|
The Decision
to Purchase
Purchasing a home can be both exciting
and frightening!! It is probably one of
the biggest financial investments you’ll
ever make. You’ll not only have to
live with you decision, but also live
in it, so you don’t want to make
costly mistakes.
What are my choices?
What can I afford to spend?
Time spent answering these questions
in advance may save you from frustration
and disappointment during your search.
What Choices do you have?
To meet the many kinds of needs that
people have, a number of different housing
styles and types of ownership have developed
over the years. Your individual requirements
and your income level will govern the
housing type which is most suitable for
you at the present time.
Types of Housing Structures
Single family, detached house
- A detached house is one which has no
common walls with any other residential
structure, resting on its own land with
front, rear and side yards. It may be
any size from a small, one-storey bungalow
to a huge mansion.
Duplex - A duplex is two separate
dwellings which are attached either side-by-side
or on unit above the other.
Townhouse - In British Columbia
the term "townhouse" is usually
used to describe one of a group of dwellings
(most often two-storey) joined together
by common walls, each with it’s own
entrance from the outside.
Apartment - An apartment is one
of several dwellings (most often single
dwellings built above the other) joined
together by common walls, each having
its entrance from a common hall. The overall
building containing the apartments may
be three to 33 or more storeys.
Mobile or Manufactured Home -
A Manufactured home is a factory-built
residential structure designed to be moved
from one place to another, although wheels
are not necessary. It is often placed
on a rented space (called a "pad")
in a manufactured home park.
Freehold - A freehold interest
(also known as fee simple) is the more
precise term for what we ordinarily refer
to as "ownership" of a property.
The owner of the freehold interest has
full use and control of the land and the
buildings on it, subject to any rights
of the Crown, local land-use bylaws and
any other restrictions in place at the
time of purchase.
Leasehold - In some cases you
might purchase the right to use a residential
property for a long, but limited, period
of time. The owner of this right of use
has a type of ownership called leasehold
interest. This type of ownership is used
most often for townhouses or apartments
built on city-owned land. It is also used
occasionally for single detached houses
on farmland, on Indian reserves, and for
apartments where the owner of the freehold
interest of an entire apartment block
sells leasehold interests in individual
apartment units to other "owners".
Leasehold interests are frequently set
for periods of 99 years, but regardless
of the length of the original term, you
will only be able to purchase the remaining
portion. Of course, the shorter the remaining
portion, the less you, or the person who
eventually purchases from you, will be
willing to pay for the leasehold interest.
Condominium - It is a common error
to believe that this term describes a
particular structural style of housing.
You should be aware that it is actually
a type of housing ownership.
Cooperative - In the cooperative
form of ownership, each owner owns a share
in a company or cooperative venture which,
in turn, owns a property containing a
number of housing units. Each shareholder
is assigned one particular unit in which
to reside.
|
