How Can Toronto's Young Afford a Home?" />
In the last 8 days our team has sold 3 of our MLS listings – all over asking and all with multiple offers. During the same time, four of our buyers made offers on homes. All sold over asking and all with multiple offers. In every situation, an anxious and possibly frustrated buyer walked away only to be starting again tomorrow.
And so goes the first quarter of 2017. The lack of listings and the increase in active home buyers has created a competitive situation. It is a Strong Seller’s market.
Thru all of these situations, the big question we hear is ‘how will young kids get into the market these days?’ If you are a parent, you have asked this question.
So here is how I respond.
Yes it is difficult. Think back to your very first home – or a friends first home. Our first place was a townhouse that Peter purchased before we met. It had a terrible cat smell (you know that smell) and was not in the ‘hottest’ part of town. He refinished and sealed the floors. Painted. Cleaned and cleaned. The place looked pretty amazing. There was a walk out basement and Peter took that as his ‘space’ and rented 2 of the 3 bedrooms upstairs to help pay the mortgage… There were no stainless steel appliances, new pot lights, electric toilets or ‘smart’ features.
Then we met and shortly after, sold the townhouse and bought a bungalow that needed a lot of work in an area that was nice yet not considered among the best in the city. (Some of our colleagues even questioned why we would purchase a home where we did) We didn’t renovate before moving in. We moved in and cleaned and painted and changed the windows. Peter even sold his MGB to pay for the new roof! (I think I was more upset about that than he was…) We kept a roommate for our first year until we were comfortable with the payments. We updated the kitchen using an older model my parents had taken out of their condo. We did what had to be done and we made a few modest updates as we were able….and we loved our home!
While all this was going on, our neighbourhood also improved. Other families were moving in and renovating and tending the gardens. Over time, the neighbourhood became a sought after community.
So first time buyers and young adults asking the question ‘how will I get into the real estate market?’ My best advice is to get creative. Look in places others may not be. Consider using leverage to help make your payments (friends who can afford to pay rent). Take off the ‘princess’ hat. Be prepared to live without stainless steel appliances and pot lights for a little while. Remember, your first home isn’t your forever home. It’s your ‘for now’ investment!
For more information on buying, investing and selling in and around the Toronto Area call Ora Ross @ The Mulholland Ross Group 416.230.8500 firstname.lastname@example.org