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The 2020 Millennial Home Buyer Report shows how this generation is not really any different from previous ones when it comes to homeownership goals:
“The majority of millennials not only want to own a home, but 84% of millennials in 2019 considered it a major part of the Canadian Dream.”
Unfortunately, the myths surrounding the barriers to homeownership – especially those related to down payments and FICO® scores – might be keeping many buyers out of the arena. The piece also reveals:
“Millennials have to navigate a lot of obstacles to be able to own a home. According to our 2020 survey, saving for a down payment is the biggest barrier for 50% of millennials.”
Millennial or not, unpacking two of the biggest myths that may be standing in the way of homeownership among all generations is a great place to start the debunking process.
Many buyers often overestimate what they need to qualify for a home loan. According to the same article:
“A down payment of 20% for a home of that price [$210,000] would be about $42,000; only about 30% of the millennials in our survey have enough in savings to cover that, not to mention the additional closing costs.”
While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a bit of research, many renters may be able to enter the housing market sooner than they ever imagined.
In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing they need a credit score of 780 or higher.
The Origination Insight Report, which focuses on recently closed (approved) loans, shows the truth is, over 50% of approved loans were granted with a FICO® score below 750 (see graph below):Even today, many of the myths of the homebuying process are unfortunately keeping plenty of motivated buyers on the sidelines. In reality, it really doesn’t have to be that way.
If you’re thinking of buying a home, you may have more options than you think. Let’s connect to answer your questions and help you determine your next steps.
The travel industry is one of the major sectors that’s been hit extremely hard by the COVID-19 pandemic. Today, it’s hard to know how long it will take for summer travelers to be back in action and for the industry to fully recover. Homeowners who rent their secondary properties on their own or through programs like Airbnb, which has over 660,000 listings in the U.S. alone, have been impacted in this challenging time. Some of these homeowners are considering selling their vacation homes, and understandably so.
A recent CNN article indicated:
“With global travel screeching to a halt during the pandemic, a number of Airbnb hosts are planning to sell their properties…These desperate moves come as hosts face the possibility of losing thousands of dollars a month in canceled bookings while bills, maintenance costs, and mortgage payments pile up.”
If you’re one of the property owners in this position, you too may be feeling the pain of decreased travel, especially as we prepare for the typical busy summer vacation season. A recent survey notes that 48% of Americans have already canceled summer travel plans due to the current health crisis. In addition, 36% indicated they don’t have vacation plans, and only 16% said they did not cancel their summer travel.
The same survey also asked, “How long will you wait before traveling again?” Not surprisingly, only 29% of respondents are planning to travel within the next 6 months. That means 71% are putting their plans on hold for at least 6 months, or are still unsure about future travel. That can continue to add to the significant income loss that many property renters felt this spring.If you’re considering selling your rental property, know that there are two key factors indicating that selling your vacation home now may be your best move as a homeowner.
The inventory of overall homes for sale is well below the demand from potential buyers, so many eyes may be searching for a home like yours. According to the National Association of Realtors (NAR), total housing inventory, meaning homes available to purchase, is down 19.7% from one year ago (see graph below):Inventory across the country continues to be a challenge, with only a 4.1-month supply of listings available at the current sales pace. For a balanced market, where there are enough homes available for interested buyers to purchase, that number would need to bump up to a 6-month supply. This means we don’t have enough inventory for the number of buyers looking for homes, so selling in this scenario is ideal. Buyers are looking now, and some vacation homes make a great primary residence or second home for those eager to escape from more populated urban areas.
The lack of inventory is also keeping homes from depreciating in value. Today, prices are holding strong and experts forecast home price appreciation to continue throughout this year. Selling your home while prices are holding steady is a sound business move. You’ll likely have equity you’ve earned working for you as well. If your home has been vacant for the past few months, the forced savings you have built in your equity may help balance out possible rental income loss due to the slowdown in the travel industry.
We don’t know exactly when heightened summer travel will return or what it will look like when it does. If you’re considering selling your vacation home, let’s connect today to determine your options in the current market.
You may not notice it immediately, but the sun’s path across the sky begins to shorten everyday, in terms of both height and duration. As a result, your home’s exposure to daylight will not only diminish slowly until winter, but the trajectory of direct sunlight into your home will also change, as the angle of the sun changes almost imperceptibly from day to day.
This is a golden opportunity to make note of how sunlight strikes your home’s interior and exterior garden or balcony, so you can compare it to the lighting in the coming seasons. This can help you decide where to place various furnishings, plants and decor to make the most of your living spaces.
For example, drapery can help suppress sunlight exposure in the summer, while interior mirrors can help maximize it in the winter. Tracking and adjusting your space for sunlight year-round could help you save energy by reducing your need for air conditioning, heating, and/or lighting.
Furthermore, you could help prevent fabric-covered furnishings, carpets and hanging artwork from fading over time simply by rearranging them twice a year.
*Morris Marketing*
Click Here to Join the Club and Become a Nosey Neighbour
As you’ve probably noticed, credit card companies regularly offer bonuses to get you to apply for their cards. For example, one such card company offers opportunities to buy tickets to concerts and other events ahead of everyone else. It’s their “front of the line” service.
When you’re searching for a new home, wouldn’t it be great if you could get to the front of the line on desirable properties – before other buyers get the chance?
Well, in a way, you can.
The first thing you need to do is create a profile for the specific type of home you’re looking to buy. That profile will need to include the basics, such as type of home (e.g. detached), size and rooms (e.g. 2000-2,500 sq. ft., 3 bedrooms, 2 baths), and your target neighbourhoods. You’ll also want to add any additional features you’re looking for, such as a finished basement or in-ground pool.
Next, you want to work with a real estate agent like me who understands the local market and can arrange for you to receive immediate alerts for newly listed homes that meet your criteria. It’s not uncommon for homes to become available for sale before the listing information gets published on the MLS. In fact, in some circumstances, it could take a couple of days before such listings become available online.
So, if you get an alert soon after a listing comes on the market, you get a head-start on seeing that home and making an offer. And, you don’t need to apply for a special credit card to make that happen!
Just give me a call. I can help you find the right home for you.
(416) 779-8732
Click Here to Join the Club and Become a Nosey Neighbour
*Morris Marketing*
Whether you’re painting your home to prepare it for sale, or simply to make it more attractive for your own enjoyment, choosing the right colour is important. A colour isn’t just a matter of taste, it’s also, to a large extent, about the emotions it elicits.
If you’re painting your foyer, for example, you may want it to seem bright and welcoming. So, light orange tones might be appropriate as that colour is often interpreted as friendly.
In your living room, you may want to create an atmosphere of comfort and relaxation. In that case, consider shades of greens or grays as those colours communicate peacefulness and calm. Want the rec room to look vibrant and energetic? Purples and reds communicate those emotions.
Where do you find more information about colour psychology? There are plenty of charts available online. Just Google “colour psychology charts”. They can help you select just the right colour to convey the feeling you want for a room. Of course, if all else fails, you can’t go wrong with soft beiges, especially when selling your home. Neutral colours are often interpreted as reliable.
Have questions about painting and other fix-ups that will help sell your home faster and for the best price? Call me today. (416) 779-8732
*Morris Marketing*
Today’s portable technology has created a “work from anywhere” mentality, which has made a home office seem unnecessary to aspiring business people and serious students. But health and efficiency experts agree that people who want to be most effective while working from home should consider how their environment can influence productivity. That’s why setting up a designated workspace is so essential.
For example, avoiding family traffic areas is a must. If you can’t dedicate a room as an office, at least create a space you can isolate, even if it means simply converting a sizable closet into an alcove with a small desk.
Maintaining a functional workspace is also important. Ensure you have good lighting, an adequately clear desktop, an ergonomic chair, and handy storage for files and support materials. Once you have the essentials, spend a little time embellishing your area with creature comforts that help you relax, such as photos of loved ones, a vacation postcard, art and amusement pieces.
If you have a big enough space and budget, consider an invigorating colour scheme, and functional furnishings such as an adjustable-height desk that lets you sit or stand, a meeting table, and a guest chair or lounger that complements your décor.
*Morris Marketing*
Whether you are sprucing up your property for resale, or simply making the most of your real estate space, organizing a garage area can be a surprisingly simple way to add to a home’s appeal or functionality. Like any room in the house, the most effective makeover starts with removing clutter and getting organized.
First, determine the minimum floor area necessary to access your vehicle(s) and power equipment. This will allow you to determine the space available for a work bench, boot rack, tool shelving, storage bins or cabinets.
Next, look for underutilized wall space to install pegboards and broom holders, as well as overhead space for hanging bicycles, rafter racks for scrap lumber or paneling, or suspended netting for lighter items such as tarps, patio cushions, rain gear and sporting goods. If you have exposed stud walls, you can install horizontal blocks to create storage ledges between the verticals.
Alternatively, you can span the stud gaps with cable or wood strips and stand taller objects between them. You can also nail empty plastic jar lids (top side up) to the underside of any accessible ledge, cabinet or shelf, then twist the clear jars on for storing loose screws, nails and various hardware accessories.
*Morris Marketing*
As the bulk of the baby-boomers enter their senior years, many will be close to outright ownership of their homes. This could provide them with an opportunity to free up funds or provide equity to pursue personal interests.
One such pursuit might be to modernize their home and make it more functional and convenient, either to enhance its resale value before downsizing, or to accommodate life changes such as mobility challenges in later years. For example, a stair-lift installation and wheelchair access at doorways and under countertops can extend the duration of independent living for seniors who want to remain at home as they become more elderly.
Another interest might be to maintain ownership of the family home for the next generation. In such cases, if the residence is large enough, creating a separate living quarter could provide an economical solution for both the older and younger family members. Creating what is often referred to as a “granny flat”, typically requires municipal approval, although some municipalities tend to be flexible when it comes to accommodating family members.
Of course, downsizing remains the logical choice for many retirees who are ready to make a lifestyle change that reduces their living space.
*Morris Marketing*
One of the many pleasures of being a condo owner is having the freedom to evolve your home environment to reflect your changing lifestyle. While sometimes this entails a large makeover project, don’t underestimate how gratifying a simple project can be as you move toward a more comfortable unit.
For example, you don’t need to repaint an entire room to change its overall appearance. Simply adding a contrasting colour to its wood trim can create a significant visual impact. You might also want to consider installing removable wallpaper on a wall opposite a room’s doorway to create a dramatic focal point or adding a complementary colour on the back of a
bookshelf or hutch to add interest.
Another visually impressive “quick fix” could include painting the panels of your kitchen cabinet doors and drawer fronts, as well as changing the hinges, handles and pulls.
Finally, installing a ceiling fan with an overhead light can change the look of any room, as well as make it more comfortable and energy efficient.
*Morris Marketing*
Brampton Real Estate Talk 