Deciding to buy a house or condo is a huge decision so it’s normal to have some concerns. Today, we’ll address the top concerns we hear from Toronto first-time Buyers.
What if I buy now and prices decrease?
The number one concern from first-time homebuyers is the fear that prices will go down. What if I buy a condo for $650,000 today and the real estate market softens and it’s only worth $600,000 in 6 months?
Reality Check #1: You only ‘lose money’ if you sell your condo for $600,000 in 6 months.
Reality Check #2: You only ‘make money’ if you actually sell your condo too.
It doesn’t really matter what happens to the real estate market statistics unless and until you plan to sell. And hopefully, if you’re getting into the real estate market today, you aren’t planning on selling anytime soon. Long term investing is always the best strategy (and not just for real estate).
Should I wait until prices go down?
People have been waiting for real estate prices in Toronto to fall for years. Year after year, they pay rent and they wait (all the while get priced out of the market). How will you know when the bottom has been reached? How will you know it’s time to stop waiting?
Reality Check #3: We only know we’ve reached the bottom (or top) AFTER it’s come and gone. Timing the market is dangerous and almost impossible to do.
Can I afford to buy a property in Toronto?
Buying a Toronto condo or house is expensive and you need to go in with your EYES WIDE OPEN. You need to think about downpayments, financing, incentive programs – and of course prices. Here’s what it cost to buy the average house or condo in Toronto in 2019:
| City of Toronto | Peel Region | Durham Region | York Region | Halton Region | |
|---|---|---|---|---|---|
| Average Condo Price | $656,233 | $494,162 | $368,190 | $552,144 | $532,583 |
| Average Detached House Price | $1,363,357 | $1,014,287 | $696,665 | $1,145,451 | $1,114,808 |
| Average Semi Detached House Price | $1,044,737 | $713,636 | $511,788 | $813,7733 | $733,100 |
| Average Townhouse Price | $642,731 | $578,640 | $437,322 | $629,572 | $576,547 |
First-time buyers need to be fully aware of the Closing Costs and be prepared to pay condo fees, taxes and a lot of other expenses that you don’t currently pay your landlord.
A good REALTOR will arm you with the costs (both closing and monthly) so that there aren’t any surprises.
Reality check #4: Never, never, ever buy as much house or condo as the bank thinks you can afford.
We’ve said it before and we’ll say it again: buying a home isn’t about trying to time the market or doing what all your friends are doing. It’s about having a roof over your head and falling in love with a place you can call home, when the time is right for you.
Related: First Time Buyer Guide
Related: Should You Rent or Buy?
If you want to discuss your concerns as a first-time buyer in Toronto, give us a call or send us a message. We’d be happy to chat.
