on a new home there would be HST which is way higher than stamp duty in the UK. (You get a significant reduction in the HST amount, there is the GST rebate and Ontario gives up their portion of the HST unless it's mega bucks, but it's still more than stamp duty). But on the other hand on a resale property there is no GST or HST.

Also brick houses don't make as much sense in Canada because of the winters, forget about how a UK house looks and works, radiators would freeze and brick has a very low R-value. Brick is mainly used in Canada as a cosmetic feature, i.e. "wood-framed brick-faced" is how they're usually described.

Siouxie

There is a good wiki article on housing - pro's and con's for owning and the costs involved.

The process here is similar to Scotland in that once you have made the written offer it is binding.

http://britishexpats.com/wiki/Category:Housing-Canada

I would say that it is better to own a property than rent one, provided you can afford it. I would also suggest getting a 3 bedroom if you can as it's always better to have extra room (sleepovers, family or friends staying, hobby room or study) and it is also advantageous when selling again.

You might find these helpful:

http://www.cmhc-schl.gc.ca/en/hoficl...C-Newcomer.pdf

http://www.cmhc-schl.gc.ca/odpub/pdf/60946.pdf

Supermum1

Thank you. I still feel brick is better, more solid and in Ontario you get both, I like the brick ones best, less noise from outside too.

I like how Scotland does it, hand shake and it's binding, so that's good too if done the same way here, don't like the sound of that hst etc so resale property suits me then. Think I'll stick close to the 100K bracket which where I live is doable at least, and I'm okay giving up my bedroom if visitors, if it comes with a basement, even better.

Siouxie

Depending on how much you are putting as a down payment (percentage wise) you will need to factor in the CMHC mortgage insurance (you can have it added to the mortgage), though if you are putting 20% down there is none to pay. There is also land transfer tax to pay plus legal fees but there is no HST on property unless it's a new build.

My nephew lives in St. C and it's certainly a reasonably priced area for housing. Look at property up to 25% over what your maximum is - for example, the house I bought was first advertised for $249k, then reduced to $229k and I paid $195k for it (they wouldn't accept $185k, lol).

Mikeypm

Siouxie I'm Dissapointed I would have thought with your skills and dedication you could of got it for 180k

JonboyE

It is not quite the same: the buyer makes an offer which the seller can accept, reject, or counter. It is not unusual to have a bit of back and forward over a day or two to agree a price.

The buyer's offer usually contains "subjects." Eg I offer $100,000 subject to the house receiving a satisfactory building inspection report and subject to me securing a mortgage at a reasonable rate.

If your offer has no subjects the sale becomes binding as soon as the seller accepts it. If the offer has subjects the deal is binding on the seller as soon as they accept it, but does not become binding for you until you remove the subjects. You usually have a few days to have the house inspected and to arrange your mortgage. If you do not remove your subjects within the specified time the deal collapses.

I am a great believer in home ownership. I like the security. I like to be able to stand on my own land. But, I am reminded of two friends who lived together very happily for six years. They decided to get married and split up for good two months later. Commitment does not work for everybody. If you rent you need the landlord's permission to do many things with the property and you are always in danger of receiving notice to quit. However, for many people this is a worthwhile trade off.

Either way you pay rent: to a landlord for the use of a property or to a bank for the use of their money. In addition to the mortgage payment you have to factor in property taxes, insurance and maintenance. Ask locally for expected maintenance costs. Because of the climate and materials used you cannot neglect maintenance as you can in the UK.

It will probably be more expensive to own than to rent at first. However, over the long-term it is better to own. Rent is lost money that continues forever. A mortgage is for a limited term (even if it doesn't feel like it at first). The biggest advantage of ownership is that once the mortgage is paid off you get a fair amount of the money you have paid out back in the capital value of the house and land.

Be sure you are doing the right thing for you. There is property transfer tax when you buy and realtor's fees when you sell. Changing your mind is an expensive business.

Buy a house for a home, not as an investment. That said, if you choose your location wisely, there is a pretty good chance that the value of the land will appreciate over time. It may not go up in value in the short-term, it may go down, but if you enjoy living there so what?

HGerchikov

How JonboyE describes is exactly as it works except the terminology is different. In Ontario they are 'Conditions' not 'Subjects'.

Supermum1

Thank you. Now I'm getting the juicy tips I needed to hear. How do I save this thread for future reference? I like the sound of the 25% down payment for sure. Might have to save a bit longer, we shall see when the endowments mature I guess, then I'd have to transfer from the UK account to the Canada one to purchase The next dilemma.

Supermum1

Agreed, much of that I knew already, capital gain is far better than lost money down the drain. I'd only ever get a house for me to live in this time round, not an investment. And for sure I'd choose carefully.
I did start off with that view too when I purchased in Scotland when worked in the RAF before, and then it became an investment after moving back to England on a posting up until I sold it after moving to Canada and prior to the recession (thank goodness), it became more of a headache in the end. Niagara falls is even nicer to live I think, it's got a more relaxed spacious feel than St Catherines, but for some reason they flood more than we do on heavy rain falls, and it would be a bit of a commute to work, which isn't going to be fun when on call working overnight. I do visit nursing work, so home to home nursing.