Are you ready for home ownership?

3 questions to help you decide if you’re ready for home ownership:

There’s a season for everything in life. It can be great to feel like you’re not tied down, free to travel and accept opportunities anywhere!  It can also feel really good to put down roots, build community, and know that you’re building up your personal net worth by owning your own home.  Deciding to purchase a home, especially your first home, is a huge decision. Here are 3 questions to help you figure out if now is the right time for you!

1. How long do you think you’ll be living there?
   If you think you’ll be in the Edmonton area for at least 2 years, you might want to think about buying. But if there’s a good chance that you’ll find yourself moving to Calgary in a year or so, you might want to hold off. While your home might increase in value over that time, it’s important to consider the cost of selling. From real estate representation to legal fees, there are costs associated with selling. And there’s a lot of work to prep your home for sale to present to the market.  But if you think you’ll be here for more than 2 years, the gains you’ll hopefully make in value start to outweigh the costs an inconveniences of selling. Plus you’ll get to enjoy the invaluable benefits of home ownership!
2. Are you ready for the responsibility as well as the fun of home ownership?
   There’s more to the cost than the purchase price, legal fees, and property taxes. Even in an apartment condo you’ll be responsible for a lot of home maintenance items. No more calling the landlord when the dishwasher breaks for instance. Can your budget accommodate the maintenance costs as well as the mortgage etc?
3. Can you afford to purchase where you’ll be happy?
   While it’s reasonable to expect that your first home won’t be your dream home, you also don’t want to compromise so much just to get into the market that you don’t like where you’re living. It’s one thing to decide you can live without in-suite laundry or an elevator in your first condo. It’s another to live in a neighbourhood that’s an hour long commute from your job, taking 2 hours a day away from your social life.  Being willing to make compromises to get your first home is smart, just make sure they’re the right ones.

And here’s one more thing to consider… what’s happening in the market right now?  The Greater Edmonton Area has been in a seller’s market for a long time. There are some early signs that we might be moving towards a more balanced market overall. This means you might find yourself in fewer bidding wars for your purchase and feel like you’ve finally got a wee bit of negotiating power.  Keep in mind that the “average market” really doesn’t exist though.  The Edmonton area is made up of hundreds of micro-markets. The pace of the market varies dramatically by neighbourhood. It also varies dramatically by price range. For instance, a downtown high rise condo priced at $250,000 is in a very different market from a single family home in Sherwood Park priced at $450,000.  It’s really important to understand the pace of the market that you’re interested in. Sometimes checking in with a Realtor you trust to get the lay of the land will be all you need to help you decide if there might be an opportunity window for your first purchase. Reach out to us anytime to chat about this topic or anything else real estate related. We’ll always be happy to help you make a smart decision that’s right for you!

PS November and December can be great times to go house hunting.  While there might be fewer homes on the market, there are also a lot fewer buyers out looking. This all adds up to less competition for you!