Property Ladder - One Step at a Time

Many of the first-time home buyers that I have dealt with have been surprised, and maybe even a little disappointed, to see what $200,000 can get them. While it’s true that $200,000 will seldom get you a downtown condo with granite counter tops and stainless steel appliances, it’s important to know that $200,000 can still get you a very nice home – you just have to know where to look and you have to be patient.

If you’re shopping with that amount, here are the types of homes you can expect to find in your search – 2 and 3 bedroom townhomes east of Vanier, west of Westboro and south of Alta Vista, or a bachelor or 1 bedroom condo downtown or in the Byward Market. Some of you may look at those options and think to yourself “Those types of homes don’t interest me - I’ll just continue renting until I’ve saved enough money to buy what I really want”. In theory, that is a great idea, but in reality, if you keep putting off that first home purchase, chances are you’ll never end up buying that first home – the most important and hardest step to home-ownership is the first one – stop renting.

So, you’ve given your landlord your 2-month notice and you’ve started your home search but you haven’t fallen in-love with any of the properties that you’ve seen – you’re life in ruined, right? Wrong. For you first-time buyers out there, it’s important to keep in mind that you won’t be living in that first home for the rest of your life; in fact, the average Canadian lives in their first home for 3 years or so. In those 3 years, you want to make sure that your house is working for you. If you used an experienced Realtor to help you in choosing your home, you can reasonably expect your $200,000 home to be worth between $225,000 and $235,000* (or possibly more) after those 3 years.

Then you’re on to your second home and your house budget has increased by $25,000-35,000 and the types of homes you are able to afford include 3 to 4 bedroom townhomes in Kanata, Gloucester, Nepean, Orleans, Barrhaven, etc…, 2 to 3 bedroom townhomes in the downtown area, large one-bedroom and two-bedroom apartments and even some small single family houses. In just 3 years, the type of home you can afford has drastically changed.

Again, let’s fast forward another 3 years, now your $230,000 house has now increase to over $265,000* and your house budget has increased yet again. And again, the types of homes you can afford start looking more and more like that dream home you’ve always imagined.

Using this example, in those 6 years that have past, your home equity value has increased by $65,000 – that’s like someone giving you over $10,000 every year, for free! So, for those of you who have decided to continue renting and wait until you’ve saved up enough money, would you be able to save over $10,000 each year?

If you have any questions on how to stop renting and start owning, please feel free to send me an email at: tbennett@kwottawa.ca or visit my team’s website at www.bennettpros.com

*Calculated using the average increase in property values in Ottawa of 6.15%

What's a Virgin Home-Buyer?

A Virgin Home-Buyer is probably exactly what you expect - a person looking into buying their first home, but not quite sure where to start. If you are a Virgin Home-Buyer chances are you've looked into owning a home, but haven't yet dug deep enough to fully understand how the process works and what to do. Like your 'first time', you're probably nervous, unsure as what to expect, but you want it to be painless and a special time to remember. However, unlike your first time, you've probably considered using a professional to help you along the way when buying your first home. But who should you deal with? Who should you talk to?

There are literally thousands of real estate agents in Ottawa, and each come with their own specific set of skills and their own unique personality. Some are more comfortable with condominiums, other prefer single family houses, some are more comfortable with commercial real estate, others residential - it's important to find an agent who you get along with and someone who is comfortable with first-time buyers. What do I mean by 'comfortable'? It's important that your agent takes time and explains some of the basics of real estate with you - like building a home, laying down a strong foundation is invaluable. A good agent will introduce their buyers, whether first-time or experienced, to each stage of the home-search and buying processes, that way both the agent and client are on the same page and there are no surprises.

You also want an agent who is well versed in both re-sale properties and new-home construction, that way you ensure that you are looking into all homes that may potentially fit your needs and requirements. Often times agents rely solely on re-sales homes since new-homes are often a mystery, but by neglecting to search new homes, the pool of potential properties is divided in half.


For more information on how to get your home search started, please visit: http://www.bennettrealestatepros.com/ or send an email to taylor@BennettRealEstatePros.com