Just do it.
It’s funny how you don’t notice something unless you’re either directly involved with it or someone’s mentioned it recently. Like, if you’re looking to buy a particular car, all of a sudden, you’re seeing that car everywhere (Ooooh! That person has the model down. They’ve got the model up. That’s the exact one I want! Don’t like that colour, etc., etc.). Basically, everyone’s so busy with the plethora of quotidian minutiae that you don’t tend to notice certain items unless you’re specifically attuned to them.
Which is why, since obtaining my license to trade in real estate (“…in the province of Ontario”), I am acutely aware of how frequently people discuss the subject of the local real estate market (and in particular, the residential market in the $400-700k range… the meat in the proverbial sandwich). I find it interesting how this topic tends to be a common denominator as most adults – regardless of background or station – have skin in the game and want to know where they stand.
And that’s understandable.
Don’t be entitled. It takes a plan, hard work and time.
The other conversation I have become accustomed to hearing is the incessant moaning from entitled, grumble-trouser fatalists who feel like “… they will never be able to afford a home” – as if it’s a right not only to own your dream home as a first property but that the purchase ought to come easily at that.
Where’s the respect for others’ hard work and successes and your own demonstration of grit, determination, unwavering hard work and long-term focus?!
The fact is that there are properties still within reach for those with modest incomes in-and-around our city. The rub lies in the inconvenient truths that these properties will require sweat equity, aren’t as modern as tastes prefer, likely aren’t as large as you might like or aren’t located where you want (and likely where you don’t want). To me, such properties look like opportunity – and that’s exactly the approach you need to take.
Don’t rent a home forever.
I’ve seen several successful, eligible people get stuck paying higher rents because they prefer to live in a particular neighbourhood rather than take a perceived step backwards and purchase a ‘lower’ grade property; they’re renting for convenience and ‘lifestyle’ (i.e. ease and potentially flattering optics).
Don’t get me wrong. Renting has its place as a needs-must or temporarily strategic decision… but not in perpetuity. To me, that’s myopic thinking. And every month that goes by, you’re paying someone else instead of paying yourself.
Consider for a moment the argument that people don’t want to buy something they don’t like. It’s a tough mental leap to buy such a property, I know. But think about it: everyone wants the clean, everything-working, big-enough, perfectly-located home at below market value. Here’s a top tip: those properties don’t exist.
… because if none of these issues existed, the property would be a unicorn. And unicorns don’t exist, either. And certainly not within budget.
So, instead of complaining (or waiting to win the lottery), it’s best to know what you can afford and buy that. Now. Then, work your way up. Recognize that your first property (or second, or third…) is a stepping stone in the long-term strategy of eventually obtaining exactly what you want, where you want.
Move now. And as many times as you need.
The irony is that this process (as convoluted as it may appear) is likely the fastest way to get the property you truly want because over the past couple of years, price appreciation has outpaced people’s (or even couples’) ability to save. It’s like a real-life game of snakes and ladders… minus the snakes. Therefore, the easiest way to get into your ‘forever’ home, is to buy what you need to (or are able to) in order to get into the market. It’s just that simple – because the longer you wait, the more out-of-reach all properties become (remember: a rising tide lifts all boats).
You’ll get to your end goal faster by making more moves (physically and metaphorically) than waiting on the sidelines for all the holes in the proverbial swiss cheese to align (and guess what: everyone else is going to want that same ‘perfect home’ at the same time, too… so the competition will be even tighter).
Take the ego out of your first place. Rome wasn’t built in a day; better to build equity and strategize on ‘trading up’ as your finances permit over time. Let your home grow with your career. Ask your mortgage broker or financial institution on if the mortgage you’re looking at can be transferred to another property without (or, with only minimal) financial penalty. Start to build up equity as quickly as possible. Heck, get creative and consider taking in a tenant to help with monthly costs. Do what you gotta do. Remember, always do something today for which your future self will thank you.
You’re not alone. Together, we can do this.
Once you’re ready to make the move, give me a call. I can introduce you to a team of professionals who will provide all the informed professional knowledge required to complete the transaction properly. I’ll be thrilled to guide the process as you start to build wealth through real estate.
Stop dreaming and start doing. It’s time to execute. Just do it, already.