5 Creative Ways To Get Into The Market

5 Creative Ways To Get Into The Market

Do you want to purchase a property but need some help on the financial side of things?  I’m Meegan Dennie, a real estate agent in Toronto, Ontario Canada and in this video, I’m going to give you some creative options and real life examples that might help you get into the market sooner than you thought. 

#1 - purchase with a friend and or family member - I don’t mean that you have to live in the same space.  Find a duplex or a home that has a separate entrance for the 2nd storey and a separate entrance for the main floor.  You may even be able to rent out the basement as a third unit. 

This is a great way to get into a detached house which is where you have the most potential to have the biggest return on your investment.   You get to split the down payment and the mortgage costs but still have that separation from the other person.  There are plenty of these homes in really great neighbourhoods throughout Toronto.   I know of 2 sisters that purchased a beautiful Victorian in Leslieville with their partners and they turned the house into 2 units.  One couple had the 2nd storey and the other had the main level.  Another example, A colleague of mine just had a triplex listings on Davenport and the buyers were a grandmother and her granddaughter who were intending to live in separate units and rent the other unit out, which again will help with the mortgage. 

#2 - Purchase an investment property outside of the city.  Many people start out with an investment property and end up renting it out to cover the mortgage and build equity.  I have a couple of clients who have invested in detached houses in Oshawa, Hamilton, Windsor or even as far as Costa Rica.  Did you know I can connect you to well vetted agents, all over the world?  My clients rent these properties out and have a monthly income coming in that pays the mortgage and then some.  All while building equity.  Local cottages are another great option for this.  With short term rentals becoming more and more legislated and difficult, you need to understand long term rentals vs short term rentals and their legislation. 

#3 - First time Home buyer incentives - CMHC announced a government incentive where they will help with 5-10% of the down payment.  There are specific qualifications for this and it's questionable as to whether or not this will help in cities like Toronto, based on their maximum purchase amounts but it is there and it may be for you. 

#4 - Rent to Own -  The title is pretty self explanatory.  Something you should know in a rent to own situation, they still typically require a downpayment and the down payment requirements may vary based on your credit history and or past risk from bankruptcy, etc.  

#5 - Shared Equity Investors - A company that comes to mind is Ourboro.  They will invest their money on the down payment portion with you and buy a share of your home, as they like to put it.  They have a percentage of your equity and when you sell (within 5 - 10 years), they will receive their share percentage on the gains or losses of the appreciation.  It’s kind of like the government's first time home buyer incentive but the qualifications on the purchase price and income are more realistic and accommodating for Toronto and GTA area.. 

Like anything, you have to understand the pro’s and con’s to all of these situations and do your due diligence but there are solutions out there for someone that may be falling just a bit short on things! :)

I’m Meegan Dennie, call me for all your real estate needs in Toronto and the GTA.