Being a home owner is a big deal in the Filipino community. In Calgary, houses and condominiums are being built throughout the city. Across the province and in the country, “real estate” is a major driver of economic growth. It is also one of the biggest investments (or expense) in the majority of households today.
To get a sense of whether or not to buy a house, FCM connected with one of Calgary’s well-known realtors, Alex Briones.
FCM: Why should people buy a house instead of renting one?
AB: My brother Rico and I own a few rental properties. We bought them about 4 years ago. We still have mortgages on these two rentals but we are not paying for it, our Tenants do. 20 years from now, these houses will be paid by the tenant. When you are renting, you are paying someone’s mortgage. No matter what you and your family needs a place to live. You might as well pay for your own mortgage.
There are two rewards when you own a home. One, you have freedom to do what you want in your own home. You can paint it, renovate it, or hang any photos you’d like. You don’t have to worry about your landlord.
Second, you build equity when you are paying for your own home. Every time you make a payment, some of that goes to the principal of your mortgage.
Real Estate is one of the safest investment there is. The value of your home will not be the same several years from now. You will have equity in it.
FCM: What are the factors to consider when buying a home?
AB: When you’re buying your first home, first thing is your budget. When you’re renting, it’s less expensive that having a home. You need to consider property tax, utilities, insurance, repairs and other costs. You have to be ready for this. Once you established your budget, start looking for a house. Location is very important. Most buyers get too excited with the nice things inside the house. But the truth is the value of the interior upgrades will be gone 10 years from now. The real value is on the location and the floor plan of the house.
I always tell clients that buying a home is a long term goal. It’s 25 years mortgage so you have to think long term. Think about the transit, school, distance from your work and the resale value. All these you have to factor in.
If you are an existing home owner and you’re looking to move or upgrade, I always ask what’s the main reason for them to move. And is it worth doing? I have many clients that I’ve advised not to move because they don’t have a good reason to move. If the reason to move is because their kids need to go to university or you need the bigger home for growing family then those reasons are good. If they just want a new or bigger house or because their friends bought a new house, then I advise against it because they can get into budget trouble.
So really it goes down to budget. What are you comfortable paying or what can you afford. Don’t worry about the upgrades or the interior. Look at the location and the layout of the house. That’s where the value will be in the years to come.
FCM: What should people look for in a Realtor® before they decide to work with one?
AB: First thing, buying a home is one of the largest purchase a person can make. You want to make sure you have an expert professional advice on this matter. It’s like going out to see a judge without a Lawyer beside you if you’re purchasing a house without a Realtor® representing you. There’s so many things a Realtor® can do for you such as reviewing the contract, negotiation, giving advice on the price, and going through the small important details. Realtors® have access to the most recent information on housing and communities. Have someone to represent you.
Finding the right agent can be as hard as finding a right house. You have to be careful who you work with. I always recommend that you interview three real estate agents before you choose one. Find somebody that do this work as their full-time job. That is a very good indication that this professional is serious about their career. I don’t recommend people with an undivided attention. Find someone you are comfortable with, someone you can ask questions anytime you want. The reality is you’ll be together with your agent most of the time. Make sure you are comfortable with this person. The last thing, ask your friends and family for recommendation. I personally don’t give any referral fee, (just a small gift or token of appreciation) the main reason is I want people to refer me only because of their trust that I will provide a great value and take good care of their friends and family, not after the referral money.
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