What to know
- A real-estate agent says many first-time buyers delay purchasing because they are searching for a “perfect” forever home.
- The expert recommends prioritizing affordability, location potential, and “good bones” over cosmetic features when buying a first property.
- Buyers can build equity over time by purchasing within their budget and later upgrading to a dream home.
- Alternative strategies like co-ownership and buying rental properties outside the GTA can help young buyers enter the market sooner.
Deciding to buy a home is often one of the most important financial decisions someone can make, especially with today’s prices.
However, feeling pressured by the weight of this decision often keeps many buyers from taking advantage of opportunities to build equity.
Stephanie Wilkins, a real-estate agent with eXp Realty Brokerage, says a home can be an incredible opportunity to build long-term wealth. A home is more than a place to live, it can be an investment for the future, as properties can become appreciated over time and sold for profit.
“A lot of first-time homebuyers think their first home has to be their forever home, and that’s the mindset that keeps people stuck renting. They don’t look at the jumping blocks to that forever home,” she said.
According to the realtor, a lot of buyers have “champagne taste” while they actually are limited to a “beer budget,” meaning they get caught up in searching for the “perfect” home, focusing on the ideal location, a big kitchen aisle, and outstanding layout, despite being on a limited budget.
When that happens, many may actually postpone their purchase, hoping to one day afford this perfect home.
Although this might seem reasonable at first, a lot of buyers in fact end up missing their entry point to the market, and postponing an opportunity to build long-term wealth through real estate.
“The goal is to just get your foot in the door, because…if we look at real estate, in the 80s, 90s, we were looking at prices that were in the low $200,000 or even lower than that, to where it is now,” she said.
“Over time, real estate does go up. History is proven. So, the best time to purchase was five years ago. The second best time is today.”
Depending on the buyer’s goals, they might want to focus on first acquiring a property within their budget, which they can later sell and invest the profits into their ideal home.
For those that are now interested in taking that first step, here’s a guide of what to consider when investing in real estate to create equity.
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What first time buyers may need to stop obsessing over
In order to build long-term wealth, buyers might need to make choices when it comes to what they can have in their first home.
Mainly, Wilkins recommends buyers try to get past surface-level or cosmetic wishes, and expand their vision for the home. Your first-home might not have a world-class bathroom, a walk-in closet, or a waterfall shower, but that doesn’t mean it is a bad investment.
“Some people have the eye for it, some don’t. I can go into a home and see the space and be like, ‘This home’s gonna be gorgeous,’ she said.
“There’s going to be such a huge sense of pride with owning and in having something that is your own. Over time, you can save money, and you can fix these other things,” she said.
“You can always get a new backsplash, you can always get new flooring, or whatever. You can do things over time.”
What buyers should never ignore before purchasing
While buyers should manage their expectations and get past minor details, there are also things buyers do need to have in mind when visiting properties to avoid making an investment that could be a money drainer.
Wilkins says buyers should focus on properties that have “good bones.”
When it comes to freestanding houses, these bones literally mean the basic structure of the home, including its foundation, roof, electrical system, and furnace. Meanwhile in apartment units, these mainly include any additional costs associated with the property, including condo and maintenance fees or insurance costs.
“You don’t want something that [is] what I would call a money drainer, where there’s gonna be problems every single month. You don’t want it to suck your income every single month,” she said.
“We want to look past the surface, like, is this a good investment location wise? How is it for my budget? And am I going to be house poor every month because of the condo fees?”
Another important thing to keep in mind when trying to build equity is location.
While moving away from the GTA might often mean cheaper mortgage, Wilkins advises buyers to focus on areas that have potential for development or development plans already underway.
If the area where the home is located becomes more attractive in the future, the property itself might also become more valuable in the future, offering more opportunities for resale and profit.
“The first thing I would say for people is to look at location over luxury… Thinking about subway systems and other highways and schools, and so forth, zones that you know will actually help the area appreciate over time,” she said.
“I call it double dipping. Whenever you buy a property, you want to be able to account that that property is going to go up in value over time, so it’s in an area that’s appreciating, it’s not in an area that’s slow growing.”
How Toronto buyers are trying to break into the market
As mentioned by Wilkins, property prices historically grow over time, and while this represents an opportunity to build wealth, it can in fact be discouraging to see home prices going up while the cost of living also soars across the country.
While in 2000 the average price of a home in Toronto was $244,653, in 2025, it reached $1,067,861, according to the Toronto Region Real Estate Board.
Looking at these numbers might make young people feel as if buying a home is unattainable in today’s market. However, Wilkins guarantees it’s definitely possible.
“I see it every day, and I help people every day with this challenge,” she said.
For those who are wondering how to get there, Wilkins shared a few useful tips.
Firstly, the realtor pointed out that buyers don’t necessarily need to live in their first home.
If the home you can afford is not located in an area you currently want to live in, or if the home itself is not up to your current lifestyle, there’s always the option of renting it out.
“Maybe you can only afford in Oshawa, but you don’t want to live in Oshawa, you want to live in the city. So, get something in Oshawa and rent it out, build equity over time,” she said.
“This is exactly how I got into the market, and then after a few years I was like, ‘Okay, my house has gone up, I’ve been making money off of my house every month, I’m gonna sell it,’ and now I actually have enough money to move into the city.”
Another successful strategy Wilkins has seen recently is co-ownership.
Although it is more common to hear about romantic partners often choosing to own a home together, the realtor encourages everyone to think outside the box and consider sharing a mortgage as a first step towards ownership.
According to the realtor, a lot of young buyers are now teaming up with friends and family members in order to afford buying. While this might mean having to live with a roommate for a while, it is still a way to move quicker into the market.
“People need to also shift their mindset that you’re not a one-man show, and to own you don’t have to have a partner or have the means to do it by yourself…That’s another way to look at things.”
Overall, Wilkins recommends that first-time buyers keep an open mind, and consider moving into the market as earlier as possible because the earlier they can make their first move, the earlier they can start building wealth.
Oftentimes, she says many people think they might not qualify for a mortgage, when they actually could if they just managed their expectations and relied on professional help from realtors and mortgage brokers.
“If you’ve got a little bit of money saved up, and you’ve got great income, you have a steady job, I would say to people to just kind of look at what’s possible for their situation,” she said. “Even if it’s not right now, at least you can…work towards that goal.”
