If you weren’t already aware, my home in Vancouver is a 900 square foot Laneway Home, pictured in the blog. It has 3 bedrooms, 2 bathrooms, and an open concept living room/dining room. With the market in Vancouver being so tight right now, home buyers need to consider these types of homes as well as townhomes and condos instead of large family homes. The size of this home is ALL I need in Vancouver and you would be surprised at how spacious it really feels. Even though I don’t own this home, I would consider buying it or buying this type of home. There are so many different factors that you need to consider when buying your first home, especially in the big cities. I’m sharing with you some tips and information that I have found useful when buying a home.
5 Tips For Buying a house on a budget:
1. Consider Moving Outside Preferred Area – This will generally allow you to have more square footage at a lower price. This doesn’t mean you have to be an hour outside of downtown … simply consider looking 15-20 minutes outside your preferred area. Although you might spend 15 minutes more commuting, you’ll save big bucks in the end!!
2. Wait Until You Find What Is Right – The market is tough right now and always changing. If you don’t find anything you LOVE right now, there’s no harm in waiting until you do! Delay the process until you find what you really want so you are happy and your money is well spent, but do be mindful of staying informed and updating your saving strategy as the market changes.
3. Adjust Must-Haves – As much as I want you to LOVE your home, sometimes you might have to adjust your must-haves list to align with your price range. Sometimes you can make sacrifices if the home offers something slightly different than you imagined but still works for your tastes and lifestyle.
4. Budget – Make sure your budget is reasonable for the market and location you are looking at. You have to consider smaller spaces to work within your budget. Budgeting is VERY important for first time home buyers.
5. Mortgage Specialist – Use the mortgage specialists at your local bank to talk to. I used BMO when I was originally considering my options and purchasing my other property, and they offer so much knowledge, support and guidance on mortgages. If you are a first time home buyer or are in the preliminary stages of thinking about buying a home, I suggest doing this as your first step. They will help get you into the home you are into!!! Visit BMO Mortgages(opens in a new tab) for more helpful info.
Some fun facts I found about home buying in Vancouver & Toronto:
- According to a recent millennial home ownership poll by BMO Bank of Montreal(opens in a new tab), first time home buyers in Vancouver and Toronto are more likely than the national average to be considering condos (37% and 41% respectively)!
- 84% would or would at least consider a different size home than they had originally thought to purchase
- 84% also would or would at least consider a move to a different neighbourhood within their desired city, and 60% would consider moving to another city altogether
- 52% of first time home buyers are looking at older homes (52%), and 23% of first time home buyers are considering a fixer-upper
- First time home buyers are expecting to pay more than what was paid in the past: $350k + (nationally), $450k+ (Toronto), $525k+ (Vancouver)
Article By: Jillian Harris