With Canada’s house prices beginning to stabilize, first time home buyers are once again starting to think about entering the market. Although buying a house or condo for the first time can be an intimidating process, the last couple of years have been quite the wild ride in real estate. Knowing when is the right time to break into the housing market and buy a condo for the first time is a tricky thing, but it all comes down to a few key factors.
First-time buyer considerations when entering the real estate market
At AllinREALTY, we help first time buyers – and first time investors – find their perfect property. Our focus is to find clients the best units, in the best developments, in only premium locations. Among the best are in Burlington, Oakville and western Greater Toronto. From start to finish, we help clients get the best deals possible.
When it comes to buying a condo as a first-time buyer, there are many things to keep in mind. Buying a new property often isn’t as simple as choosing a unit and signing on the line. It can be tempting to try to time the market in order to get the largest financial return, however this isn’t always the best choice.
Cost compared to your current situation
Current low interest rates mean your monthly mortgage cost is likely to be a manageable one. When deciding whether now is the right time to get into the market, it’s wise to do some math to compare your current situation with your proposed one. Figuring out how much you spend on housing per month now compared to what you’d have to pay for a mortgage, HOA fees, maintenance, taxes and utilities can help determine whether now is a good time to commit to a mortgage.
The available inventory
For a period in 2021-2022 there were very few homes on the market, which forced asking prices higher than average. Taking a look at how many condos and homes are on the market can help a new buyer decide if jumping into the market now is a good choice. More listings to choose from means prices are likely to stabilize into more affordable territory, and buyers no longer need to make offers as soon as a property hits the market.
Your willingness to negotiate
More properties for buyers to choose from means that the power of negotiation will play a larger role than it did a year ago. Buyers can still expect to pay close to asking price, however the need to jump on a listing and put in an offer well over the asking price on the day it hits the market has passed.
Whether you’re able to take on risk
Committing to a mortgage for the next 20-25 years might be considered a risk, so it’s important to consider whether you’re able to take this on. Interest rates and your job situation may change, so it’s essential to know whether you can weather this uncertainty before you commit to a purchase.
Whether you’re interested in creating a rental income
Even if you aren’t feeling ready to move into a new condo yourself, you might be able to turn a new investment property into a rental income. Today’s market is set up well for investing, with low interest rates and a market full of people looking for quality rental units.
Have you found a condo you love
When it comes down to it, one of the biggest determining factors in deciding to get into the real estate market is whether you’ve found a property you love. Although there are more options on the market than there were even a year ago, there’s no reason to rush into a purchase if you don’t love the unit you’re looking at. If you’re not in a time crunch it’s better to keep looking until you find the perfect space for you.
Greater Toronto is a great area to invest in
Buying a property in the GTA is a great first step into the market. With a history of condo price appreciation and a growing population that is always full of people looking to buy and rent, owning a condo is a great long term investment opportunity. In the West GTA you’ll find Oakville and Burlington – often ranked among the top communities to live within all of Canada!
There’s no good way to time the market
When it comes to buying real estate, there’s no real way to ensure that it’s the exact right time to buy. First time buyers have a number of things to consider when looking for a unit to purchase, and trying to time the market isn’t going to help the decision-making process. At the end of the day, the right time to buy is when it makes sense to you.