WHO ARE CANADIAN HOME BUYERS AND WHAT TYPE OF REAL ESTATE ARE THEY LOOKING TO PURCHASE?
Canadian home buyers come in many different forms, different ages, different family dynamics, different budgets and different needs, and are looking to purchase various forms of real estate in Canada. Below are many real estate options to choose from.
First time home buyers are typically millennial young professionals who have been saving their hard earned money for a few years or longer via TFSA (Tax Free Savings Account), RRSP (Registered Retirement Savings Plan) investing in the stock market…or borrowing from family. Typically first time home buyers start off in a small downtown condo and often purchase a pre-construction condos, this way they have a few years to save for a larger down payment and build more financial stability. It is extremely important to ensure that you have an experienced and knowledgeable Toronto real estate agent that understands your needs, wants and financial budget. First time home buyers are more sophisticated than ever, they know that investing in Toronto real estate is a huge step towards building equity over time – real estate can increase your net worth substantially in the long run in particular in high demand areas as Toronto and the Greater Toronto Area. Believe it or not, the Toronto real estate market is still considered undervalues…so don’t wait too long!
Starter Home Upgrade
Growing families that have outgrown their urban condos start to look at the Toronto suburbs, in particular during our current climate with work from home policies, families are looking for larger homes, i.e. townhomes or detached homes in the outskirts of Toronto. Some very popular suburbs of Toronto are Oakville, Milton, Richmond Hill, Markham and Mississauga just to mention a few. Frankly the Greater Toronto Area has so many fabulous neighbourhoods, it often becomes difficult to decide on the location, in particular for families that are relocating to Toronto from abroad. When purchasing your 2nd home, buyers typically have a much larger down payment due to the rewards of an appreciation in their first home, hence a lot more equity to work with.
Well before you know it, the children have left the coupe, your home becomes too much work, you want to simplify your life and reduce your expenses, then downsizing appears to be the best solution. Like first time home buyers, people that are downsizing into smaller real estate spaces typically have as many questions as first time home buyers because they have been out of the Toronto real estate market for decades and the right decisions need to be made and not in haste. For most people their home is their largest asset and is a huge chunk of their retirement money. A professional licensed Toronto realtor can explain how the buying and selling process has changed and prepare them for the costs of selling their home…no one wants any surprises!
Real Estate Investors
Many that are looking for long term growth turn to Real Estate Investing in Toronto. Others that are looking for Real Estate Investing cash flow turn to the outskirts as prices are much lower so the cash flow is quite often instant depending on your deposit, but the appreciation for your real estate investment is typically slower in comparison to major cosmopolitan city centre hubs.
Most 3rd and 4th time home buyers are typically in their 40’s and 50’s and they are starting to think of what their retirement will look like. Several then diversify their investment portfolios and many turn to real estate, as history has proven it can provide a healthy nest egg for retirement.
The bottom line is speak to a professional, positive, honest and experienced licensed Realtor before you make any real estate decisions. Let’s face it buying real estate is most people’s largest investment that they will make.
Call us at MAC Real Estate Services Inc. Brokerage, www.macgrouprealty.com a division of THE MAC Group.
The MAC Group offers also offers short and long term fully furnished rental suites that are sure to make relocating to Toronto as seamless as possible for you, visit us at www.macsuites.ca. In addition to helping you find the right short term furnished apartment in Toronto or across Canada we can facilitate a smooth relocation if you’re moving to Toronto through MAC Relocation Solutions, www.macgrouprealty.com. Contact us to learn more!