The 2018 Real Estate Market can Turn Renters into Homeowners

Anyone who has been trying to dip their toes in the real estate market for a while now knows just how intense things can get. This is particularly true if you live in a major Canadian city like Vancouver or Toronto.

The average home in Vancouver costs $1,074,834 which is exceptionally high. This is why lots of young professionals in the area are convinced that they will never be able to purchase a property in the city.

This doesn’t mean, however, that it’s impossible to own a home even if you work in a major city. In fact, a good number of young Canadians intend to buy a property in the next five years. With the right techniques, it can actually be done.

With the 2018 real estate market, things are definitely looking up for aspiring buyers. Economists and investors may be worried about the possibility of the prices slowing down, but it’s certainly a good time for homebuyers to spring into action. This slowdown can potentially turn renters into homeowners if they know how to play their cards right.

If you’re one of the millions of Canadians who want to own a house, you might be wondering what you can do to achieve your goal. To help you out, here are a few tips that you should consider.

Explore New Mortgage Options

Not a lot of people are aware that they can actually share home ownership with someone else aside from their life partners. There are now actually a few places that will let a few people pool their finances in order to buy a home.

Nicknamed the “friends and family mortgage,” this offer will let you team up with family or friends so you can afford a home. It’s actually a nice deal, especially with the high real estate prices of today.

Designed for the modern family, these kinds of mortgage options will require an additional step in the homeownership process, though. As you’ll be sharing financial responsibility with someone else aside from your partner, you might want to come to an agreement before diving in.

Consider Living in the Suburbs

Most Canadian cities have sky-high real estate prices, so if you’re not willing to spend as much money to live in one, you can always live in the suburbs. There will always be great towns and cities right next to a major one, so you’ll always have options.

The properties in such locations are always significantly lower than what you’ll find in the city. If you don’t mind the commute, going a bit farther can also easily further stretch your budget. Some people find this tradeoff worth it, others don’t. This is why it’s really up to you how you want to proceed with this technique.

Consider Condo Ownership

If you don’t really need a lot of space, owning a condo instead of buying a house can also work. Condos offer great locations right inside the city, so if you don’t want to deal with commuting to work every day, this can be a better option. You’ll just need to trade space for this convenience.

Cash In on the “Bank of Mom and Dad”

Another technique that some first-time homebuyers are using as of late is turning to the “Bank of Mom and Dad.” If you’re lucky enough to have parents with some extra money that you can borrow, you can already boost your odds of being able to buy a house.

Keep in mind, however, that this will put you in a serious amount of debt. Not only will you still need to pay the mortgage, but this additional loan can take a toll on you as well. It might also cause some stress on your relationships, so consider those things as well before borrowing more money.