The real estate market in Canada is still very hot.
According to the Toronto Real Estate Board, average selling price for 2017 in the Greater Toronto Area was $822,681, up 12.7 percent compared with 2016 despite home sales fell 18.3 percent last year compared with 2016.
In addition, the average sale price also jumped another 10 percent in Hamilton to $478,000 on December 2017 compared to November 2017 according to the Realtors’ Association of Hamilton-Burlington.
Moreover, the price for all residential properties in Vancouver in 2017 was $1,050,300, a 15.9 percent jump compared with December 2016 according to the Real Estate Board of Greater Vancouver.
These are the prices that an average Canadian would not be able to afford as the average wage for Canadian employees was just over $51,000 a year as of September 2017. Pursing this further, the new mortgage rules that test all borrowers even the ones with more than twenty percent down payment could force a lot of buyers, especially the first-time home buyers, out of the housing market.
So should first-time home buyers be discouraged? Not really.
There are still affordable housing out there that you do not need at least a $100,000 down payment in order to buy your dream home.
Here are where you could find housing that are priced less than $100,000:
1) Mobile Home Parks
I saw this ad on Realtor and this mobile home is in Mississauga, one of the suburbs in the Greater Toronto Area. If you do not want to pay rent but you do not enough money for down payment, this property could be your option as it is driving distance to downtown Toronto. However, you may want to think about the living conditions inside these mobile home parks.
2) Non-major Cities
There are a lot of affordable housing in remote cities like Fort McMurray, Alberta or Thunder Bay, Ontario.
In this ad on Realtor, this Fort McMurray property is not only cheap, but looks very nice inside. However, you would have to relocate and get a job in the oil industry in order to enjoy this apartment.
Meanwhile, this Thunder Bay house does not look as nice as the apartment in Fort McMurray. Nevertheless, it is a HOUSE and it is very cheap. Again, you would have to relocate to Thunder Bay in order to buy houses at these prices.
3) The “Bad Neighbourhood”
Every metropolitan has “bad neighbourhoods”. In Toronto, Jane and Finch is what people think of as a “bad neighbourhood” and you can find a two bedroom apartment (like the one below) for less than $100,000. Unfortunately, you may have to be aware of your personal safety.
Although the properties above are affordable, they are either not located in where most people want to live or they are not in the perfect neighbourhood. In addition, these properties would not have the same kind of price appreciation as the properties in the major cities.
So here you are. If you want to buy a property now but noticed you do not have enough down payment, what would you do? Please leave your comments below! Catch you on the flip side!