Considerations Before Buying a Luxury Home in Calgary
- September 5, 2013
- By Cody Battershill
Are you thinking of purchasing a luxury home in Calgary? You’re not the only one!
Calgary’s red hot luxury home market has continued strong well into 2013, a trend that carried over from 2012 when the City of Calgary property assessments found a record number of million dollar homes in the city.
Also in August 2013, there were 64 million dollar plus homes sold in Calgary, more than doubling that in August 2012 and 68 percent higher than the record set in August 2007.
Today, there is currently a large variety of Calgary luxury homes for buyers to choose from - which is why it’s essential for them to know these facts before going ahead with their home purchase.
One of the most important things to think about when purchasing a luxury home in Calgary is its resale value. Ask as many questions as possible, such as…
- Is the home new construction, old construction or renovated?
- If it’s an old home, is it still functional for modern day use?
- Does its location offer all that a luxury community should?
- What about future developments such as highways or tall condo buildings in the area?
- Are there any other things to know about that could affect resale value?
It’s best to ask an experienced luxury real estate agent who knows the ABC’s of Calgary luxury homes and can provide insight into not only resale potential, but into the local real estate market also.
Long Term Affordability
There is definitely a reason why Calgary’s luxury home market is performing so well in 2013, one of them being our consistently strong economy with great employment opportunity, high average incomes and low taxes.
More people can afford to purchase luxury homes now than ever before, but it’s important they ask themselves if their current and future financial situation will be able to sustain such an expense.
Even the slightest possibility of future job cuts within the company or something similar can be a huge stop sign before making such a large purchase. If something like this does happen, its best to put things on hold until the time is right and there is a stronger sense of job solidarity for years to come.
Another thing to consider is property taxes. Calgary’s current property taxes for residential is 0.0063221 percent. On a million dollar home that will be $6,322.10 due at the end of June every year!
While a breathtaking view of the Rockies from a rural luxury home is always desirable, is it going to overrule convenience?
Living in a community such as Elbow Valley West for example gives residents great views and a serene rural lifestle but also puts them about 10 to 15 minutes away from the nearest amenities – it’s a trade off situation that luxury buyers have to think about very carefully when choosing a location that’s right for them.
On the other hand, living in an upscale inner city community could be great for the walkability, but cause a huge headache for some because of crazy traffic at most hours of the day.
Luxury buyers must know exactly what it is they want out of their location and need to be able to see themselves in the same position 5, even 10 years down the road.
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