Real estate is one of the most sought investing areas as many people want to own their living space or want to take advantage of the rapidly growing real estate prices for investing. However, there are many factors to considers before making a move. This week on our Live, we discussed top real estate trends and strategies for homebuyers with Despina Zanganas from I Am Despina.
What are some of the real estate trends?
Women Improving Their Wealth:
A common demographic in the real estate market is women investors who have made significant profits by flipping houses within the past 5 years and now are investing in larger properties with their partners. Since the real estate market is constantly growing, finding any opportunity to get your foot in the door can significantly benefit you in the future. If you have a partner, this might also help you to invest in bigger properties as you may have more combined assets as a couple.
A huge trend in the real estate market is laneway housing, which are 2 storey houses built to the same lot as houses which are sold between $300,000-$500,000 if you have land. This option is great for families who might want bigger space for their kids or for individuals who want to add value to their homes. The process to apply is detailed, but it might be worth it if you qualify and can get through the process.
Focus on Females and Singles:
There currently is a significant focus on female homebuyers in the real estate market. There are companies and condominium projects such as REINA who put focus on what women seek in housing, as well as singles who are looking for a space that meets their needs.
An Increasing Shift to Suburban Areas:
The real estate market during COVID has had more dramatic fluctuations than the previous years. With the lockdown implications on spending, many people have had more opportunities to save money and are exploring a wider range of real estate opportunities than before. Also, the want to move to more spacious houses in suburban areas has increased as many people were locked in their homes for nearly a year which changed the trends in the real estate market.
The COVID Impact:
The changes in workplace structures impact the real estate trends as well. As many companies now allow their employees to work remotely due to COVID, more people move from Toronto to the suburbs due to affordability.
Changing Bidding Strategies:
With more people moving from Toronto to the suburbs, the bidding strategies have been changing as well. It has been common among suburban communities to bid below the asking price compared to Torontonians bidding well above and this creates an upward shift in prices of suburban homes. As people in suburban communities get outbid, the affordability of moving to suburban homes becomes more challenging.
What are some of the challenges in real estate?
The biggest challenge homebuyers face is to save a down payment for homes. In addition to saving for a down payment, the fear of losing a dream home can push potential buyers to bid more than they can afford which can build significant stress. The competition for houses is also high with a significantly high number of offers per estate which prevents many homebuyers from getting their dream homes and might become very emotionally challenging.
Our Top 5 Strategies For Homebuyers to Beat the Real Estate Trends:
Work with a realtor:
Buying a property is one of the biggest decisions you will make in your life. Find a realtor that understands your needs, budget and can work with you as a team to find the home of your dreams.
Use your skills to cut costs:
Renovating a property can get pricey especially if you need to factor this into the cost of buying a fixer up and not overpaying for it. Regular maintenance of your home and knowing how to make small improvements such as painting your home yourself can save homebuyers a lot of money.
Stick to Your Plan:
Having a plan and purpose for buying real estate can help set actionable steps to reach your goals. Creating an actionable plan and following through with each step can help you reach your goal faster and with less headaches. Despina mentioned her story of investing in her first home when she was 16, renovating it herself and selling it in 2 years as she planned. Following her initial plan helped her to avoid the bursting bubble of real estate prices that would’ve lowered her selling price had she waited longer.
Focus on Your Goals:
Although getting advice from professionals can help your decisions, listening to too many people’s opinions about possibilities and strategies might confuse you and prevent you from taking action. Our recommendation is to talk to an expert realtor and focus on the goals you want to achieve with your purchase.
Seek Professional Help Before Decision Making:
If you are looking into buying a property, call a mortgage broker to understand your eligibility for mortgage plans to set your feasible budget for investing. Once you set your budget, a realtor can help you seek properties within your budget. If you are deciding in between renovating your space and moving out, these professionals can also create a list of costs associated with renovating your existing space. Understanding the feasibility of both options can help you make informed decisions.
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