Break free from renting! Explore the ultimate guide tailored for Gen-Z, packed with savvy tips to turn dreams into homeownership reality.
The oldest among the Gen-Z are approaching their late 20s and most of them are still trapped in the rental trap. It may seem like all the economic factors are working against you. With careful planning and guided decisions, you can fulfil the dream of home ownership as well.
As potential first-time homeowners, Gen-Z faces a challenging housing market and isn’t as lucky as baby boomers. However, with the help of a reputable Kelowna real estate agent, conquering a tough market becomes a breeze.
Tips for Gen-Z to buy your first home:
1. Think About The Type Of Property You Want
A property comes in various forms and sizes. Duplexes, multi-generation homes, single-family houses and many more. Decide on the type of Okanagan homes for sale you want and that unleashes the next steps in the equation.
When you have your ideal home in mind, budgeting, saving money and altering your lifestyle to reach that goal becomes more feasible. You’re setting a goal for yourself. Once you know about it, several paths that lead up to it, open up for you . You get to choose which one will be suite for you.
2. Set A Reasonable Target
Once you have decided on the type of home you want, you can start budgeting for it. The asking price for an average single-family, only for the Okanagan house for sale is around $1 million. If you don’t have a very high-paying job in tech, finance or marketing, that’s going to be unreachable for most Gen-Zers, as soon from market research.
Instead, of this high price range , it’s better to aim for something more achievable. Think of more affordable options like apartments, shared duplexes and condos. They are usually more affordable and some Kelowna condo developments come with shared amenities like gyms, walking paths, community centres and other such things that sweeten the deal.
3. Work With Real Estate Agents And Listing Agencies
You know some retirees who know a few great locations. Or, a friend who has the right connections and can help you score a bargain on an amazing property. Well, you’re extremely lucky if you can get a property through that route. However, when you basically go through all your home options for living, it’s best to get help from real estate agents. You can look through listing agencies.
Mainly listing agencies are very good at their job, and have some of the best properties in the market of Canada. For instance, while the average home for sale in Okanagan goes for 7 figures, listing agencies can bring you properties or around $400,000 or less. Yes, they take a small commission from the deal. However, the final price is still going to cost you a fraction of a million dollars.
4. Improve Your Credit Score
Mortgage rates have doubled over the past few years, but you don’t need to pay that rate. There’s an easy way to improve your chances of getting approved for a loan and lowering the mortgage rate significantly. Just work on your credit score to cut down on the cost of homeownership.
If you’re sitting at the higher end of 600s, try to get it over 700. If you’re already in the 700s, try to reach 760 or higher. A higher credit score often qualifies you for a lower mortgage rate. If you’re able to lower the rate by just 0.1%, you can save tens of thousands of dollars in the long run. Here are some of the things you can do to improve your credit score:
● Don’t delay bill payments
● Lower your credit utilisation ratio compared to the total credit limit
● Don’t open new cards or loan accounts
● Check your credit report regularly and report discrepancies to the credit bureaus
A great credit score helps you portray yourself as a less risky option to lenders and unlocks the path to owning an Okanagan property for sale.
5. Increase Your Earning Options
Clueless baby boomers and people from older generations love to blame Gen-Z’s obsession with Starbucks’ pumpkin spiced latte and expensive salad bowls for lower homeownership rates. However, major economic factors are working against you and you’re not living during a post world war boom.
Ignore negative voices and work on side hustles to increase your income. You can start with freelancing platforms like Fiverr and Upwork or look for gigs on groups on social media platforms. Increasing your earnings helps you save up a downpayment quickly and reach your goals sooner.
Owning a home in your 20s might seem like a distant dream in today’s market, but not an impossible one. Remember, it’s about smart planning, strategic choices, and taking action. By understanding the market, setting realistic goals, leveraging expert help, and boosting your financial health, you can unlock the door to your Okanagan haven.
