Guelph Real Estate Advice: Decision Making in a Seller's Market
ADVICE FOR FIRST TIME BUYERS
“My advice to first time buyers, whether it’s someone on their own or a couple looking to purchase, is this – get into the market any way you can,” said Smith. “Whether that means buying a one-bedroom condo or a house with an accessory unit to help support the cost of living and price of ownership. I’ve watched fear of downturns and market bubbles hold too many people back year after year.” Smith said that the time you invest in owning a property is much more important than the timing that determines when you buy.
“Don’t overlook the power of time and the impact it has on the amount of money you have invested. Know what you can afford, but try to get into the market. If you can only afford $1,500 a month for housing but the house you want is $3,000 a month, explore purchasing a duplex where a tenant can help make up the difference between what you can afford and what you owe. I wouldn’t use fear as a reason not to get into this market. If you’re unsure exactly how to find this, an excellent agent can help you. Getting into the market is always the biggest and most important step.”
ADVICE FOR BUYERS LOOKING TO UPGRADE TO A BETTER PROPERTY
Hudson has one primary piece of advice for people looking to climb the property ladder through an upgraded purchase. “It’s very important to be patient,” he said. “Don’t feel like you have to settle.”
Smith said that while it’s important to check all the boxes on the things you want in a property, it’s more important to access the elements at the heart of a smart real estate purchase.
“Always buy the things you can’t change,” said Hudson.
“Look for the right lot size, the square footage of the house, a double car garage. Don’t buy a house for the new kitchen or the finished basement. Buy the things you can’t add yourself or that will be too expensive or time consuming to add later. You can’t change the lot size, but you can always change the glass shower, the hardwood flooring or the bar in the basement.”
ADVICE FOR SELLERS LOOKING TO DOWNSIZE
Smith says people looking to downsize are in a tricky situation, because many times such property owners are tempted to get out of the market altogether and instead choose a smaller rental.
That’s not a wise move according to Hudson. “My advice is to try to stay anchored in the market,” he said. “Don’t overlook the importance of one of the best opportunities to build wealth-tax free in home ownership, no matter where you are or in what stage of life you are at.”
ADVICE FOR PEOPLE LOOKING FOR INVESTMENT PROPERTY
In today’s market, buyers are willing to buy any property regardless of whether it can help them generate income.
Smith says the key to buying property for investment purposes is to identify ways the property can be adapted to generate revenue. “For instance, you can buy a house and add a secondary suite,” said Smith. “With Guelph’s new laws you can build carriage houses with top floor apartments.”
“Look at ways you can put capital into your property and create cash flow on your own.”
