With the high price of real estate, in may seem impossible to get into the housing market. After all, it’s not just the price of the dwelling. It’s saving for a down payment, lawyer fees, home inspector fees, more than likely CMHC fees, etc. etc. But there are a few ways to help you get into the game….and well on your way to owning your home.
Consider purchasing a property with the potential to rent. If you are purchasing a property with a legal apartment that is already rented, more than likely the bank will consider that income in your mortgage application. With the increase in people unable or unwilling to buy at this present time, you may have your choice of tenants. If you are purchasing a property with pre-existing tenants, make sure you find out details about these renters from the previous owner. Are they trustworthy? Do they pay their rent in a timely fashion? Asking these questions upfront can save a lot of angst down the road.
Another excellent resource to help enable first time home buyers to buy a house is the Home Buyers Plan. This program was introduced by the Government of Canada to allow use of existing money in RRSP accounts INTEREST FREE towards building or buying a house. There’s just one catch- the money taken out of the RRSP for this purpose must be repaid back into an RRSP according to the Governments schedule. If it is not, the money is taxed exactly how it would be if the RRSP was cashed for another purpose.
Buy within your means. This more than likely requires you to make some concessions. What you want: a 3 bedroom, 2 car garage home on a large lot in the city of Toronto. What you can realistically afford at the present time: a townhouse an hour or more outside of the GTA. Make the compromise, and buy the townhouse and commute. This will get your foot in the door, and well on your way to owning your own home. Even though it’s not ideal, it’s a start, and most people start out in “starter” homes. Every month that passes by that you’re living in your townhouse, look on the (very) bright side- a lot of those mega dollars you’re paying every month are going toward your mortgage principal……creating equity for you. Then once some time has passed, and you’re in a better position to afford what you really want in a house, you can move to it.
So get a move on and jump into the real estate market! It’s most often an excellent investment, and with these tips it’s hopefully within reach. Don’t forget to move with the GTA’s #1 moving company, Augusta Movers, when you do purchase that property!