by Fran Bourassa

Created on: February 10, 2006   Last Updated: July 01, 2011

Well, one resource I have used for looking for properties is www.realtor.com. Also, check with friends/family to find a good real estate agent.

As far as the steps in purchasing a home:

This step is optional, though recommended. I would suggest you first get preapproved for a mortgage. Make sure that you are comfortable with the payment. It will give you a starting point to begin your search. Another huge advantage of being pre-approved is it grants you additional bargaining power when it comes to putting in the offer on the home that you want to buy.

The next step would be deciding on the type of property you would like to buy. Keep in mind, however, that you should plan on living there a minimum of two years. The reason being, if you live there at least two years, you are not required to pay capital gains tax on owner occupied property if there is a "profit" when you sell it, unless you make a profit of several hundred thousand dollars.

Single Family Homes

Pros

• Generally Appreciates the fastest of all residential properties
• Generally Depreciates slower than other residential properties
• Usually the easiest and quickest type of property to sell
• Provides the most privacy
• Gives you the freedom to do as you see fit with the home (ie decorating, painting, re-modeling, etc.)

Cons

• You must pay all maintenence required
• You are required to do all the work as far as lawn care, snow removal, ect.

Townhouse/Condo

Pros

• Little to no maintenece work (ie lawn care) required
• Usually costs less than a single family home

Cons

• Usually Appreciates slower than all other residential properties
• Usually Depreciates faster than all other properties
• Less Privacy than a single family home
• Far more difficult to sell than a single family home
• Depending on the condo/townhouse, residents/owners may need to meet specified criteria to own/move in
• Usually an association fee required, potentially very expensive

Two Family Homes (ie Duplex)

Pros

• May gain more equity/income as a result of having a rental
• Fairly easy to sell
• Generally considered a good investment (as is most real estate)

Cons

• Potentially having the other side vacant, with no additional income to supplement the mortgage payment
• Maintenece nearly doubles (furnaces, water heaters, ect)
• Not as private

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