October 1st, 2019 | Buyers

Avoiding Home Buyers Regret For Millennials

What do you think are the biggest regrets home buyers have, especially millennials?

First off, it’s natural to have home buyer’s regret, and it’s not just millennials that do. While 44% of all homeowners have regrets, that number jumped to 63% (two thirds) for millennial homeowners (aged 23-38). It’s the highest proportion of any generation and nearly double that of baby boomers!

Although you may think the biggest regret is how much they paid for a home, that’s not the case, there are others things on the list:

These are the 3 Biggest Regrets:

• Not having a bigger down payment to lower mortgage payments (avoiding being house poor)
• Not thinking about the associated costs of home ownership (ongoing maintenance & utilities)
• Not considering “hidden costs” associated with purchasing a home such as Land Transfer Tax, legal fees, title insurance, etc.

Other Regrets:

• A hurried purchase
• Buying a home that quickly became too small, especially once it comes time to family planning
• Traffic related noise
• Buying a “bargain home” and being stuck with too many renovations, which is not only costly but unfamiliar territory for most Buyers
• Not enough natural light – a key factor affecting your overall mood and demeanour
• Commute time – sacrificing location for a bigger home didn’t always work out in the end

The big lesson here is… budget, know your needs vs wants, don’t make a hasty decision!

 

A few other key takeaways:

• Utility costs (heat, hydro & water) – factor in reoccurring monthly expenses into your budget prior to purchasing a property, to get the full picture of your affordability
• Set aside 1-3% of the purchase price every year as a reserve fund for your future home repairs (for example:  roof, furnace, waterproofing (houses) etc.)
• Property taxes – you can’t avoid them – factor in as reoccurring monthly expenses into your budget prior to purchasing a property, to get the full picture of your affordability
• If you are buying a condo – make sure to consider monthly maintenance fees, utilities (typically hydro only) is usually NOT included in your maintenance fee
• Ensure you have a property Buyer Consultation with your Realtor and understand the purchasing process from beginning to end
• Get to know the neighbourhood and commute times prior to purchasing
• Try your best to stay within budget or at least understand the numbers if you have to over – this will ensure you go in eyes wide open
• Be realistic about your current lifestyle, and future family/other planning/endeavours

Are you ready to jump into your new home with no regrets?