Since our oldest daughter started university six years ago and the other two shortly after, we have spent a lot of money on rent.
Not too long ago my brother and I were talking about the pros and cons of renting versus making house payments when our offspring are going to school. This is a question that many may be considering as rural families pursue education in a larger centre.
I looked at the Central Mortgage and Housing Corp. website at www.cmhc-schl.gc.ca and found a home-buying consumer guide and workbook. The most important point is to work out exactly what your needs are before you start home hunting – a home, an investment, a revenue generator or all three.
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When buying a home, you have to juggle three important factors – the home’s location, style and cost. For example, your goal may be to buy a single family detached home in an urban neighbourhood for $100,000. But you may have to settle for two out of three. An urban semi-detached home may be available for your price, or you may need to look in the suburbs for the price and style you want in lieu of location.
Of prime importance to me is location. Choice of location depends primarily on where you work, whether you want to commute and family lifestyle. Do you want to live near recreation facilities such as a golf course or skating rink? How close are schools? Is public transportation available?
Downtown living is close to entertainment but houses in the suburbs often have larger lots and larger square footage for the same price.
Drive around the neighbourhood you are considering during the day and in the evening. Travel the route to and from your work or school. Contact the local municipal office regarding planning and zoning bylaws. Is a high-rise office tower or a new highway going in next to your home? Zoning bylaws may also affect your own plans, such as conducting a business from your home.
Some real estate agents suggest if you’re considering the future resale value, it’s wiser to buy a modest home in the best neighbourhood you can afford, rather than the most expensive home in a modest neighbourhood.
The next question to ask is do you buy a new home or a resale home?
- A new home: You may be able to upgrade or choose certain items such as siding, finish materials, flooring, cabinets, plumbing and electrical fixtures. The latest building code, electrical and energy-efficiency standards will apply. A builder warranty is usually available.
However, amenities like schools or shopping may not be complete if the house is in a new development. There may be construction noise and traffic. There may be little to no landscaping or trees. The seven percent GST applies to new housing. However, there is a rebate, to a maximum of 2.5 percent, on homes that cost less than $450,000.
- Resale home: It will probably be in an established neighbourhood. Landscaping is usually done and fencing installed. It may have upgrades such as a built-in swimming pool or finished basement. There is no GST unless the house has been renovated substantially.
The disadvantages are that maintenance costs will likely be higher than for a new house. You may require a professional home inspector to check for structural or other problems, such as a leaky basement or faulty roof. You may need to redecorate or even renovate.
Economist in hall of fame
A fellow home economist in our province, Lillian McConnell, has recently been nominated to the Saskatchewan Agriculture Hall of Fame.
When the name Lillian McConnell is mentioned, the name “Penny Powers” comes to mind. McConnell was the first Penny Powers, a fictional person created by Sask Power in 1956 when rural electrification was coming into being.
As Penny Powers she travelled in a van, visiting town after town. The front of the van was a self-contained kitchen and the back a mini-theatre for presentations.
While agricultural staff explained to farmers about equipment they could use now that they had power, McConnell informed homemakers about use and care of home appliances. Many rural people may not have met her personally, but Penny Powers was a familiar name in nearly every home.
As Saskatchewan changed, her role with Sask Power Corp. also changed to involve research, development and evaluation of programs, production of information, design of kitchen and lighting plans, all related to the appropriate use of gas and electricity.
Following retirement in 1983, McConnell operated a part-time consulting service in energy use from her own home. During summer months radio listeners may have heard her broadcasting advice from her Regina home on canning and general food preservation, and answering listener’s questions. It is a task she loved, for her rural roots are strong.
