Posted on: 25-06-09 13:50:36
Dear CDs,
For a First TIme Buyer (Home), assuming the house will be purchased at $550,000 through mortgage. I am aware there will be some closing cost like transfer fees, lawyer fees, etc etc. I have couple of queries
1. I wish to analyse the total cost of ownership. So if someone can share the cost break-down and details
2. Likewise what is the cost of borrowing (mortgage) for 15 yr term at 3.65% 5yr fixed rate.
3. Lastly which of the above costs are negotiable, I read about kick back from RE agent at what stage should this be fixed/negotiate, assuming no offer to purchase any house has yet been made.
If you need any more basic info about the transaction please feel free to ask or you can assume some cost and do highlight so that readers are enlightened and made aware...... Life is a learning process / journey the best one can do is to share-learn-grow !
kind regards,
Quote:You have to include yearly maintenance, property taxes, hydro, gas, appliances lease/purchase, and other expenses.
Originally posted by pardesi_canadamein
1. I wish to analyse the total cost of ownership. So if someone can share the cost break-down and details
If you wanna get really detailed, you should also add in other increased/decreased expenses like shorter/longer commute to work, opportunity cost of your "investment", etc.
You can get as accurate or as high level as you want.
Quote:Use a standard amortization schedule and total up all the interest payments.
2. Likewise what is the cost of borrowing (mortgage) for 15 yr term at 3.65% 5yr fixed rate.
Quote:I assume you have already negotiated the best possible mortgage rate?
3. Lastly which of the above costs are negotiable, I read about kick back from RE agent at what stage should this be fixed/negotiate, assuming no offer to purchase any house has yet been made.
And of course the best possible puchase price?
Purchase price is the single biggest factor - a few thousand $$ less in purchase price can have a huge impact over the 15 years of mortgage.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Thanks PatrikM for your response it appears you are very knowledgeable in this field.....I may need to PM you is it fine?
Assume there is a short list or choice among few homes then what are big ticket items one must pay attention to like
1. Windows - if double layer windows then it will impact heating expense
2. Heating -
3. Any other
These are significant since the properties are 30-50 yr old.
Cheers,
Quote:
Originally posted by pratickm
Quote:You have to include yearly maintenance, property taxes, hydro, gas, appliances lease/purchase, and other expenses.
Originally posted by pardesi_canadamein
1. I wish to analyse the total cost of ownership. So if someone can share the cost break-down and details
If you wanna get really detailed, you should also add in other increased/decreased expenses like shorter/longer commute to work, opportunity cost of your "investment", etc.
You can get as accurate or as high level as you want.
Quote:Use a standard amortization schedule and total up all the interest payments.
2. Likewise what is the cost of borrowing (mortgage) for 15 yr term at 3.65% 5yr fixed rate.
Quote:I assume you have already negotiated the best possible mortgage rate?
3. Lastly which of the above costs are negotiable, I read about kick back from RE agent at what stage should this be fixed/negotiate, assuming no offer to purchase any house has yet been made.
And of course the best possible puchase price?
Purchase price is the single biggest factor - a few thousand $$ less in purchase price can have a huge impact over the 15 years of mortgage.
Quote:Oh, if the homes are that old, then there will be many other things to check, some example are -
Originally posted by pardesi_canadamein
1. Windows - if double layer windows then it will impact heating expense
2. Heating -
3. Any other
These are significant since the properties are 30-50 yr old.
- Roofing
- Basement (drainage, moisture, moulding)
- quality and efficiency of furnace and air conditioning
- type and quality of water pipes (older homes sometimes have issues with lead or other heavy metals in the water)
- check for asbestos (again, older homes used to have this)
I would suggest an in-depth home inspection at the very least.
Followed by water testing, duct cleaning and getting rid of carpet if it's still there.
The home inspector can guide you further based on his observations
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
