Real Estate
10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the City
March 3, 2021
It’s a trend that started in recent years and was strengthened by the pandemic: more and more people are exchanging the dream of owning prime real estate in the city and instead are buying further afield, in the suburbs, the countryside or in smaller towns. After all, when you’re working from home anyway, why not opt for more space at a more affordable price? There’s also the appeal of going back to the land, growing your own food and maybe even raising a cow or a pony or some chickens. However, buying in the country is not as straightforward as it seems. Different rules apply for rural property. So, here are 10 things first-time homebuyers should consider before buying property outside the city.
Real Estate
10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the City
March 3, 2021
It’s a trend that started in recent years and was strengthened by the pandemic: more and more people are exchanging the dream of owning prime real estate in the city and instead are buying further afield, in the suburbs, the countryside or in smaller towns. After all, when you’re working from home anyway, why not opt for more space at a more affordable price? There’s also the appeal of going back to the land, growing your own food and maybe even raising a cow or a pony or some chickens. However, buying in the country is not as straightforward as it seems. Different rules apply for rural property. So, here are 10 things first-time homebuyers should consider before buying property outside the city.
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Zoning Bylaws
1/10Zoning Bylaws
1/10Photo Credit: Getty Images
Zoning bylaws cover how you may use the land. For example, they describe how many buildings you may put up, where you may construct these buildings and what you may use the property for. If the property is zones country residential, there may be restrictions on whether or not you may sell the veggies you’re growing, for instance. Zoning can also affect how you’ll be able to finance your purchase, since some lenders may avoid financing properties that are zoned agricultural or country residential. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/20-real-estate-terms-every-aspiring-homeowner-should-know-1896572/" rel="noopener" target="_blank">20 Real Estate Terms Every Aspiring Homeowner Should Know</a>Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityZoning Bylaws
PHOTO 1 of 10READ LESS -Zoning bylaws cover how you may use the land. For example, they describe how many buildings you may put up, where you may construct these buildings and what you may use the property for. If the property is zones country residential, there may be restrictions on whether or not you may sell the veggies you’re growing, for instance. Zoning can also affect how you’ll be able to finance your purchase, since some lenders may avoid financing properties that are zoned agricultural or country residential. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/20-real-estate-terms-every-aspiring-homeowner-should-know-1896572/" rel="noopener" target="_blank">20 Real Estate Terms Every Aspiring Homeowner Should Know</a>Photo Credit: Getty Images
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How to Finance the Purchase
2/10How to Finance the Purchase
2/10Photo Credit: UnsplashSource: unsplash.com
One of the most important <a href="https://www.hgtv.ca/real-estate/photos/how-to-buy-a-home-step-by-step-guide-first-time-homebuyers-1929902/" rel="noopener" target="_blank">steps in how to buy a home</a> is figuring out how you'll pay for it. For the first-time home buyer, Canada offers several programs that can help you, such as the Canada Mortgage and Housing Corporation’s First-Time Home Buyer Incentive or the federal government’s Home Buyer’s Plan. For the first time home buyer in Ontario, the rules may differ slightly from those in other provinces and territories, so it’s best to find out what the rules are in your area.Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityHow to Finance the Purchase
PHOTO 2 of 10READ LESS -One of the most important <a href="https://www.hgtv.ca/real-estate/photos/how-to-buy-a-home-step-by-step-guide-first-time-homebuyers-1929902/" rel="noopener" target="_blank">steps in how to buy a home</a> is figuring out how you'll pay for it. For the first-time home buyer, Canada offers several programs that can help you, such as the Canada Mortgage and Housing Corporation’s First-Time Home Buyer Incentive or the federal government’s Home Buyer’s Plan. For the first time home buyer in Ontario, the rules may differ slightly from those in other provinces and territories, so it’s best to find out what the rules are in your area.Photo Credit: UnsplashSource: unsplash.com
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The Down Payment
3/10The Down Payment
3/10Photo Credit: Getty Images
To get a mortgage, you need to be able to make a down payment first. Programs like the Canada Mortgage and Housing Corporation’s First-Time Home Buyer Incentive require a down payment of 5% of the lending value but are generally only for residential properties on no more than 10 acres. If the property is larger than that, your mortgage lender may require a bigger down payment. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/how-much-down-payment-buy-home-canadian-cities-1933810/" rel="noopener" target="_blank">Do You Have Enough of a Down Payment to Buy a Home in These 15 Canadian Cities?</a>Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityThe Down Payment
PHOTO 3 of 10READ LESS -To get a mortgage, you need to be able to make a down payment first. Programs like the Canada Mortgage and Housing Corporation’s First-Time Home Buyer Incentive require a down payment of 5% of the lending value but are generally only for residential properties on no more than 10 acres. If the property is larger than that, your mortgage lender may require a bigger down payment. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/how-much-down-payment-buy-home-canadian-cities-1933810/" rel="noopener" target="_blank">Do You Have Enough of a Down Payment to Buy a Home in These 15 Canadian Cities?</a>Photo Credit: Getty Images
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Renovations
4/10Renovations
4/10Photo Credit: Getty Images
Moving out of the city doesn’t have to mean giving up your creature comforts to go live in a drafty farmhouse instead. With some clever renovations, you can turn that farmhouse into the home of your dreams. For first-time buyers, it may be tempting to buy a cheap home described by the realtor as “a fixer-upper” or “in need of some TLC” but you need to consider the cost of renovations, which can be much higher in rural areas due to the cost of transporting the materials. <br><br> Related: <a href="https://www.hgtv.ca/renovations/photos/tax-benefits-rebates-grants-renovating-in-canada-1931581/" rel="noopener" target="_blank">The Best Tax Benefits, Rebates and Grants You Can Get for Renovating in Canada, by Province</a>Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityRenovations
PHOTO 4 of 10READ LESS -Moving out of the city doesn’t have to mean giving up your creature comforts to go live in a drafty farmhouse instead. With some clever renovations, you can turn that farmhouse into the home of your dreams. For first-time buyers, it may be tempting to buy a cheap home described by the realtor as “a fixer-upper” or “in need of some TLC” but you need to consider the cost of renovations, which can be much higher in rural areas due to the cost of transporting the materials. <br><br> Related: <a href="https://www.hgtv.ca/renovations/photos/tax-benefits-rebates-grants-renovating-in-canada-1931581/" rel="noopener" target="_blank">The Best Tax Benefits, Rebates and Grants You Can Get for Renovating in Canada, by Province</a>Photo Credit: Getty Images
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Water
5/10Water
5/10Photo Credit: Getty Images
Maybe you want to take your inspiration from <a href="https://www.hgtv.ca/shows/sarah-off-the-grid/photos/sarah-brings-a-small-space-to-life-with-an-earthy-palette-and-textural-touches-1906494/" rel="noopener" target="_blank">Sarah Richardson’s off-the-grid family home</a>. Even if you want to stay on-grid, it’s worth remembering that rural homes more often than not have off-the-grid water supply systems. Your mortgage lender will require a recent water potability certificate, which means you first need an inspection of your water source. If that source is contaminated, you may have to have a new well drilled, which can cost you several thousand dollars.Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityWater
PHOTO 5 of 10READ LESS -Maybe you want to take your inspiration from <a href="https://www.hgtv.ca/shows/sarah-off-the-grid/photos/sarah-brings-a-small-space-to-life-with-an-earthy-palette-and-textural-touches-1906494/" rel="noopener" target="_blank">Sarah Richardson’s off-the-grid family home</a>. Even if you want to stay on-grid, it’s worth remembering that rural homes more often than not have off-the-grid water supply systems. Your mortgage lender will require a recent water potability certificate, which means you first need an inspection of your water source. If that source is contaminated, you may have to have a new well drilled, which can cost you several thousand dollars.Photo Credit: Getty Images
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Wastewater
6/10Wastewater
6/10Photo Credit: Getty Images
Whether it’s a farmhouse or a cottage, there’s a good chance that wastewater goes into a septic tank. After all, you don’t want to contaminate that lovely lake or stream that makes the property so appealing, do you? Your mortgage lender will most probably ask you to present a septic certificate, which you can only get after an inspection of the septic system. This can cost more than it does in the city. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/things-to-know-before-buying-a-cottage-1918538/" rel="noopener" target="_blank">10 Things You Should Know Before Buying Your First Cottage, According to Scott McGillivray</a>Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityWastewater
PHOTO 6 of 10READ LESS -Whether it’s a farmhouse or a cottage, there’s a good chance that wastewater goes into a septic tank. After all, you don’t want to contaminate that lovely lake or stream that makes the property so appealing, do you? Your mortgage lender will most probably ask you to present a septic certificate, which you can only get after an inspection of the septic system. This can cost more than it does in the city. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/things-to-know-before-buying-a-cottage-1918538/" rel="noopener" target="_blank">10 Things You Should Know Before Buying Your First Cottage, According to Scott McGillivray</a>Photo Credit: Getty Images
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Other Utilities
7/10Other Utilities
7/10Photo Credit: Getty Images
If you’re going to be working from home, you’ll need reliable electricity, telephone lines and internet. This can be harder to find in rural areas and when the lines are down, they may also take longer to repair. Moreover, utilities tend to be more expensive in the countryside so you’ll need to find <a href="https://www.hgtv.ca/cleaning-and-organization/photos/20-clever-ways-to-save-money-on-your-hydro-bill-1053120/" rel="noopener" target="_blank">clever ways to save on your hydro bill</a>.Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityOther Utilities
PHOTO 7 of 10READ LESS -If you’re going to be working from home, you’ll need reliable electricity, telephone lines and internet. This can be harder to find in rural areas and when the lines are down, they may also take longer to repair. Moreover, utilities tend to be more expensive in the countryside so you’ll need to find <a href="https://www.hgtv.ca/cleaning-and-organization/photos/20-clever-ways-to-save-money-on-your-hydro-bill-1053120/" rel="noopener" target="_blank">clever ways to save on your hydro bill</a>.Photo Credit: Getty Images
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Appraisal
8/10Appraisal
8/10Photo Credit: Getty Images
Another piece of paperwork your mortgage lender will want to see is an appraisal of the property, which basically says how much the land is worth. Getting an appraisal done generally costs more than in the city because the appraiser has to travel so much further. The final appraisal may also be lower than you’d expect because it’s harder to sell rural properties. So, you may need to have to cover the difference between the appraised value and the selling price. <br><br> Related: <a href="https://www.hgtv.ca/renovations/photos/20-renovations-that-wont-add-value-to-your-home-1894750/" rel="noopener" target="_blank">25 Home Renovations That Will Not Increase the Value of Your Home</a>Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityAppraisal
PHOTO 8 of 10READ LESS -Another piece of paperwork your mortgage lender will want to see is an appraisal of the property, which basically says how much the land is worth. Getting an appraisal done generally costs more than in the city because the appraiser has to travel so much further. The final appraisal may also be lower than you’d expect because it’s harder to sell rural properties. So, you may need to have to cover the difference between the appraised value and the selling price. <br><br> Related: <a href="https://www.hgtv.ca/renovations/photos/20-renovations-that-wont-add-value-to-your-home-1894750/" rel="noopener" target="_blank">25 Home Renovations That Will Not Increase the Value of Your Home</a>Photo Credit: Getty Images
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Access
9/10Access
9/10Photo Credit: Getty Images
It may sound very romantic to have a property so remote that you can only access it by boat or an ATV. That will quickly get old in winter, though. Speaking of winter: just how much driveway are you prepared to shovel? One of the things to know before you buy a piece of land is that in rural areas, neighbours often share a private access road and are responsible for its upkeep. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/need-to-know-before-buy-land-1932047/#" rel="noopener" target="_blank">10 Things You Need to Know Before You Buy a Piece of Land</a>Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityAccess
PHOTO 9 of 10READ LESS -It may sound very romantic to have a property so remote that you can only access it by boat or an ATV. That will quickly get old in winter, though. Speaking of winter: just how much driveway are you prepared to shovel? One of the things to know before you buy a piece of land is that in rural areas, neighbours often share a private access road and are responsible for its upkeep. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/need-to-know-before-buy-land-1932047/#" rel="noopener" target="_blank">10 Things You Need to Know Before You Buy a Piece of Land</a>Photo Credit: Getty Images
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Emergencies
10/10Emergencies
10/10Photo Credit: Getty Images
Home insurance tends to be more expensive in rural areas. One of the main reasons for this is the increased risk of wildfires. It’s also worth remembering that you’ll be further away from emergency services, so you’ll need a good <a href="https://www.hgtv.ca/lifestyle/photos/do-you-have-a-home-emergency-plan-1937712/" rel="noopener" target="_blank">home emergency plan</a> that not only deals with how to evacuate your home but also with how to put out fires and apply first aid for more serious medical emergencies.Real Estate10 Things First-Time Homebuyers Should Consider Before Buying Property Outside the CityEmergencies
PHOTO 10 of 10READ LESS -Home insurance tends to be more expensive in rural areas. One of the main reasons for this is the increased risk of wildfires. It’s also worth remembering that you’ll be further away from emergency services, so you’ll need a good <a href="https://www.hgtv.ca/lifestyle/photos/do-you-have-a-home-emergency-plan-1937712/" rel="noopener" target="_blank">home emergency plan</a> that not only deals with how to evacuate your home but also with how to put out fires and apply first aid for more serious medical emergencies.Photo Credit: Getty Images
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