Many young people in the GTA find themselves in what feels like an impossible dilemma. You understand the importance of getting into the real estate market and becoming a property owner sooner rather than later. 

The problem is that housing prices are soaring all over the region, and rising interest rates put your dream even further out of reach. You could look elsewhere, in a part of the province or even the country, that is more affordable. But the GTA is where all of the action is, and there’s nowhere else you want to live. 

It’s not just the night life, shopping, and entertainment scene that keeps you here. You also have unfettered access to premium education and more potential career opportunities than anywhere else. Is there a solution available to you, or are you destined to rent forever? In this post, we’ll explore a few creative options and resources that could have you turning the key to your first home sooner than you thought.

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Think Like an Investor

You’ve already considered and dismissed the idea of living outside of the GTA. However, that doesn’t mean you can’t buy in a less expensive area. What if instead of buying a house to live in, you bought one to rent out? Your investment allows you to get into the market as a homeowner. Now you’re starting to build that all-important equity that will open up future options for you. Best of all, you’ll have a stream of passive income heading your way each and every month!

Many first-time buyers are taking advantage of lower prices in other areas, ranging from just outside the busy GTA to cities like Napean, Sarnia, and as far away as Thunder Bay, as a way of getting into the market. Some people are really getting creative and finding opportunities in Winnipeg and other places outside of Ontario.

The ability to buy where houses are still affordable while continuing to rent where you want can help first-time buyers overcome many obstacles. However, this solution is not without considerations and challenges of its own:

• If you buy outside of Ontario, the rules and guidelines may be different. A little research now can prevent a lot of headaches later on.
• Finding and vetting potential tenants might be a little tricker from a distance. Modern technology like Zoom and Google Meet makes it possible, but nothing quite beats meeting someone in person to determine if they’re a good fit.
• You may need to hire a property management firm to handle maintenance and resolve disputes, which can reduce the profitability of your investment. You’ll want to work with an experienced Realtor® to ensure the numbers work in your favour.

Searching for more resources for buying real estate in the GTA? The posts below will get you off to a great start:

• Buying A Home? Know These 4 Important Mortgage Options First
• How To Prepare For Your GTA Home Purchase
• Inside the Hunt for a House in the GTA

Close-to-Home Solutions for GTA Buyers

Buying in a less expensive city represents one possible solution for first-time buyers. However, you don’t necessarily have to look to Winnipeg and beyond to break into the housing market. Sometimes, you can find something right in the GTA. 

For example, a small condo in the heart of downtown Toronto might not be what you want for yourself. But consider this: High rents have become a fact of life in Toronto and the surrounding areas. Residents and newcomers alike now regard it as a cost they’re willing to pay to be in one of Canada’s most desirable cities. 

Even if you find a property that simply breaks even, it is still a fantastic investment that builds your equity and grows your wealth and financial security over time. As the value of your unit increases, you begin to have options. You can sell it at a profit to upgrade to a bigger home with a backyard for entertaining. And who knows? That little condo might one day be your dream retirement home or the perfect starter place for a family member. 

Want to know more about how Team Rajpal helps buyers? Find out about our values and processes in the links below:

• Our Bold Buying Approach
• Got Questions? Book Your Free Buying Strategy Session Here

What If You Don’t Feel Ready?

Buying a home is a milestone that often feels triumphant and terrifying at the same time. Your logical mind might tell you that real estate is an excellent investment and that it’s good to get into the market as early as you can. Still, it’s normal to feel nervous about such a significant endeavour. And there is a big difference between feeling ready and being ready. How can you make your first home purchase more of an enjoyable experience from the beginning? The following steps can help you stay on track:

• Talk to a GTA Realtor® with a track record of helping first-time buyers. They can help you discover more resources than you realize, including several government programs designed to support you.
• Start by researching the market and learning to sort fact from fiction (your real estate agent can also help with this.) Your purchase will be much less intimidating when you’re working with accurate information.
• Explore your options with an open mind. Just because you’re looking at the possibilities doesn’t mean that you have to take the leap.

Out-of-the-Box Thinking Can Make the Impossible a Reality

In this article, we’ve highlighted a few of the creative solutions that could be available to you as a first-time buyer, and we’ve barely begun to scratch the surface! A local GTA Realtor® can help you uncover even more ideas to help you own a home sooner than you realize. Here are a few examples of how some first-time home buyers are reaching that celebrated milestone:

• Consider buying a house, living in one room and renting out the rest. Your monthly income could cover or even surpass your living expenses. This is a great opportunity for university students and young buyers!
• If possible, buy with a partner. A trusted relative might be willing to help with the down payment or cover some of the monthly carrying costs in exchange for partial ownership.
• Look into a rent-to-own or fractional ownership opportunity. This type of purchase requires far less money upfront, and there are a few companies right in the GTA that can help you get into the market.

Above all, remember the benefits that go along with owning your own home. Financially, you’ll be on your way to greater equity and increased purchasing power as housing values rise. But nothing compares with the sense of security and accomplishment that you will feel once you see the deed with your name on the title. 

Are you ready to begin exploring your options as a first-time buyer? We are here to help you through all of the ups and downs along the way. Reach out at info@teamrajpal.com or call 647-875-8000 to take the next step.

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