Without question, the dream of home ownership is a desired goal among the majority of Canadians. First-time buyers are no exception. According to studies, home ownership gives people:
Because of this, the fear of buying is often overshadowed by the excitement and expectant pleasure of owning a home of one’s own. The dream of home ownership is equally true of first-time buyers.
No Doubt, Doubt Can Surface:
Fear of buying can cause painful questions to surface and get in the way; questions like the following: Is it the right time to buy? Is it the right purchase for me? What if I make a mistake, what will my friends think? Will the payments interfere with my other obligations? Will it hamper my lifestyle in general, and what am I willing to give up? Such questions can unnerve and paralyze.
Pleasure of Owning Can Inspire
Yet desire and a strong motivation to buy open the door to more empowering questions, such as: What will I enjoy about owning my own home? What excites me most? How great will being boss of my own home be? How much will I enjoy decorating without landlord control? When can I use the equity growth to move up to a better home? Such questions inspire action to buy.
What Else Can Hamper Buying?
First-time buyers can often have great expectations. That is the home they want to buy and live in is beyond the size of their wallet. This too can get in the way of buying. They might want a home that gives them the lifestyle they are accustomed to having living in their parents’ home. But it’s unavailable in their price range. An inground pool, a fairly high-end location, 1,800 plus square feet: such features are generally not found in homes in average to lower than average prices. To resolve these conflicts first-timers should consult with two industry insiders:
- Meet with a trusted mortgage broker to carefully review income, debts, credit rating and monthly expenses. This will allow them to arrive at a maximum mortgage with which to buy and feel comfortable. If the amount is in line with affordability, any discomfort and anxiety usually dissipates within a few months of ownership.
- Then, before setting out to view homes, sit down with a trusted REALTOR® and review active as well as sold listings in their price range with a view to what these homes offer. By contrasting “must haves” from “would like to have” the anticipation of buying becomes easier, more exciting and a pleasurable journey.
The 5-Year Plan
Lastly, you should consider buying with a plan of owning your home for at least five years. Typically this will insure that you will have improved your equity position, both from the appreciation of the home and the paying down of the mortgage principle. Of course market conditions will play a role in deciding when to sell as well. With this approach, you can both enjoy living in your home and profiting from it.