A new year means it’s time to take a closer look at your financial goals. For many, homeownership is at the top of the list.
In major metropolitan cities like Toronto, real estate is a competitive market that can be challenging for first-time homeowners to break into — but with thoughtful budgeting and the help of a trusted midtown Toronto brokerage, owning a home can easily become a reality. If you’ve been thinking of making your first purchase, you’re not alone. Let’s look at some practical steps you can take to own your own piece of real estate in 2024.
1. Understand Your Budget
Before making an offer on a home, you need to understand your budget and purchasing capabilities clearly. This could mean speaking with a financial advisor to review your current credit score and standing or creating your own budget sheet and going through your savings and investments.
Understanding where you stand financially ensures you’re asking for a realistic loan and rate and allows your future real estate agent to find properties that fit your budget.
2. Explore Government Programs and Incentives
When it comes to being a first-time homeowner in Toronto, Canada, there are often programs or incentives that are available through the local or federal government. Research your area’s different grants, tax credits, or loan options. These incentives can help propel you further and get you one step closer to owning a home in 2024.
3. Automate Your Savings
Proper budgeting is key when saving up for a significant purchase such as a home, but it’s not always easy. Setting up automatic transfers after you receive your paycheck gives you a clear picture of where your money’s going, and you’re not tempted to spend that money otherwise.
4. Consider High-Yield Savings Accounts or Investments
There are many options at your disposal when it comes to saving for major purchases. You can access a traditional savings account, which typically offers a more conservative return, but high-yield savings accounts are also available. These types of accounts are beneficial for short-term investment goals and often provide a larger rate of return.
5. Educate Yourself on Market Trends
Real estate markets, no matter where you live, will fluctuate regularly. Try to do as much research as possible before speaking with a real estate agent so that you’re equipped with basic industry insight and can ask insightful questions. Conducting your own research can involve anything from attending a local real estate seminar or speaking engagements to reading online industry reports.
The more you can educate yourself on the current industry, the more confident you’ll feel working with your realtor to make this major purchase and investment.
6. Find a Real Estate Agent You Can Trust
Working with a real estate agent is a must during this process, but the right agent matters just as much as hiring one in the first place. When interviewing agents, whether you’re in Toronto or anywhere in North America, ask the questions that are important to you — including their communication styles, their experience in the market, their success rates, or how they navigate challenging real estate markets for their clients.
Owning a home in 2024 may look different than in decades past, but that doesn’t mean it’s not an achievable goal.
By setting clear goals, budgeting properly, exploring incentives, automating savings, and staying informed about market trends, you’re taking the steps you need to reach this important milestone.
