In today’s world, where the market is at an all-time high, it’s not surprising to see younger would-be-homeowners asking if buying a house first is even a good investment. After all, it also goes against the general progress of one’s finance, wherein the first step to adulthood is taken fresh out of college. The notion begins with landing your first job, then moving up to your first, second, or third rental, marriage, and then leading up to a starter home where you can expand your family.

There is, however, a benefit to skipping the traditional milestones. This means you’d have to make the biggest financial decision in your life decades before you even choose to have kids. While that will take years of hard work before your dream home can be built from the ground up, it can also be a better way to save your money for investments that are worth spending on as you work your way through it. After all, between now and one day, it will still cost you money. Of course, it all depends on your financial situation, and whether or not you can also afford to make certain sacrifices in your current life for your future. Circumstances may force people to rely on renting, but for those who have the chance to wait, here are reasons why it’s worth it:

House value rises through the years

Millennials grew up during the housing bust in 2008, and while the housing market is back on its feet and thriving, many millennials remain unwilling to ditch renting when comparing the amount of money they’ll have to save to own a house. However, depending on the land, location, physical structure, and the state of the economy in the later years, your dream house may increase its appreciation over time and may be further from your budget down the road. That’s why it’s best to determine what your goals are in five years – are you planning to live in this dream home forever, is this where you want to expand your family, is the location convenient and suitable to your needs, is work available for you here? If these are all checked with a resounding yes, it may be better to wait a few years to snag a cheaper deal for your prospective home.

The gains on your primary home are tax-free

One significant benefit of residing in Canada is the fact that primary homes are offered as tax-free. That means that your equity rises in value as it grows without you having to pay capital gains on it, making it truly a deal of a lifetime in the current market.

But what are the factors you need to consider before deciding to buy your second home first?

It all depends on your current financial situation, and if you have a sound vision of where your life will be in at least five years. You have to be at a point where you’re sure your salary will increase, and if your lifestyle can afford the time, money, and effort it takes to save up a sum for the most significant investment everyone makes in their lives. 

If you’re looking to buy real estate in Toronto, get in touch with us today – we’re happy to help you find a property that suits you.