There are few things that will make you feel more ‘adult’ than your very first time. Of course, we’re talking about purchasing your very own slice of the Canadian dream: real estate.
After all, being your own landlord, using your money to pay down your own mortgage (and raise your own investment) rather than someone else’s, and having real estate in your investment portfolio just makes sense.
Actor Will Rogers once said “Don’t wait to buy real estate. Buy real estate and wait.” And it’s true; real estate is a sound investment.
After all, you have to live somewhere, right? So you may as well pay your own mortgage rather than someone else’s.
Get Your Financial Affairs in Order
Before you spend too much time on our website browsing and searching all of the Kelowna real estate listings for sale, get realistic about your finances and budget.
Once you’ve paid down any outstanding debt and have your down payment in order, it’s time to consider how much you can afford to spend.
This is when you need to be realistic and honest with yourself. You might think you can give up your daily Starbucks, eating out at RauDZ, Tokyo, and ordering Skip the Dishes; however, the reality is that you likely don’t want to be living and working just to pay for your home.
Create a budget and include all anticipated costs including mortgage, taxes, insurance, utilities, travel, entertainment, food, your cell phone, Internet, Netflix, Amazon Prime, etc.
It’s important you look at how much you are comfortable spending on your mortgage each month, rather than how much your pre-approval says you can spend.
For instance, you might qualify for a $400,000 mortgage but are you realistically comfortable spending approximately $2000/month on your mortgage alone? (*example based on 5 year fixed mortgage at 3.14% interest – 25 year amortization period).
This is why we always recommend you target your ideal price range to match what you know you can spend, rather than maxing out your pre-approval amount.
Get Your Team in Order
For your first time, it’s important you lean on the experience of others.
Choose a real estate agent and mortgage broker who have plenty of experience navigating the world of first-time buyers. You’ll find they have the patience and knowledge needed to make your experience less stressful.
Want some recommendations? Get in touch with us and we’ll help you out!
We know you’re a wiz online and can calculate mortgage costs, do up your budget, get pre-approval and even find your ideal home; however, it’s ill-advised to go at it alone.
When it comes to real estate, a professional REALTOR® has access to all the available homes, listings coming soon and can even get creative with options you might not be aware of.
Your REALTOR® also knows the current market activity and can help you submit the right offer so you aren’t paying too much.
Get Your Wish List in Order
Don’t swipe right just yet. We all have high expectations for our first time; however, your first home usually isn’t your forever home.
Consider your first home as a launching pad into the fun and exciting world of real estate. Then, let your REALTOR® help you find the right home for you within your budget.
We recommend you look at least a handful of homes within your price range and preferred location before you ‘fall in love’.
And, while the colour of the kitchen countertops is important, you should be looking ahead toward resale, too. After all, any money you can make on this home will help you buy your next dream home, too.
Generally, you should plan to live in your first home for at least five years. This is likely the term of your mortgage and should also provide you with some cushion for your investment.
We get it. Your first time can be scary. You might be nervous. You might not know what to do. Don’t go at it alone. We can help.
At Nyrose & Associates, we understand what it’s like to buy for your first time and we do everything we can to work with you to ensure your first experience in real estate is a great one.
After all, we believe that once you do it once, you’ll want to do it over and over again (hopefully with us!).
Get in touch. We’d love to help.