With the market in Markham and the GTA reaching a fever pitch, it may be a scary proposition to buy a home. But, as I told you last week, now is the time to buy, even if you are a single person. You truly don’t have to wait for Mr. or Mrs. Right to start achieving your dreams of buying a home. A recent survey found that 25% of people, who bought a home from 2012 – 2014, did so without a partner. But, there are a few considerations that you should think about before diving into the world of real estate without a partner.
Are you confident?
Buying a home alone takes some confidence in you. Are you ready to pay bills on your own, knowing that don’t have help from anyone else if the going gets tough? Are you also ready for all of the things that need to be done to a home – from small maintenance issues, to larger repair issues? Do you have enough savings to get you through a few mortgage payments should you lose your job? Feeling confident in your financial, physical and emotional status is the most important factor to consider when buying a home on your own.
What’s your backup plan?
While you may feel confident in your decision to purchase a home without a partner, have you truly considered your backup plan? In a partnership, the backup plan may be the other partner. In singledom, the backup plan needs to be savings in the bank. While you may feel tapped out with paying your down payment, closing and moving costs, you should also have some funds in the bank right from the start, because anything can happen. Depending on the type of job you are in, how easy it is to get another job, what kind of insurance you have for accidents and disability, will all be factors when deciding just how much to save for a backup.
Many new homeowners consider renting out a portion of their home to get rental income, which will help pay the mortgage. Because you are a single, you may have extra rooms or a basement to rent out. But, you should be prepared to know the laws regarding landlords and tenants, roommates, as well as get a background check and an extensive interview with anyone who is going to live with you.
While you can only buy what you can afford, be cautious about the neighbourhood you buy in. The general adage for home buying is to buy the worst house in the best neighbourhood. Your values will grow quicker, the neighbourhood will likely be safer and your home will be worth more in the long run. Of course, you don’t want to buy a fixer-upper unless you really know what you are doing and have budgeted for the costs of renovations (with a contingency).
If you need any help buying your first Markham home as a single person, I’m the person to talk to. Let me know how I can help.