With home prices rising daily throughout Ontario, potential home buyers are often facing some difficult choices when it comes to finding homes for sale that suit their dreams. First-time buyers in particular are finding that their expectations often do not match their budgets, especially now that they also have to do the government's new stress test for new home buyers that essentially looks at what they will be able to afford in the future if interest rates go up. Many home buyers are being approved for much less than they were recently, making the window for homes that they can afford even smaller.
Here is how to find that perfect home of your dreams to suit your budget when the real estate market is hot.
Your first step is to get a pre-approval from a qualified lender. This will give you your maximum budget and will give you an idea of what sort of price ranges of homes you should be looking at. It will definitely rule out many houses and neighbourhoods where homes sell for more than you can afford.
One item to note is that many homes for sale are selling for over asking price, so while you may find that home that you covet; it is possible that someone with a higher budget will snap it up before you even get a chance to look at it. Give yourself a good range to look in, considering homes that are way under your current budget. This will give you room to maneuver if you find yourself in a bidding war.
You may feel disappointed at the lack of inventory on the current market, feeling like you just are not finding "the one". But, by changing your mindset and realizing that this is your starter home, you may be more flexible on what you actually need and want in that first home. Prioritize factors like location, space and what repairs might be needed over aesthetic concerns.
With home prices the way they are, many empty nesters are selling their homes and making a good profit. With their children getting priced out of the real estate market, they often feel an obligation to help their kids by padding their down payment with the profit they made from their own homes. Borrowing from the bank of Mom and Dad could be a good idea if it helps get you into the current real estate market. Just do not borrow so much that you put yourself into a debt situation that you will never be able to get out of.
Many new homebuyers think that a house is the direction they want to take in order to realize their dreams, but many families are finding that condos for sale in Collingwood are providing them exactly what they need -- a roof over their heads -- with the added amenities that many homes just will not have in this current market.
One of the best ways to find that perfect home of your dreams and keeping it in your budget is to move out of the city. Generally, the further away from Toronto, Kitchener or Guelph you are, the more affordable housing becomes -- consider the following "if you are able to commute or make arrangements to work from home" than the option to move further from the city to buy that home of your dreams just opened a whole new door!
There are tons of homes on the real estate market in South Georgian Bay that definitely fit everyone's budgets. Do not get priced out of the real estate market -- buy now using the strategies above to keep you within your budget.
Even though the prices are dramatically lower in the South Georgian Bay area -- the buying pace is not. Be prepared by getting pre-approved, than be prepared to put an offer in on a house you like as soon as you see it. When a real estate market is hot like it currently is -- the perfect dream homes do not last longer than a week!
A quick and easy solution to monitor when new homes hit the real estate market ...