Is it a good investment?

Ask any homeowner, a house is solid investment that is difficult to match. Why?

Capital Gains Are Tax Free -- Any capital gains that accrue and are realized on the sale of a principal residence are tax free -- your money, 100%!!

To match even a small appreciation of 6%, the return on a fixed-income investment such as a GIC would have to be as much as 12%.

Gain Leverage -- You do not need the full purchase price to own a home.

Selecting a home type

Don't be pressured into buying a home that is not right for you. There are a lot of choices out there and a lot of pressures to buy. Here are the Pros and Cons of the various options as well as a comparison of resale homes vs. new homes purchased directly from the builder.

Whether you live in the Greater Vancouver area or the outlying areas of BC, you have a wide variety of options.

Be sure to discuss your choice of homes with your realtor.

Condo Apartment | Semi-Detached
Condo/Freehold Townhouse | Re-Sale Home

[Condo Apartment]
• Pros:
• Lowest purchase price, lowest taxes
• Virtually maintenance free -- no snow shoveling or lawn mowing.
• Convenient for singles, childless couples and empty nesters.
• Given the high price of detached homes, condominiums are often a good choice in the Vancouver area
• Cons:
• Lower resale value, hardest to re-sell and can be difficult to finance with low down payment.
• Can have large maintenance fees that can substantially increase carrying costs.
• No private yard so you can't enjoy backyard activities such as barbecuing, gardening, etc.
• Share common walls with neighbors -- if they're noisy you're out of luck.
[Semi-Detached]
• Pros:
• Most privacy at least cost -- great for first-time buyer.
• You own the land -- the appreciating asset -- bricks and mortar depreciate.
• Good resale value and easy re-sell.
• Easy to finance at best rates.
• Usually has larger yard than townhouse, more backyard activities possible.
• Cons:
• Share a common wall with neighbors.
• Higher price per square foot of living space than a townhouse in a similar location.
[Condo/Freehold Townhouse]
• Pros:
• Lower purchase price and taxes than semi or detached and less maintenance.
• Better resale value than condo apartment.
• May have a backyard.
• Cons:
• Lower re-sale value than semi or detached and harder to re-sell.
• Don't own the land -- the most valuable asset (unless freehold Townhouse).
• Share common walls and close to neighbors.

Re-Sale Home vs. New from Builder

As a first-time buyer, another major decision you may have to make is whether to purchase a re-sale home or a new home directly from a builder. Both options have their advantages and disadvantages. Here's how they compare.

[Re-Sale Home]

• Pros:
• Lower prices because of some wear and tear (which varies greatly -- check closely!)
• You get the benefit of upgrades (finished basement, pool, etc.) at a depreciated price.
• Established neighborhood, current neighbors, etc., are known entities although they can
change.
• Cons:
• Home has been used by others.
• No warranty for repairs required by law, although it can be made a condition of purchase.
• If existing decor is not to your liking, it can be expensive and time consuming to change.