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Lifestyle Real Estate

Op-ed: Okay, Cupid… find me a home instead

Toronto real estate agent Rizwan Malik is living single

What can be more difficult than finding love in a city like Toronto? A home! I’ve been a Toronto real estate agent for over a decade and a question I am frequently asked is: How do you enter the housing market, especially if you are single? My answer has always been – creatively!

I understand that purchasing your first home in Toronto, whether that be a house or a condo, can be very difficult. The average price for a home in February was $1,334,544 according to the Toronto Regional Real Estate Association. My advice to first-time buyers, especially someone who is single, has always been to save as much as you can and speak to a mortgage specialist.

There are programs available through which you can purchase your first home with as little as 5 to 10 per cent down. This is far more palatable to save than the daunting 20 per cent for a single person living in a city like Toronto. Yes, this program does require mortgage insurance, which can be upwards of $10,000-$15,000 (added to the mortgage amount vs. an immediate out-of-pocket expense). However, sitting out of the market and wasting $30,000 a year in rent trying to save 20 per cent down is not helpful either. It may take you three to four years or more to save that amount, and by this time you will have thrown away $90,000-$120,000 in rent. Not to mention, the property you could have attempted to buy today will likely have appreciated by another $100,000 plus. There is no winning by sitting out.

Additionally, I recommend looking at a property where you can rent a part of it out. Realistically, I am not saying be a landlord or buy a multiplex! But I have seen clients purchase something as small as a one-bedroom plus den and have a friend occupy the den for some supplemental income. Roommates are not the end of the world, especially if they help you meet your real estate goals. Besides, you will also have a live-in wingman/woman. Remember, the key here is to enter the Toronto housing market and not be left behind. You are not looking for your dream home yet, so do not go out looking with a crazy wish list. Have some key things that are crucial – the non-negotiables – but this list needs to be small.

Recently, I’ve been telling young Torontonians that instead of holding out to buy with a significant other, they should chat with their parents first. If the opportunity exists, most parents are typically sitting on tons of equity in their home, which will one day pass down to their children anyways. So why not take some of that equity and offer it to the kids as a down payment today? It will allow their children to enter the housing market, carry good debt (a mortgage vs. credit card debt) and not continue to be priced out of the Toronto real estate market while single. It may also mean fewer drinking nights out on King West with a mortgage payment looming over their heads. It’s truly a win-win!

These are just some of the different ways I help my clients navigate the turbulent real estate market in Toronto. There is no quick fix and finding someone to buy with is not the answer. You can do it and you can do it alone. Knowing the various options that are available is the key. You need to find a way to make it work and not be disheartened by thinking that you need hundreds of thousands of dollars to do it and will never get there. So to recap, as I’ve seen it done many times before, you CAN buy your first home in Toronto as a single individual!

Rizwan Malik is Vice President of Sales at Sotheby’s International Realty Canada and a host on HGTV Canada’s Hot Market.

@nowtoronto

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