Buying a new home puts a huge strain on your finances but knowing about new homeowner tax credits in 2015 will definitely lighten the load.  They won’t singlehandedly take the pressure off but qualifying for enough of them definitely makes a difference.

Different strokes for different folks

Knowing what kind of tax credits are out there is half the battle.  There’s several different kinds but we can break them up into three simple categories:  financial, family, and supplementary.

For your purposes, you’ll want to be focused on the financial but the rest shouldn’t be ignored.   If you qualify, take it.

Some of the tax credits you should check out include:

Financial:

• First Time Homebuyer’s Tax Credit – It helps you out by offering a $5000 non refundable tax credit as long as it’s the first home you’ve lived in and owned in the past four years and the residence is a qualifying home
• Tax Free Savings Account – It’s much easier to save if you have a secure, tax-free account that you don’t have to worry about paying.  Most Canadian banks now offer one.

Family:

• Home Care Services Tax Relief – GHST and HST exemptions to individuals with a wide range of disabilities.
• Medical Expense Tax Credit – Supporting a dependent relative by claiming anything over 3% of their net income.
• Children’s Arts Tax – Up to $500 of eligible expenses can be claimed for your child’s programs.

There are definitely a few more tax credits you can pile on but those are the main ones.  In terms of money, if you’re seeking more of a sizeable amount without going to a lender there is an alternate way.

Opening up the reserves

Did you know that you could use your RRSP to finance your home?  If your home qualifies, you’re allowed to withdraw up to $25,000 from your RRSP as long as you’re a first time homebuyer (like the credit above).  If you’re purchasing the property with your spouse and you both qualify as new homebuyers, you can actually combine both withdrawals for a total of $50,000.

There is a bit of a catch.  The thing with withdrawing from your RRSPs is that unless you intend to set up repayments over the next 15 years or less, the money you gain will count as income.  In a way it’s sort of like taking out a loan from your future RRSP fund.

Fixing the odds in your favour

Making the home buying process easier is about using every resource available.  Tax credits make it easy but there are other things you can do to make sure your money doesn’t go to waste.

Consider preapproved loans to bolster your chances of gaining confidence with the seller.  A home inspection can make sure your investment is in good shape and energy efficient, saving you money on bills.

Either way, simply being aware of new homeowner tax credits available in 2015 is enough to give you an edge.

Find the perfect home

Clearly, finding a home that meets all your needs, and doesn’t break your budget is also crucial.

Finding the right home for your wants and needs can be very challenging, At Previn Court Homes, we recognize the peace of mind that a newly built home provides, and our friendly staff takes the time to introduce you to all of the features of our quality residences.

With over a thousand homes built over the last few decades, and plans to build thousands more, we know how to create houses that families call home, and we invite you to explore our models.  Contact us to learn more about our homes, or register for priority updates and special offers, and let us help you find your dream home.

 OUR SPECTACULAR 3RD PHASE 40′ LOTS HAVE ARRIVED!!!!          STUNNING BRICK AND STONE HOMES  2310 sf  – 3050sf FROM $459,900   IMAGINE…A COMMUNITY WHERE SCHOOLS, SHOPPING, RESTAURANTS, TRAILS…ARE ALL WITHIN STEPS FROM YOUR HOME. 

Handling money is an artform.  Many people live paycheck to paycheck, while others save sporadically, but when you’re looking for a new home, a real commitment and discipline is required.  It involves a word many fear for good reason:  budgeting.

If you’re beginning the process of home buying, it doesn’t need to strike fear in your heart.  Quite the opposite:  all it requires is a little planning.  Whether you’re already looking at new homes or just thinking ahead, here are 5 quick tips that’ll help you create a budget.

1.  Pick a Day

A vague idea of when you’d like to move out won’t cut it.  You need to set a date. This will force you to start budgeting immediately.

Don’t make it unrealistic either.  Two years of savings is the most recommended amount of time and if you’re going to follow through with the following steps, you’re going to need the head start.

2.  Eliminate Your Debt

This may be easier said than done.  You’re going to eventually borrow money and if the people, companies or banks that are lending it to you see you’ve taken the steps to get rid of your debts, then it’ll do nothing but make things easier for you.

Do anything and everything to head into your budgeting with a clean slate.  If you have to, think of debt consolidation or talk to your bank.

3. Split the Payment

If you’re going in on this with someone else, you should consider a dry run.  Open up a savings account and every month pay half of a mock mortgage payment.  This will build up quickly between the two of you.

Open up the most attractive savings account you can.  Whether it be high interest, tax-free or anything else your bank or accountant recommends, try to get an edge.

4.  Cut the Fat

If you haven’t already, map out all your income and your expenses.  That means everything from bills to the muffin you buy on rough mornings.  This should leave you with your net income or your ‘take home pay.’

If you were honest with yourself, you should already see some extras that you can do away with.  This is a long-term commitment and that means sacrifice.  Let go of anything that isn’t necessary, and if you can’t let go of something (food for example), buy cheaper brands.

5.  Make an Emergency Fund

Owning a home is not like renting.  Homeowners quickly learn that repairs and maintenance bills are a real money sink.  While you save you should consider opening up a second savings account with a small regular deposit.

Ready to Start Looking for Your Dream Home?

Once you’ve got your budget plans laid out, you’ll have a better springboard for the house hunting process.  But where do you begin looking?  Now that you know what you can afford, you can start considering how you’ll be making an investment in property.

When it comes to the best return on your investment, buying a brand new home is going to ensure that you end up with an entity that will have increased value in the future.  At Previn Court Homes, we know that home buyers are looking for a residence that will make them feel both physically and financially comfortable.  Learn more about our beautiful affordable new homes to buy, or contact us to register for priority updates and special offers, and find the perfect home for your budget.

If you feel like you’ve gotten in over your head and the new homeowner anxiety has set in, don’t panic.

Buying a home is a pretty big deal and if you think about it:  a whole new stage of life. Knowing what steps to take makes it much easier to cut through the different layers muddying the waters and close on the deal without much of a headache.

Fine print

Even compared to financially dense endeavors, buying a new home has more than a few hurdles that are hard to see coming.  It’s tricky business unless you get help.

Never be afraid to consult with everyone you can.  Take a realtor for example.  If you check the Housing Market Index (HMI) and you’re open to different neighborhoods, you stand a much better chance than someone flying solo for getting a good deal and lower costs.

Clarifying market trends gives you an edge but so does making sure someone’s watching your back.  One of the most common mistakes new homebuyers make is accepting a verbal agreement.  Make sure you’ve got someone to look over all your documents and anything you sign.  Everything should be in writing and you should be able to understand it.

Money matters

The other big pitfall new buyers can’t seem to avoid is underestimating a sound financial strategy.  If you’ve ever wanted to analyze your finances thoroughly, now’s the time.  List everything going in and out of your bank account and even credit.

Speaking of credit, you shouldn’t fool yourself into not getting a loan.  A history of playing fast and loose with payments and financial obligations is going to hold you back.  Luckily, it isn’t set in stone.  Review your credit score for errors.  They’re surprisingly common and can be fixed before lenders have to take a look at your credit.

In terms of loans, it’s less about you and more about them.  If you’re a seller would you be more comfortable selling to someone who thinks they can get you the money or someone who’s guaranteed to have it with a pre-approved loan?

Thinking ahead

Your home is more than a residence, it’s an investment.  If you keep in mind that the resale value can be cashed in later then it’s important you take care of it and think of the whole experience as a carefully planned financial move.

Don’t skip out on the home inspection and follow as many tips as you can to make sure the home is in tip-top shape before you commit.  Opting for homes with things like a large yard or extra rooms isn’t a mistake if you keep in mind that your circumstances can change at any time.  Luckily, you can make sure that you’re sitting on something that’s worth a lot.

Buying a new home is only as colossal and daunting as you let it be.  If you gather information, plan and amass support, new homeowner anxiety isn’t something you’ll have to get used to.

Start here

Finding the right home for your wants and needs can be very challenging, At Previn Court Homes, we recognize the peace of mind that a newly built home provides, and our friendly staff takes the time to introduce you to all of the features of our quality residences.

With over a thousand homes built over the last few decades, and plans to build thousands more, we know how to create houses that families call home, and we invite you to explore our models.  Contact us to learn more about our homes, or register for priority updates and special offers, and let us help you find your dream home.

Buying a new home is one of the most expensive investments you’ll ever make.  It’ll pay off in freedom and increasing value over time, but getting the money together in the first place is a source of frustration for many. Borrowing money isn’t the only option, and by being resourceful and creative, you can save a significant amount of cash quickly to put towards your home.

Whether you’re interested in purchasing a new home as soon as possible, or it’s a consideration for the future, we’re going introduce you to some of the fastest ways to save your money.

Spend Less

This one may seem like a no-brainer but you’d be surprised how difficult it is to do.  The first thing you can do to start saving for your home is to spend less on what you’d typically buy.

This does not mean eating less and living beneath the poverty line.  What it means is to look for alternatives.  If you’re used to certain brands of foods, look for ones that are cheaper and put the difference between the two away as savings.

Sell More

Don’t think you’re a hoarder if you can’t stand to get rid of your stuff.  It’s hard for all of us to say goodbye to something we worked hard to pay for, but if you want to start saving money, you’re going to have to think about selling what you don’t need.

Luckily, this has gotten easier with the internet.  Put out ads on craigslist, kijiji and ebay and watch the money come in.  If you’re in a nice community, think about a garage sale. Every bit helps and you’d be surprised how much people are willing to pay for something you don’t need.

Secondary Revenue Streams

If you want to save faster, you’re going to have to double or even triple your sources of money.

This doesn’t mean working 80 hour weeks and sacrificing sleep.  If you have an extra room, consider renting it out.  Also consider your skills – can you do anything on the side for money?  Plenty of people write, design and repair things on a freelance basis and make money that way.

Set It Aside

No matter what you do, make sure to set the money aside as fast as you can.  Even if you don’t supplement your income somehow, make sure to put some of your paycheque in a savings account right away so you don’t accidentally spend it.

You’ve Saved Your Money.  Now Where Do You Look for a New Home?

Saving for a new home is only first of many steps to owning a home. Once you have some money in the bank and you’re ready to start looking, you’ll need to choose whether you want to move into an older home, or if a brand new home is your cup of tea.

When it comes to new home builds, Previn Court Homes is best in class.  With over 35 years of experience, we have built homes for over a thousand families, including detached, townhome, and unique attached single units, and we can help you find the perfect home for you. Contact us to let us know your desired number of bathrooms and bedrooms, as well as your budget, and we’ll send you priority updates and special offers on our beautiful new homes.

GET READY! OUR 3RD PHASE WILL BE COMING SHORTLY!  LARGER LOTS, LARGER HOMES. 40′ AND 50′ LOTS.  PRE REGISTER NOW FOR UPDATES.

IMAGINE…A TRULY UPSCALE COMMUNITY WHERE YOU CAN WALK OR BIKE WITH YOUR FAMILY TO SCHOOLS, TRAILS, PARKS, SHOPS, RESTAURANTS…

If you’ve ever been looking for a new place to live, then you’ve no doubt had this question cross your mind:  To rent or to own?  It’s a loaded question and the opinions you get will be pretty divided.

The only way to really know what to do is to look at the pros and cons objectively.  Let’s examine the advantages of both options, as well as the challenges you may face.

Round 1:  Freedom

The question you need to ask yourself is how much freedom you want. When you’re renting, you’re at the mercy of your landlord.  Depending on the location and type of dwelling, you may face restrictions.  However, if you wanted to live somewhere new, moving out isn’t a complicated process – it just means waiting until the rental agreement has expired.

Naturally, buying puts you at the opposite end of the spectrum.  It’s your property and you can generally do as you please.  You won’t have to worry about someone constantly watching over you and you can make the space as unique as you’d like.  Of course, this means that you’ll want to consider the value you are adding to the home when making any adjustments.

Round 2:  Cost

If you’re made out of money, you really don’t need to worry about renting or buying.  For most of us, however, it’s a legitimate concern.  Renting can seem attractive because of the simple nature of forking over rent, whereas buying a home will be a bigger strain on your wallet and the process is much more complicated.

When comparing buying and renting, a great tool to employ is the price-to-rent ratio. It weighs the cost of purchasing a home with the annual cost of renting one.

To figure this out simply take the sale price of your home and divide it by the annual cost of renting. The resulting number is your price-rent ratio. A P/R ratio above 20 usually means that owning that house will cost you more than renting it monthly.

Round 3:  Investment

While you may feel like you’re saving by renting, you aren’t making an investment.  This is where buying has an edge.  Purchasing a home isn’t going to make you rich overnight, but since you own the property, it’s yours to sell in the future.  Any additions you make can raise the value, and as the market and your area change with time, so to does the resale value of your home.

Renting doesn’t offer the same benefits and the best you can hope for is rent staying the same.  This is the ideal scenario as many people who rent can attest to steadily increasing rates.

In the end, it’s all about what you need.  Buying may seem more costly but it’s a decision that can give you more long term freedom and stability, while renting suits those looking for a quick (and potentially temporary) accommodation.

Interested in Buying the Right Home for Needs?

If you’ve decided that buying a home is the right choice for you, the next step is finding a home that’s the right fit for you.  Buying a home is one of the most important investments you’ll ever make in your life, which will impact how comfortable your family is both in the house and financially in the future.

At Previn Court Homes, we know this decision is an important one, and we strive to create beautiful homes that will provide long term value.  Since our inception over 40 years ago, we have constructed in excess of 1500 homes in Canada, and in the process made the dreams of 1500 families come true. Take a tour of our incredible models, or contact us today for more to let us know your needs in terms of bathrooms, bedrooms and budget.

WHAT ARE YOU WAITING FOR? MORTGAGE RATES ARE EXTREMELY LOW.  BUYING A HOME IS MORE AFFORDABLE THAN EVER. BANK OF MONTREAL HAS A 3 YEAR FIXED MORTGAGE AT 2.14%. NOT ONLY THAT, WHEN YOU BUY A NEW PREVIN COURT HOME, BANK OF MONTREAL WILL GUARANTEE YOUR RATE FOR 18 MONTHS. NOW THAT’S PEACE OF MIND, KNOWING THAT THE RATES WON’T GO UP FOR THAT LONG OF TIME PERIOD, PLUS IF THE RATES GO DOWN WITHIN THE 18 MONTHS YOU WILL RECEIVE THE LOWER RATE. BMO WILL ALSO OFFER AN EVEN BETTER RATE WITH A QUICK 90 DAY CLOSING. TAKE ADVANTAGE OF THIS SWEET DEAL. CONTACT OUR MORTGAGE SPECIALISTS FOR FUTHER DETAILS.                                                                     

MICHAEL WOLLENBERG: TOLL FREE 1-800-316-1432, CELL 705-345-0073, E-MAIL Michael.wollenber@bmo.com

DONNA WISEMAN: 705-326-3731 CELL 705-345-0073 E-MAIL donna.wiseman@bmo.com                         

Whether you’re searching high and low for new homes in Alliston or elsewhere, you’re no doubt wondering if it’ll save you any money compared to a used one.  It’s surprising just how much modern engineering can benefit your wallet and make those utility bills a lot less scary to look at.

Full of Hot Air

Living in a country with extreme seasons means we use a lot of energy to power our homes.  How much is used doesn’t depend on the weather as much as it depends on the home itself.  It’s important to know that whether you realize it or not, your home is leaking air.

Don’t panic; this isn’t as bad as it sounds!  You won’t feel it anywhere besides your bank account.  You see, because your home is cooled or heated (depending on the season), escaping air results in losing energy and heat.

Newer homes don’t really have this problem.  To illustrate the point, the Canadian Home Builder’s Association ran simulations and studied old homes.  If all the cracks and spaces in a typical mid-70s home were to be brought together, you’d have a hole 21 inches wide!

In homes made to the latest Ontario building code, that home would shrink by over two-thirds.  That means less money seeping out of your home.

Stepping on the Gas

Homes heated by natural gas can be costly due to a lot of the structural inefficiencies in older homes.  Homes didn’t become energy efficient on their own; homeowners fed up with pricey energy bills drove a lot of the changes.

It shows, too.  The CHBA’s analysis showed that the same home we talked about built in the mid-70s consumed 7948 m3.  In an identical house built to 2012 standards, gas consumption was about 1695 m3.  Based on average gas rates the change in gas consumption equals over $1300.00 saved a year!

Being Efficient with Your Wallet

Energy efficient homes aren’t just creating a stir with homeowners either.  With 17% of the energy in Canada being used in homes the government and lenders have taken notice.

The Canadian Mortgage and Housing Corporation is one such group, making it easy for homeowners to finance their home.  The CMHC’s mortgage loan insurance allows a minimum down payment of 5% on home purchases and it’s all tied in to how energy efficient your home is.

Additionally, if you’re using CMHC insured financing to purchase a new, energy efficient home, a 10% refund on the insurance premium and longer amortization are possibilities if the home meets the requirements.

Maintain Less

At the end of the day, new homes in Alliston or elsewhere can and will save you money, especially when it comes to utilities.  While arguments can be made for saving money by buying a used home, the cost of renovations, inspections and maintenance make going for something that’s built to the latest code and energy efficient the more logical choice.

If you’ve been feeling the winds of change and mulling over downsizing, it pays to know what to look for, whether that’s a new home in Alliston or beyond.  There are plenty of reasons to find a smaller space, from the kids moving on to getting away from costly bills, but it isn’t as easy as it sounds.  What’s the best way to go about it?

Doing It for the Right Reasons

Repackaging your life is no small task.  Before you do, you should take a good look at your situation and make an informed decision.

The first thing you should analyze is your expenses.  You most likely have room you don’t need.  This means paying more in utilities to keep the heat inside and the elements outside.  Downsizing to a new home means a much more energy efficient space.

If the move feels right, start looking at homes objectively.  Don’t let attachment cloud your vision and make you jump into a new place because it looks great at first glance.  Condos the size of a shoebox are creatively branded as “cozy” and “secure”.

Get familiar with all the details of your prospects and know what you’re looking to gain and you’re well on your way to ‘smart-sizing’ to a better home.

Comfortable Fit

So, you’ve narrowed down a list of places that look interesting.  What should you look for?

The easy answer is:  Whatever fits your lifestyle.  Picture what you want your day-to-day to look like in your new place.  Some things that stand out as pluses include:

• Condo or house?  If you need more than two rooms, look for a small house.
• Perimeter:  Do you intend to mow a massive lawn?  Hire a gardener?  Shovel a long driveway?
• Location:  How far are you willing to go for groceries?  Is there a doctor nearby?  Do you want to be isolated or be in the thick of it?

You’re giving up space so you might as well gain some convenience.  Don’t forget to treat yourself; reduced property taxes, maintenance costs and mortgage mean you can start thinking about all the things that were out of reach before.

Getting down to It

Downsizing takes a fair bit more planning than moving in to a great big space.  You’ll have to jettison some of the clutter weighing you down and really think about what you’ll want for the new place.  A great way of doing this is to take a home inventory and mark what should make the trip and what should stay behind.

Do this a few months before moving day and you’ll have pace of mind.  Paying a visit to the new space and laying it out the way you want it also mitigates the chaos of moving and can give a lot of confidence.