There’s no denying that 2020 has been a huge time of change for people all over the world. Even though our daily routine and social circles may look a little different, plenty of families and savvy investors in the Vancouver region have made the leap and are ready to purchase a brand new property. British Columbia is home to some of the most stunning locales in North America, and settling down in a new home is one of the most exciting experiences you can share with your loved ones. Before you sign on the dotted line and move forward with a property, it’s important to make sure you have all details prepared. Partnering with a skilled legal team makes it easy to navigate the entire process with minimal complications, while also avoiding the many mishaps that can lead to delays and headaches. At Paperclip Law, we’re proud to help property buyers and sellers tackle real estate transactions throughout Vancouver and Squamish, BC. If you’re planning on buying property in the new year, below are a few tips to keep in mind.
Do Your Research
As with any major life decision, it’s important to do your research before committing to a specific home. Be aware that there are multiple factors that you should consider, including:
Market conditions: Market conditions play a large role in determining the price, closing rate, and several other aspects of purchasing a home. The market is influenced by a wide variety of factors and can fluctuate accordingly, so it’s best to stay regularly apprised.
Subject Conditions: Terms and conditions should never be rushed into. While you may need to move quickly to keep up with the market, failing to properly consider all conditions can lead to major issues down the line. With a trusted legal team on your side, you can trust that you are aware of all major elements and move forward confidently.
Building Inspection: Regardless of how new a property is, having a qualified inspector take a look around is vital. Failure to do so can leave you stuck with costly issues in the future, with no way to recoup your costs.
Taking the Next Step
If you’ve graduated to the next stage of home buying and are ready to go from growing to buying, keep the following in mind:
The First Time Home Buyer’s Program
In order to qualify for the First Time Home Buyer’s Program, which can help reduce some of your financial strain upfront, you need to meet the following criteria:
- Canadian citizen or permanent resident living in BC for 12 consecutive months immediately before completion date, or have filed 2 income tax returns as a BC resident during the 6 years prior to the completion date.
- Have never owned a principal residence anywhere else in the world at any time.
- Have not previously received a first time home buyer’s exemption or refund.
- Purchase price must be less than $500k for a full exception or $525K for a partial exception.
- Property must be solely for use as your principal residence.
- Land must be less than 0.5 hectares (1.24 acres)
Buying a home is one of the biggest investments you’ll ever make, and having insurance will protect you in the event of the unthinkable. When purchasing, you need to arrange property insurance prior to the Completion Date, with coverage beginning on the Completion Date.
Beware of “Hidden” Numbers
While there shouldn’t typically be any hidden costs associated with buying a home if you’ve done your legwork, there are several fees you do need to be prepared for. These include:
- Property transfer tax
- GST (where applicable)
- Prorated property tax and strata fees
- Title insurance or survey certificates (if required)
- Insurance binder
- Legal fees
Let’s Get Settled!
If you’re ready to sign on the dotted line for your dream home, Paperclip Law is here to help. Contact us today to learn more!