Your first home may not be your forever home

Your first home may not be your forever homeHome ownership is a goal for most of us, and millennials appear to be the most optimistic group. According to an RBC poll, two in five millennials said they intend to buy a home in the next two years. But the cost of home ownership and things like regulatory changes can make saving for a downpayment more difficult and, for many, put the dream of home ownership out of reach.

Sometimes, however, first-time buyers may not be looking at all their options. A little flexibility and compromise can help make ownership more accessible when considering the following:

Begin with a starter home. Few people spend 50 years in one home these days. Think about your lifestyle for the next five to 10 years and make a decision based on that. Your dream home in your dream neighbourhood may still be yours, just a bit later in your life.

Get a renter. Could you afford the home you want if you rented out part of it? Many people create a basement apartment or rent out a second bedroom as a way to offset their mortgage payments.

Consider co-ownership. Buying a property with family or friends is a great way to get your foot in the door. Discuss options with your mortgage specialist and be sure to establish a solid contractual agreement that will help avoid or mediate any future disagreements when selling the property, renegotiating terms or buying each other out.

Be realistic. Don’t expect perfection. Every home has some issues and you may have to compromise or decide what you can and can’t live with. What is a permanent feature versus something that’s an easy aesthetic fix? Set your priorities, but be realistic and flexible.

Be patient. Style your home slowly and resist the temptation to furnish it from top to bottom the day after you move in. Get creative with chic but less expensive, gently used furniture or pieces that may not last a lifetime but will save you money today.

Find more information online at rbc.com/home.

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Questions every homeowner should ask about their property

Questions every homeowner should ask about their propertyDid you know that homeowners are responsible for the maintenance and replacement of service lines on their property when they fail? The costs associated with digging up, repairing or replacing service lines can run into thousands of dollars. More than that, any damages to trees, shrubs and driveways due to repairs must be paid out-of-pocket by homeowners.

Alarmingly, many homeowners are not aware that service line failures — including water, sewer, septic, electrical and telecommunications lines — are not covered by most home insurance policies.

“Every homeowner needs to be knowledgeable on what they’re covered for and what they’re not,” advises Isabelle Bientz, insurance expert from Aviva. “Most service lines run underground, making it easy to forget the importance of getting them checked for repairs. A lot of homeowners are also not aware that they own the outdoor service lines from their property line to their house, and behind their house to a well, septic tank or out-building.”

Before the unexpected break, leak, tear, rupture or collapse occurs, homeowners need to ask themselves these questions about their service lines:

1. How old are your pipes? The average lifespan of water pipes is 25 years, but the average age of pipes in many areas in Canada is over 50 years old, and several municipalities have water systems of comparable age. Knowing the age of your own water pipes will help you determine whether they’re due for a repair or replacement.

2. What are your pipes made of? Depending on what your pipes are made of, the life expectancy will differ. It’s important that you check the material of your sewer and water pipes in order to make an educated assessment, or consult an expert to see when they’re due for a repair or in need of a replacement.

3. Do you have mature trees near your property? If you own a home with mature trees on or near your property, the roots could cause serious damage to your service lines. Clay pipes, which are most commonly used to build water and sewer lines in older homes, can be easily penetrated and damaged by tree roots. If you suspect a tree root problem, contact a professional to investigate before the situation worsens.

Not sure if you need coverage for your service lines? Find more information from your insurance broker or online at www.avivacanada.com.

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