Navigating the path to homeownership in a challenging market.
The road to homeownership is paved with good intentions. Get a slice of the Canadian dream, put down roots, and host the ultimate August long weekend backyard BBQ. Sounds like a worthwhile pursuit. But the truth is, for many Canadians, the dream of owning a home has never felt more out of reach. If navigating the path to homeownership feels like an impossible task, we’re here to guide you through some of the alternative options that make it a little bit easier to enter the market. If you’re an outside-the-box kind of person, you’re in the right place.
Handyman’s dream.
Handymans Dream
There are endless possibilities with a home that needs a little TLC. And endless benefits if you’re good with a hammer. Fixer-uppers are often priced lower than move-in-ready homes, making them more accessible to buyers on a budget. This lower initial cost can provide an entry point into the competitive BC market. You can also expect to find less competition when it comes time to make an offer. Many buyers may shy away from fixer-uppers due to the time and effort required for renovations. This can result in less competition during the buying process, giving you a better chance of securing the property.
It’s also important to think about potential rental income. If you choose to renovate your fixer-upper, you could consider adding a rental suite, often referred to as a “mortgage helper”, because they do just that. If you're able to create additional living spaces or units during your renovations, you can generate rental income from your property, helping to offset mortgage costs and other expenses.
By investing your own time and effort into renovating a fixer-upper, you are essentially contributing "sweat equity" to your investment. This can be a cost-effective way to add value to your property while minimizing your out-of-pocket expenses.
Note: Because the home has already been lived in, you can say goodbye to the hefty GST cost that comes with new homes in BC.
Honey, I shrunk the house.
tinyhome
Vancouver’s housing crisis is no secret. More homes and more affordability are needed now more than ever, but options seem bleak and solutions far away. Tiny homes, modular homes - even houseboats and other unique housing options are becoming increasingly popular in markets that are challenging to enter.
Though we’re not suggesting dropping anchor and sailing the seven seas, small homes and laneway homes in particular are inventing a unique and creative solution to this growing need. In many cases, they can also help by creating a second space that is affordable and practical. For example, Frame Living builds mini homes starting at just $135,000. Frame’s mission is to provide additional space, whether it’s a second home for family growth, a property rental to generate more income, or the addition of a high-end office space. Creating another dwelling space on the same property reduces costs and gives you more space on your existing property. With their turn-key solutions, these small homes are a way to enter the market with a small budget while maintaining style and comfort.
New could be better.
Purchasing a new apartment in BC could be a smart option for those struggling to enter the real estate market for several reasons. Apartments are generally more affordable than single-family homes, making them an attractive option for first-time buyers or those on a budget. New homes also often require as little as 5% down, with remaining payments being fulfilled over the course of several years up until the project is completed. Should prices rise over the course of the build, you’ll be in good shape when it comes time to move in.
Additionally, developers often offer incentives, such as reduced down payment requirements or promotions, to attract buyers. Keep your eye out for incentives and act quickly when you find a new home that fits your needs.
Up and coming.
Planning your first purchase might mean looking at a location that has a bright future - maybe a transit extension is in the works or a new hospital or school is coming to the area. Too often, homeseekers kick themselves for not investing in an area that’s on the rise. Don’t make the common mistake of missing out on the next big thing, instead sink your teeth into a piece of property that has promise for big growth potential.
Check the municipality guidelines about future locations for schools and hospitals to lead you to the next happening neighbourhood - and pay close attention to REW’s Guide, which often features neighbourhood spotlights in BC. Along with hospitals and educational institutions, explore neighborhoods where bus loops and public transportation come to a halt. Check to see areas where there is a growing population, a low-key community today might be a hub for gathering and growth tomorrow. And where you want to live for the long haul.
The perfect home for you and your family could be right around the corner. Keep exploring REW, set property alerts, and don’t forget to think outside the box if entering the market is a priority.
