Renting, Or Living At Someone Else's Expense?
If you are not looking to buy within the next 6 months, then get off this page, get off this website, get off Realtor.ca and PLEASE don't visit any Open Houses!!
Straight To The Point
The housing market has increased at a rapid pace since I started this career almost 10 years ago. When I started, you used to be able to buy a solid starter home with some room to grow and an attached garage for about $225,000. Then that magic number quickly jumped to $250,000... Skipped right over $275,000, and sat at $300,000 for a short stint. $325,000 became $350,000, which still allowed some beginners to do it all by themselves. Then the 2017 spring market hit, and that number is now $450,000... and maybe we need to talk about how much you want that garage.
What I'm saying is Waterloo Region has just kept going up, with the exception of a few small areas that I would not let you buy into if given the opportunity to be your Realtor. The Light Rail Transit is causing people who have information-based occupations to choose to live in the Region, as they see this infrastructure supports future growth. Our College and Universities also attract thousands of smart minds, many of whom decide to stay and call our Region home. I know this to be true as I speak to these people all the time. Add in the fact that the City of Waterloo is at its urban boundaries and you need to go to the distant reaches of Southwest Kitchener and Southeast Cambridge to find fresh land to build, it's no wonder people are staking their claim in some Real Estate here.
So... $625,000??
Yes, $625,000 to get something solid. I also need to remind myself to update this webpage regularly.
I don't mean to be negative, but what I want to make sure is that you understand that you need to accept this reality and the challenges that this reality might present. Then you will be able to honestly take inventory of your abilities and finances and get everything that is in your control in order. Reason being, that is exactly what the people that are buying the houses are doing. The people that are buying the homes aren't complaining that this is crazy, they are knowing what they need to do, and finding a way to get it done.
Window shopping and looking at asking prices is not a relevant form of research, as most homes around and under this price point in Kitchener Waterloo are selling for over the asking price anyways. When you are making mental models of the homes you've seen online, or hopefully not at open houses, those homes were pretty much all too good to be true. I need to break this down to you, so you can tell your wallet and your heart those unfortunate realities.
Great... What Now?
After at least visiting your bank for a prequalification and some starting figures, I would suggest that you see what your budget allows you to purchase and either come to terms with it, or decide if it might be time to swallow your pride and ask your parents if they can give you some financial assistance, if there is a chance for it. Hopefully your folks will understand that it isn't really you that has been squandering all types of excess cash, as the reality is that the affordability of homes to average incomes keeps going down year over year. If you are in a multiple offer situation with 3 or more other Buyers (which is a common occurrence these days) you can count on the fact that one of those 3 Buyers are putting in their offers with at least some assistance from the Bank of Mom & Dad. Do you think more than 5% of First time homebuyers in Toronto are doing it themselves, on even a semi-detached home? I don't – How could they? I have great mortgage specialist that you can contact, but great service and good rates do not create affordability (sorry).
Truth Is
...we might be looking at a Semi-detached home, townhouse or apartment style condo, which all have their unique benefits. I will tell you one thing – Even though it might not quite have that white picket fence, it will be all yours and you will understand what pride of ownership feels like. If you have the time to visit Buying a Lifestyle, you should also be able to start to create a vision, for yourself, of that first home.
Reach out to us, The Watty Way is here to help, and nothing is more satisfying for us, than getting someone into their first home. Its because that look on your face when you get it, and are walking around your own home, planning your next dinner party is just so darn cute!
