Last Updated on May 20, 2021 by MoneyVisual
Even though the U.S. and Canada have dealt with the coronavirus for many months, 2020-21 has still been a good one for the housing market.
Third-quarter estimates revealed a 10 percent increase in home sales for the U.S. They also reported 67 percent of Canadians own their own homes, up almost three percent from the previous quarter.
The results reveal an active housing market that shows no signs of bursting. Unfortunately, it also divulges a high-priced market. It makes it difficult for many people, including first-time home buyers, to consider a purchase.
All is not lost, though. There are ways you can afford a home in 2020-21 and not become a pauper. Here are a few examples.
Quick Possession Homes
In some cases, development companies like Sterling Homes have a glut of new construction properties available at lower costs. These quick possession homes come about when the developer either attempts to finish a project or when a buyer decides to pull out of a deal.
What makes quick possession homes different than other properties is they’re not customizable. The styles, colors, and fixtures were previously picked out. Also, they’re in the middle of construction. So, rather than waiting for 18 months, the home can be ready for your family in or under 10 months.
Look in Older Neighborhoods
A brand-new home will cost you more than an older one. So, unless it’s a quick possession property, you might want to turn your attention to residences in older neighborhoods. It’s here that you should be able to find a home you can afford.
By older homes, we don’t mean those in historic neighborhoods. Houses in these areas can cost more and also tend to have strict rules on renovations and landscaping. In this case, it’s well-established neighborhoods where homes are 25 years old or over.
Properties for sale in these locations are still well-maintained but might start to show wear. If you’re a handyman, you should be able to get a deal on a home that your family will comfortably live in. Still, make sure you get the house inspected prior to purchase so you don’t run into any surprises.
Short Sales and Foreclosures
While they aren’t dirt cheap, homes designated as short sales or foreclosures can be far less expensive than similar properties. Homes released for short sale have either lost their value due to lack of upkeep or need to be quickly purchased. Foreclosures are homes where the previous owner couldn’t pay the mortgage any longer.
How you purchase these properties differs. Short sales are normally through a real estate agent. Foreclosures tend to be placed for sale in auctions. While the short sale has a set value, a foreclosure might end up with a higher price as customers continue to bid for its ownership.
This takes a bit of education, some financing, and a good deal of skill. However, if you are ready to roll your sleeves up, you can afford a home that you will eventually flip. In fact, you may be able to purchase a property for as little as one dollar.
On the downside, the property you decide to flip maybe unlivable for a while. However, if you do a good job, then you can sell the house for a price that covers labor and materials. In turn, you’re able to utilize the proceeds to invest in a new home for your family. Or, if everyone likes the job you did, you can make the house your own.
Don’t make a move in any of these directions without research. While these property types might cost less than similar homes on the market, you don’t want to get robbed.
For instance, you want to guarantee quick possessions in Edmonton, for example, and have the home is inspected before you move in. When it comes to a foreclosed property, you want to take a look for yourself if possible to determine if it’s worth the investment.
Even though property prices continue to climb, you can still afford to buy a home in 2020-21. Take your time to consider your options and ask for the advice of others. It might seem to take forever but you’ll eventually unlock the door to your new home.