3 Questions to Ask Yourself before Buying a Home!

December 18, 2021

Saturday, December 18, 2021

You may have been renting for quite a while or thinking of moving out of your current home for various reasons, but any thoughts of buying a new house may make you feel uncertain. If you are wondering whether now is the right time to enter the real estate market or how much you can actually afford or whether you should even bother getting a new house at this stage, then read on and perhaps we can clarify the questions you have to help you understand whether you should go for it or not.

Is it the right time to buy a home?

You may find yourself wondering if now is the right time to get into the real estate market or not, given the soaring prices of real estate in GTA. You may be hoping that the real estate market bubble will burst sooner or later and buying now, it will surely cost you an arm and a leg.

Every buyer’s situation is unique. For example, if you are a homeowner looking to move up, you could get a great deal by selling your house and find your forever home in this market condition. The crux of the matter is that whether it is the right time to buy or not depends on your unique situation a lot more than it does on the market conditions. If you are waiting for the prices to go down, you never know how long you may have to wait.

Can I afford a home?

We understand that the current Toronto market is definitely seller-friendly and every month house prices keep rising and breaking records. That does not mean you should be discouraged and give up your dream of homeownership. There are many ways you can get into the real estate market even if you do not have a million dollar tucked in your bank account. Look at first time home buyer incentives program. Search homes that are affordable for you and map out your financial goals for the next few years - such as saving down payment, improving credit score, seeking preapproval and do not forget the closing costs can be a huge chunk of your home buying expenses too.

Should I even bother to buy a house?

You might feel like buying a house at this point is simply not worth it. No one knows your situation better than you. If you feel like you can afford a home, you need to look at other factors too – such as priorities in your life. For example, do you see yourself living in one place for a long time or do you want flexibility? You also need to realize homeownership comes with a lot of added responsibilities which you can easily forego if you are a renter. Are you prepared to tackle those responsibilities? If you answer yes, then you are mentally prepared to buy a house. Coming to the financial part, while you may want to start looking for houses that are close to your forever dream home, as a first time home buyer, you need to focus on building equity. For example- start with a condo, hold on to it for some years, and then move up. This way you will be one step closer to your dream home while building your own equity instead of paying someone else’s mortgage.

If you are looking for an awesome realtor in your area, feel free to call Arul at 4165189782 or email luckyarulhomes@gmail.com