The Pioneering Spirit of First Time Buyers

By: Joe Samson

Well, the good news for Canadians is that the housing market seems to be unaffected by the US mortgage crisis. Canadian realty is 'doing its own thing' and enjoying a healthy property market. The bad thing is that the Federation of Canadian Municipalities (FCM) has published a report which claims that most Canadians are being priced out of their own housing market.

The Canadian real estate market has been on the upward swing for the last ten years. We've seen an unprecedented number of home sales, and property appreciation has continued to grow. This is great news for homeowners.

It is not so great for the families who can never quite get their foot on the first rung of the property market ladder. The FCM warns that "finding adequate housing (is) becoming an issue even for the so-called middle class and chronic, systemic homelessness continues in Canada's urban areas."

Is there enough help for prospective first time buyers to become home owners? Help could come in the form of grants and subsidized interest rates from a government funded program.

The FCM has conducted a five year study, involving 22 urban centers across Canada. The results prove that house prices increase faster than wages "even for couples and two parent families."

This kind of information pinpoints how difficult it must be for single parent families and single people to afford their own homes.

In 2003 an 'Energuide' grant was introduced by the federal government. Over 30,000 Canadians used the grants offered on this scheme. Homes could be renovated to become more energy-efficient. Almost a year ago this incentive was cut by the present government who said at the time that they will come up with their own 'made in Canada' energy plans.

When faced with buying a first home, buyers are usually looking on the low end of the market. Most first time buyers will be choosing from older homes - 'old timers'. These properties often need copious amounts of work in the form of renovating and decorating and maybe even large scale repairs.

This is one area where your real estate agent can make suggestions. Real estate agents have years of experience with looking at older houses. They can advise you on building inspectors in the area and are often able to distinguish 'shabby' from 'shot'!

Compared to the apartment that the first time buyers are still renting, older homes can look worn out and uninviting. It may be embarrassing if friends ask whether it's really worth putting all the savings on that 'dump'. Buying that first property is often clouded by personal issues such as pride of ownership, and a fear of living less than luxuriously.

Most rental apartments have free heating and free hot water. Bathrooms may be utilitarian but they are very functional and the repairs are not the worry of the tenant. A dingy bathroom can often be improved very cheaply, but not everyone has the vision to imagine decorating transformations.

With walls all painted white and some inexpensive blinds up at the windows, rooms look livable. Many of the hardware stores offer free night courses or weekend workshops.

For instance, one hardware chain is now offering a workshop in 'renovating your basement'. It is free and there are at least 12 time-frames to choose from. Do it yourself technology has come a long way and now there are so many home fittings that can be 'improved' instead of replaced. Even the interior of baths can be painted these days.

Tiles can also be repainted and laminate counter tops can be re-finished temporarily, until there is more money available. It is very inexpensive to change only the doors on your kitchen cupboards; one company on the Internet starts at around $20 per door. A gallon can of paint is under $50.

Yes, we do need government funding to help start first time buyers onto the property ladder, and FCM has called on the federal government to renew their commitment to a housing program.

However, realtors can help promote self-confidence in first time buyers by going through the listing with them. Many prospective buyers are keen to learn; some of the easy projects just take labor hours and only need explaining. We also need to show first time buyers that the sacrifice is worth it. To take that first leap, prospective buyers just need to have self-confidence and get some of the old pioneering spirit in them.

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