5 Biggest Challenges to Buying a Home in BC
Here are the 5 biggest challenges you may face when buying a home in British Columbia
The High Cost Challenge in BC
- One of the biggest challenges to buying a home in British Columbia is the high cost.
- Vancouver and the surrounding areas have some of the most expensive real estate in Canada.
- The average price of a home in Vancouver is around $1.5 million, which is significantly higher than the national average.
- Luckily, we all don’t have to live in Van and there are radical places to live all over this fine, albeit massively and criminally clear cut land.
The Qualification Challenge in BC
- A second but obvious challenge is qualifying for a mortgage.
- A good credit score is helpful but we can work on improving yours if it’s junk.
- A steady income is helpful but I qualify people all the time with strange and interesting income situations.
- Low debt helps get the application in line; again…we can work through these challenges. I have tricks!
If you’re self-employed, you may face additional challenges in qualifying for a mortgage – HEY! relax…50% + of Huber Mortgage clients are self-employed. Just because the average joe thinks getting a mortgage with self-employed income is impossible doesn’t mean it is. C’mon people… that is fake news at its best 🙂
The Gross and Criminal Property Transfer Tax Challenge in BC
- When you purchase a property in British Columbia, you’ll need to pay a property transfer tax unless you are a first time home buyer and your purchase price is less than $500,000.
- The property transfer tax is based on the value of the property and can be a significant expense. Our ever-doting governments put this chestnut in place in 1987 saying it was just a short term measure…kinda like the income tax that they said would go away after the World Wars…right…
- Yup…it’s still here.
So they will ding you for 1% on the first $200,000 of the property’s value, 2% on the portion between $200,000 and $2 million, and 3% on the portion above $2 million. Basically, it’s extortion.
The Limited Inventory Challenge in BC
- Another challenge is the limited inventory of available homes.
- In popular areas, homes can sell very quickly, and you may need to act fast if you find a property you like.
- Additionally, there may be a lot of competition from other buyers, which can drive up the price of the home.
- All the above is true…in a conventional sense. Markets change, housing stocks fluctuate, each community and provincial region is different, interest rates rise, real estate prices fall.
Let’s have a chat, find out what you need and where you want to be. Gather your information BEFORE you make a move.
The Closing Costs Challenge everywhere….
Finally, there are closing costs to consider when buying a home in British Columbia.
- These can include legal fees, home inspection fees, appraisal fees, and more.
- Closing costs can add up quickly and should be factored into your budget when considering buying a home.
- Assume 1.5% of your purchase price which will account for the property transfer tax as well
Conclusions
These 5 Big Challenges to buying a home in BC are not that scary if you connect with a mortgage professional like Huber Mortgage, have us refer you to a super real estate agent, get you the information you need, build a strategy and get you what you need!
Sincerely,
Michael
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE
