The GTA is an area full of opportunity and experiences, making it one of the most desirable locations to purchase a home. If you are looking to buy a house in the area, staying up to date on the requirements for a mortgage and the current costs of living there are important. Make your move simpler with these tips for entering the GTA housing market.

Set Reasonable Expectations

One of the biggest mistakes a first time home buyer can make is to set the bar too high for their first purchase. In the GTA, housing prices can be very high; averaging around $786,643 for a single detached home. Instead of expecting to find your forever home the first time you buy, consider more affordable options. Setting more reasonable expectations will prevent you from being disappointed when you can’t afford your dream home right away, and will allow you to break into the housing market sooner.

Follow a Timeline

Although purchasing a new home is exciting and can start the next chapter in your life, it is important to create a timeline that is feasible for you to follow. Considering the price of housing in the GTA, it might be more reasonable for you to take some extra time to save. Budgeting on everyday costs will help you save and living in a shared household can keep the living expenses down. If you don’t rush the process, you can be sure you are financially ready when the time comes.

Budget Accordingly

Regardless of where you purchase your home, it is important to budget accordingly to prepare you for all the costs associated with buying a new house. Saving money for realtor fees, lawyer fees, a down payment, taxes, and utilities before you buy is an important step to take so you are prepared for the final stages of the process. Take time to assess unnecessary expenses you may have and put that money towards your savings for the new home instead.

Consider Resale Value

The GTA housing market has increased in value in the last few years and is now comparable to the Vancouver housing market, with average sale prices jumping 26% per year. With a housing market that is so prosperous, it is important to remember that your home could sell in the future for more than what you originally purchased it. Taking the resale value into consideration is an important factor to consider when you enter the GTA housing market because it could help you in the future when you are looking for your dream home.

Start With an Investment Property  

One of the most popular ways to successfully purchase a home in the GTA is to purchase a property and either rent out rooms or the entire home. The income from the tenants will help pay down things like your mortgage, allowing you to easily break into the housing market without the stress of worrying about mortgage payments.

When you are ready to enter the GTA housing market being prepared will make the process easier and relieve the stressors associated with purchasing a new home. Following these tips will help you on your way to purchasing in the GTA and make the process simple and stress free for you. For more information on entering the GTA housing market visit the Falconcrest Homes blog.

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