Due to economic conditions, most young people have had to hold off on their homeownership dreams. But recently, there’s been a shift. We’re seeing more and more members of the millennial generation entering the condo market.
While buying your first condo is something to celebrate, there are also a few things you should know as you begin your search. Learn what you can do to ensure the process goes smoothly in our millennial homebuyers guide…
Know your lifestyle as millennial homebuyers
If you’re like most millennial homebuyers, your needs aren’t the same as your mom or dad’s were. If they’re in any way involved in the buying process, make sure your parents truly understand your lifestyle and the importance of finding a condo that suits it.
When you’re dealing with sellers who are older than you are, it’s also important to ask the right questions. Do you want to have access to plenty of greenspace? Should your neighbourhood be cyclist-friendly? And how important is public transit? A seller with a completely different lifestyle might not have the same idea of what constitutes “plenty of greenspace” or “cyclist friendly,” so be specific.
Think long-term
Economic factors have led many potential millennial homebuyers to rent for longer periods of time than previous generations. If this sounds like you, buying your first condo will probably require a big mental adjustment. A condo is more than just a place to live. It’s an investment. It’s one thing to be aware of this fact, and quite another to take on an investor’s mindset.
Knowing whether the condo you’re considering is a good investment means getting the most complete picture you possibly can of its potential resale value. Figure out which features and amenities are most in demand. Consider historical real estate data for the neighbourhood you’re in. And above all, embark on your first purchase with a good basic understanding of market trends in order to make a truly informed decision.
Create an aggressive downpayment savings plan
Maybe you have student debts. Perhaps you haven’t been working long enough to have a large nest egg yet. Either way, if you don’t have the amount you need for the condo of your dreams, you have two options.
One, you can work with a real estate agent to see if you can find something within your budget. Two, you can save up for a larger downpayment. If you prefer the second option, start by familiarizing yourself with the market. Figure out how much you have to save, and what your preferred timeframe is. Then work toward your goal by budgeting—aggressively.
You might want to set up your banking so that a certain amount of your regular pay goes automatically into a savings account.
Talk to a mortgage specialist
Every buyer enters the market with their own set of financial circumstances. For many millennials, student debts are a part of those circumstances. For others, the economic climate may have resulted in a limited credit history.
It’s important to sit down with a mortgage specialist and determine how these factors will affect whether you can get a mortgage, and what type you can get. With the recent mortgage stress tests that have come into effect, preparing to buy a condo might mean a bit more planning and waiting than you thought.
Talk to one of the condo experts at the Christensen Real Estate Group
As millennial homebuyers, you’re aware that knowledge is power. You most likely grew up with easy access to information, and your internet research skills may come in very handy if decide that you’re ready to embark on your first condo search. But that doesn’t mean you should go through the process alone.
Our condo specialists have access to listings and databases you don’t. We also have extensive knowledge of the market, including the comparative value of different properties and the ways in which past trends could impact the future of your investment. This information can help you at every step of the condo-buying process—from searching to negotiations to closing.
In short, your real estate agent should be your most trusted advisor during the home-buying process. Are you interested in finding out more about how an experienced condo market expert can help you?
For over 30 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at niels@christensengroup.ca or calling us at 416-441-2888 ext. 772.
