Many people decide to buy their first property in their late 20s or early 30s, and if they have not started a family by then, they usually go with a studio or one-bedroom condo that covers their needs perfectly at the time of buying. However, most of these buyers sell their first condo five-seven years later as their life takes another turn and their needs change. Some homeowners are perfectly fine with that but others regret having had bought a property they knew they wouldn’t stay in for the rest of their life as they have to take on a new mortgage and move again. Some buyers simply wish they have had skipped their temporary home and moved directly onto buying the type of home they would end up buying anyway just at some later point, i.e., a home that covers their future needs.
Here are some valid points that support this theory.
First of all, Calgary buyers have the advantage that they live in Calgary, a place where many great homes are offered at great affordable prices. This means that buyers can afford more square footage here than in some other parts of Canada (like the GTA), which enables them to look for a bigger home right away that will eventually serve them well in the future, too.
Another advantage for one-time homebuyers is that they won’t have to pay thousands of dollars for legal fees and closing costs twice! They also don’t have to go through the stressful buying process two times in less than ten years. Also, remember that it takes years to break even when buying real state considering all the costs involved. Why bother more than once?
One of the best things is that capital gains on your primary residence are typically tax-free. This means that if you sell the home sometime later in life (when the kids move out and you are ready to downsize), you will be able to keep the extra profit to yourself. Homes appreciate over time, and a studio or one-bedroom won’t make you as much in five years as a bigger home in 10+ years. The market looks promising, but of course, if the market declines for some reason in the future, you will be at a bigger loss.
Of course, if you have no idea how your life is going to look like in the next 5 or 10 years or if you are even going to stay in the city, then maybe, you are not ready to buy your long-term home yet. You will need to be able to predict whether you are going to get married, have kids and how many and even where your career is heading to be able to make that judgment call.
In order to benefit from directly buying your home for life, you need to be sure that:
- you can financially take it upon you- qualifying for a mortgage big enough to cover your dream home
- it will cover all your needs even if/when you start a family (size, proximity to major amenities, close to parks and schools, etc.)
- the home will be in line with your lifestyle even in 10+ years