Wednesday, January 21, 2015

How to Afford to Buy a Home in Vancouver

Vancouver's housing prices have hit another new milestone, it is now ranked more unaffordable than New York and London, ranked 2nd to Hong Kong. This ranking is based on income and housing prices as per the 11th Annual Demographia International Housing Affordability Survey for 2015.

Owning your own home is within reach! What can you do today to get on the property ladder?

Be creative and plan. There are different ways to buy a home, you could partner up with friends, or another couple and buy a house that has two suites, this will allow you to use more income to qualify for the mortgage and you split the costs associated with owning the home, including the down payment. Build equity in the home, then take the next step.

Do we need to modify our expectations? You can expect to buy a home, but expecting to own a home on the west side of Vancouver or in West Vancouver might not be a realistic first step. I have a lot of clients who call me and the first thing they say to me is "I don't know if I can qualify" or "I don't think this is possible", I end up showing my clients what is possible, clients who are self employed, who make little money on paper, but I have helped them qualify for million dollars homes based on rental income of the properties and unique programs offered by the lenders I work with. I have worked with young couples who have got married, had a baby and purchased their first home in one year, they were regular people, regular careers, such as administrative assistants. More is possible, your expectations need to be realistic and you can figure out options and make a plan if owning a home is a goal of yours.

Advice for people who are renting who want to own a home or a condo, what should they do?
Look outside of Vancouver's downtown core. In Burnaby you can get a 1000 sq ft, 2 bedroom, concrete building condo for in the low $200's.

On January 28th, Leading Ladies will be talking about tax tips, RRSPs, and goal setting. If you want to own real estate it has to be a plan, you have to plan to ensure your credit is good, with history, and the minimum requirements that the lenders require. You also need to budget, reconcile your cash flow monthly, spend less on shopping, groceries and eating out potentially and budget to save towards a down payment. You would be surprised how much you can save within a year or two!

Watch the segment we did on CTV Morning Live today to learn more.