Buying a home for the first time can be a daunting experience, and even more so if you’re trying to buy in Toronto right now. As prices continue to rise, for many millennials it may feel like the goal of owning a house in the city is slipping out of reach. However, here are a few strategies to think about if you’re set on home ownership.
Consider a condo
Many people dream of owning a house, but sometimes it may take a couple of extra steps to get there. While the condominium market is on the rise again, purchasing a condo in downtown Toronto is still a more affordable option than buying a semi or detached home, and it gets you into the market. But don’t forget, you’ll have to factor in maintenance fees, which vary based on the condo, on top of your mortgage payments.
You could plan to live in your condo short term (maybe only a couple of years), before selling it in favour of buying a house—and while you may be wary of space constraints, location is the trade-off for many Toronto condos, with easier access to restaurants, entertainment, and transportation, plus you can take advantage of amenities like a gym or pool, which you’d be unlikely to find in a house. Alternatively, instead of selling, you can opt to rent out your condo when you move and use that monthly income for your new property.
Thinking long term? Learn about investing in pre-construction condos in Toronto.
Some millennials are getting creative in order to get into the market, and one strategy has been to pool financial resources to purchase a house. If this solution works for you, make sure to have iron-clad contracts to legally deal with the financial arrangements and any issues that may arise down the road, such as what happens if someone wants to move out.
Think outside the city
Are there certain must-have items on your checklist for a home, like a large backyard or a driveway? In this case, you may want to sacrifice the Toronto address and expand your search to include the suburbs, where it may be easier to get into the market right now, or at least offer more for your budget. You can always re-evaluate where you want to live in a few years.
While it can be difficult to put the idea of owning a home in Toronto on hold, with more opportunities for remote work, expanding transportation options in the Greater Toronto Area, and new amenities and attractions popping up constantly, living outside of the city may end up being a great choice. And if you’re willing to look even further, other cities like London, Windsor, and Guelph are considered more affordable.
Are you looking for a way to get into the Toronto housing market? Reach out to our team to start your buying journey today.