SEVEN STEPS TO A SECURE INVESTMENT

Shopping for a new home brings out all the emotions, especially for first time homebuyers. It's exciting. It's frightening. It's satisfying and often confusing.

Buying a new home is the biggest investment you will ever make. It's not surprising that for many it's not an uplifting experience. They're downright scared.   PMA Brethour Research completed a recent study that indicated that the average buyer will visit at least nine projects before choosing the home they want. They can take between eight and ten months to make up their minds. That's an ordeal.

But it doesn't have to be that way. You can be in control. It comes down to making a simple list. Here are the Seven Steps to a Secure Investment, particularly for the First Timer.

1. Eliminate the emotion through preparation. Getting prepared gives you knowledge - and gaining knowledge gives you confidence.
   
   With that confidence, you know the market is hot, but you also know that you don't have to rush into a deal. Being prepared means you won't make a bad decision. As the writer John Ruskin said, well over 100 years ago, "The bitterness of poor quality remains long after the best price is forgotten".   Take your time and do a little homework.
   
2. Set out your priorities. Make a list and put it down on paper: What is your primary reason for moving?   If you're a couple, each of you should make your own list. Put things in priority, from the most important to the least. Then you should compare your lists.
   
3. Now do a Motivation and Needs chart.   Do it in two columns.   In one column put the real reason you want to move, the Motivation   - it could be a change in family composition (marriage, divorce, children), or work (a transfer or change of career). It could be financial or lifestyle - write it down.
   
   Then in the other column put what you really Need.   Do you need more bedrooms, or less space? Maybe you need more bathrooms. Or maybe it's just new that you want. Write it down.
   
4. Now Dare to Compare. Prepare a spreadsheet.   If you have Excel or similar software, this is a great way to use it. There are over 700 new home communities in the GTA with over 20,000 house types. Now that you've set your priorities, sort out the ones you want. Start with location, the neighbourhood. Then add in the other factors: the type of house (single, detached, townhome or condo apartment), the size, the finishing specifications, the financing, the builder and warranty, and finally, the deal.
   
   Measure your priorities by using a point system. If one factor about a project fits your needs, give it a plus one (+l); if not, give it a minus one (-1). Add everything up and your ready for Step 5.
   
5. Zero in and check them out.   Get your selection down to the top two or three projects that really meet your needs. Then go knock on doors. If the community is already partially built, ask some of the residents who are already living there. Call the Ontario New Home Warranty Program, and ask about the builder. Call the Greater Toronto Home Builders' Association.
   
   If it's a new development, ask the builder for the names of five purchasers from previous projects, and call them up. Call city hall and talk to the building department.
   
6. Know your costs. Before you get down to making an offer on the home you want, make sure you have the money business all lined up. Go to your bank or financial institution and get pre-approved for a mortgage. That way you know exactly how much you can afford. What will the monthly payment be? Nothing else matters as much - not the five free appliances and not the interest rate. They're important, all right, but the most important factor of all is this: How much a month?
   
   Know all the costs - the closing costs, the bank charges and the lawyer's fees. Find out about the GST charges and the education levies. Ask about the cost of the paved driveway and the tree planting. Remember: What's in writing in the contract is what you get. If it's not in writing, it's not in the deal.
   
7. Take action! Now that you're prepared, you can enjoy the experience. This is an exciting time to be buying a home. We're in the midst of a surging market and there is an incredible selection of homes available that offer great value.
   

Don't be paralyzed by indecision. You can study things to death. You can get trapped by the sickness "If-itis".   That's when you say you'd do something if only . if only I could win the lottery, if only my parents had more money, or if only the Leafs were in the playoffs. The list of "If-itis" excuses is endless and will cause you to miss a glorious opportunity - the joy, the pride, the security of investment in home ownership.