Over the last number of years, Toronto has become one of the fastest growing cities with respect to real estate prices. This has hurt millennials who feel shut out from the dream of homeownership.
Affordability is a significant and widespread issue and one that has also extended to the rental market. The rental market has become just as competitive and pricey as ownership. And why should landlords get your money without any real benefit to you?
Let’s look at some reasons why millennials should consider entering the real estate market in 2019.
Choose a Neighbourhood that Makes Sense
While it may seem more affordable in the short term, millennials who are not already in the market would be wise to make 2019 the year they jump in.
You may feel priced out of the midtown area and the downtown core, but there are various spots across Toronto to explore. Maple, Markham, Scarborough, the Junction, the Danforth, are all expanding and changing in housing and demographics. Public transit options are also changing accordingly with the subway expansion, light rail growth, and various Go train locations.
The GTA is becoming more accessible and well connected so maybe it’s time to expand your search beyond Little Italy.
Short Term vs. Long Term Payoffs
Ultimately, affording a down payment on a mortgage can be daunting, but monthly mortgage payments can potentially be lower than rent prices. In the long run, you are also paying towards owning and building equity and credit, while the value of your home is likely appreciating.
Buying a home is like investing your money in a term deposit that doubles as a place to live. You have complete control over renovating, downgrading or upgrading.
A Great Investment Option
Although there may be some risk involved, such as a real estate crash, the market is always cyclical and, therefore, you can wait until prices go back up to make a profit by selling. And while home ownership may come with some headaches, there is also satisfaction and payout in having the security and stability of your own living quarters, not to mention not that you can’t be “kicked out” by a landlord who wants the place back.
Contact us today to take the first step towards becoming a homeowner!