The real estate market can be difficult especially in hot markets like Vancouver, Kelowna and Toronto real estate market which can be challenging for millennials. The prices and demands are sky high that 32% of the non-homeowners surveyed by the CIBC don’t think they’ll ever be able to buy a property in Canada.
This is the sad and frustrating predicament that a lot of young professionals today are in. However, it’s not entirely impossible to own a property in Toronto. The sprawling growth of the metropolis should spark some hope in young people’s hearts. This opens up more chance to be a homeowner in the GTA, Okanagan or Lower Mainland you just need to know how to effectively dive into the market.
So how exactly should you navigate one of the hottest markets in the globe? Here are some of the actual things millennial homeowners have done to afford their homes in Toronto, Vancouver and Kelowna:
Most millennials who are already looking into buying real estate are the ones who are also starting to grow their families. They want a family home that they can call their own.
Unfortunately, single detached homes are out of the question. Sellers know that they’re worth a lot so they come with hefty price tags. There’s also not a lot available, so you need to have a huge budget just to afford one. In many cases, you also need to expand your search scope to actually find one that’s remotely within your budget.
Because of this, condominiums prove to be some of the best picks for a lot of millennials. They’re often located right within the downtown area so you don’t have to go through the hassle of commuting anymore.
They usually come with great amenities, too. Most of the time, this makes up for not having a yard, home gym, or a media room.
Their smaller size also makes them more affordable for a lot of homebuyers. It’s just that it’s small. Your space will be limited so if you intend to have a family sometime soon, you might need to learn to make your space work for you. If that’s okay with you, though, this setup can get your foot in the Toronto real estate market.
Not a fan of vertical living? Then you might want to consider commuting. Some neighboring towns and cities still have relatively affordable prices for single detached homes. You just need to factor in the convenience of your commute and your travel time if it’s worth the additional space.
Save Up and Build Your Credit Score
This can be the trickiest part of dipping your toes in the real estate market of this city. Not every young adult has the best credit score and repairing a damaged one can be a major undertaking. Saving up is another challenge since there’s just so much to enjoy if you live in the big city.
Most experts recommend sacrificing the small things you buy daily that add up to a lot in the long run. Make your coffee and toast at home if you must. Get store brand items. These small adjustments can help you find a few extra dollars here and there effectively.
A lot of millennials take second jobs or clock in longer hours at work to save up for their first homes. This will drastically affect your lifestyle but if you really want to afford a home in any other hot real estate market, this is one of the best ways to do it.
With the sky-high prices in the area, a few extra bucks from hustling might be a better choice than turning to the bank of Mom and Dad. Not that you shouldn’t explore that option, too, but if you want to fully leave the nest, this might be your best bet.
Honestly speaking, the Vancouver, Kelowna or Toronto real estate market can be inhospitable towards millennials but it’s not impossible to get into it. Conquering it might even be more rewarding, as it is one if the toughest to crack. If you think you’re up for it, give these tips a chance and you might just get lucky.
Contributed by: Greg Clarke professional realtor serving Kelowna and Vernon.