While there are many financial indicators that point towards a successful home purchase, it’s equally as important to consider homeownership from an emotional (and practical) perspective. Yes, purchasing a home makes a strong financial investment, but it’s also the centrepiece of your everyday life.
Here are 5 telltale signs that it’s time to upsize from rental housing to your first home purchase.
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1. You’re Starting a Family
Starting a family is a fairly common motivator for first-time buyers in Toronto, and it’s easy to understand why. Welcoming children, while exciting, means you’ll need a lot more space. Although it is possible to raise a child in a smaller rental unit for a few years, it’s much easier to buy a home ahead of time.
2. You’re Staying Put
A great first home should meet your existing needs and serve as a launchpad for future growth. Buying a home is a big commitment both financially and from a lifestyle standpoint. However, if you’re happy with where you are in your life and are ready to lay down roots, buying a home is a smart way to do just that.
As a general rule, if you have the financial means and don’t intend to move for at least five years, it could be the right time to buy. Beyond the stresses of moving, selling your home (and buying another) comes with a lot of additional expenses. If you plan on moving again in the next few years for any reason, it may be best to wait.
Dreaming of buying your first home? There’s a lot to know before you enter the market. Explore these blog posts to expand your knowledge about the process of buying a home in Toronto.
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3. You’ve Got a Strong Financial Foundation
As a homeowner, your monthly mortgage payments will be one of your largest recurring expenses. Looking into the future, you’ll want to ensure you’ll be able to make regular payments on time. If not, you could find yourself in hot water. However, If you’re well-established financially and have a stable career or income, you’ll be able to find the perfect home for your needs.
4. You’re Ready to Invest
As a renter, you’re essentially paying your landlord’s mortgage. When you upsize to your first home, it allows you to finally build equity for yourself instead of someone else. As you’re able to grow your wealth through your home and avoid stressing over rising rental rates, it’s an ideal move both emotionally and financially.
Looking for more insights about building equity? Check out our blog post about luxury investments beyond the realm of real estate here.
5. It’s What You Want
The right time to upsize and buy your first home will always be when you’re ready to. Buying a home is a big commitment, but it’s also exciting. As an upsizer, you’ll have greater freedom and flexibility in how you enjoy your home. If you know what you want in a home and you’re ready for the commitment, upsizing can offer you the exciting perks of being a homeowner.
Buying With Your Heart vs Buying With Your Head
Today, some would-be buyers are hesitant to purchase a home because they believe that if they wait for a “better market” they’ll be able to get a better deal. While it’s great to be aware of how market changes can impact home prices, at the end of the day, waiting on “ideal buying conditions” could leave you on the sidelines of homeownership for several years.
When it comes to your first home, it’s important to buy with your heart as well as your head. Think of your home like a wedding ring. A wedding ring carries two values, the first being the emotional or sentimental value you’ve attached to it, and the second being the physical value of the ring as an item. Like a ring, a home’s market value can fluctuate up or down depending on broader economic elements, however, its emotional value to you will always remain the same.
Therefore, if your heart is telling you it’s time to buy a home, it makes sense to do so. If you do have concerns about your financial eligibility regarding homeownership, talk to a real estate agent. Their up-to-date market knowledge can help you determine what you can afford. They can even help you take advantage of tax rebates to ensure you use every financial tool available to help with your home purchase.
Ready to buy your first home in Toronto? As market-leading real estate experts, we can help you find a home that speaks to your heart. Send us an email or call 416-587-3300 to discover your path to success.
