Stop the Press! Millennials are finding it a stretch to buy homes in the Neighborhoods where they grew up! Mississauga house prices have hit record high increases. First time home buyers are the most adversely affected by this huge price spike, many are the Millennials, aged between 16-35 and in prime family rearing years. Landing a home suitable for their family needs in Mississauga is getting to be a challenge. Read on for Five Helpful Tips for First Time Home Buyers – the Millennials .
Toronto Real Estate board statistics reveal the average sale price for a semi-detached in Mississauga was $624,000 in August 2016. It’s an increase of $145,000 in the last two years – that’s a whopping 27% more money home buyers have to finance on purchases. Simply put – young Canadian families can’t save that fast!
The Five Helpful tips for First Time Home Buyers in this hot Mississauga real estate market. Help for personal finances of the Millennial Home Buyers.
1.Take it back from the Bank and reduce high interest debt first such as Credit Cards and Student loans. Consolidate or refinance into a lower interest rate loan. Some credit cards charge as a high as 21% on outstanding balances
2. First Time Home Buyer Program The three Government programs to help. Apply up to $25000 of RRSP funds towards a down payment. First time home buyers tax credit will pay up to $5000 on your home purchase . Ontario Land Transfer tax rebates of up to $2000.
3. Pay yourself first – a term phrased by the Wealthy Barber – get control of personal finances and reduce impulsive spending habits. Setup an monthly auto transfer on your bank account. Save for your first home in a self directed Tax Free Saving account TFSA.
4. Think like an Investor – You do not have to carry the entire mortgage on your own. Collect rent by buying an income property with a legal accessory unit. It does not have to be forever and the right tenant can help pay your mortgage and quickly build equity in Real Estate.
5. Present a business case – every prudent financial decision starts with a plan. Create a goal on how to buy a home. Meet with your mortgage broker and get pre-qualified for a mortgage. Start a savings strategy. Why not ask parents to tap a home equity line of credit (HELOC) on their principle residence and invest in you? Many Baby boomers are mortgage free – make that unused equity work with an interest only loan.
Bonus Tip! – Get educated attend our Home Buying Class – <Register here> You’ll learn up to date home buying tips and strategies and we will answer questions you did not even know to ask.
I know the Millennials. I’m a Dad and part of a family with five of them. The year was 1994 and many Saturday afternoons were spent with a bunch of the neighborhood kids trying to crack Donkey Kong attempting to get the stolen hoard of bananas.
Many would be Millennial home owners find themselves now caught between a rock and a hard place. Relegated to neighborhoods far from work and schools or living at home with parents and saving up for a down payment – for some a visit from the stork is delayed! The key for many is getting control of personal finances.
Recent clients of mine , know the challenges. Millennials in their 30’s renting with a small family. Homes they could afford in January became priced higher and higher stretching their budget by July.It took several attempts with competing offers before they they finally bought their new home – a Condo townhouse. Happy and Buyer weary.
Call me if you have any Real Estate questions. I hope you found the article -Five Helpful Tips for First Time Home Buyers insightful. That’s it for now! I’m standing by to be of assistance. Join us for our next Mississauga Home Buying Class. This seminar is useful whether you are a home owner, a first time home buyer or interested in residential investment properties. You’ll learn up to date home buying tips and strategies and we will answer questions you did not even know to ask.
Scott Brubacher Real Estate Broker
Royal LePage Meadowtowne Realty Brokerage
6948 Financial Drive Mississauga Ontario
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