Tips to Get into Today’s Housing Market from Trusted Saskatoon Realtor Clark Dziadyk

Most people don’t know that if you buy a home that contains a rental unit, the income from that unit can help you to qualify to get a mortgage. For example, if you were to buy a home with a basement suite, you can rent out the basement. For maximum income, you could even live in the basement suite yourself and rent out the upper portion of the house.

In order to cut costs, even more, you could look into doing renovations to the rental yourself, which is, of course, more work but it could save you lots of money in the end. Rental spaces are definitely worth exploring! You can always run the numbers on purchasing certain properties with rental spaces in them to determine the best possible outcome for you. Worried about irritating and irrational tenants? Or dealing with the regulations that come with renting out a portion of your home? Concerns such as these can be dealt with by screening tenants during application processes. Make sure to check out the Government Canada website for regulations that need to be followed.

# 2 Go in With a Partner (or a few)

A huge way to cut costs would be to split everything between you and another or a few people! Let’s be honest, these days it’s becoming common for couples to find themselves living with other couples! To make this happen, you must first choose a worthy partner. Whether it be a few siblings sharing a house, a couple friends splitting a condo well you get the idea! You may be able to split the bills, monthly payments and the havoc of a down payment with one or more people! A few things need to be in place in order for this process to work! Like well-chosen partners, a draft of a co-ownership agreement drawn up by a lawyer that spells out all of the rules, and a system for communication between partners to make sure that everything moves smoothly. Communication between housemates is key, especially in preventing miscommunications and conflicts.

Another alternative in order to lessen your stress is to consider co-ownership opportunities. These allow you to buy shares of a company that owns the property, or to buy a small ownership percentage of the property. By doing this, it grants you specific rights to a unit itself. 

# 3 Consider Using Your RRSP

As a first time homeowner, you have written proof that you plan to build or buy a new home and you have money in your RRSP. As a Trusted Saskatoon realtor, Clark Dziadyk can help you with all of your pre-ownership needs! You may be able to use the RRSP Home Buyer’s Plan to get your hands on a tax-free down payment. However, if you are helping a relative with a disability through this process, you also qualify! The Home Buyer’s Plan allows each spouse to withdraw $25,000 to purchase a house. The only downfall is that you need to pay the money back to your RSSP in annual payments within 15 years. Any amount unpaid within that timeframe will be subject to income tax.

Tax-free money homeownership looks pretty good, doesn’t it? Or at least being able to start off your homeownership using tax-free money is. Depending on your individual tax bracket, it could be like having almost twice as much money at your disposal. You just cannot forget about those annual repayments in your new budget. 

#4 Make MORE Money

Home prices seem to be increasing but that doesn’t always mean that your income is. An obvious solution is to make more money; however, this is easier said than done. Here are some approaches that can be taken:

The quickest approach is to ask for a raise at work. This can be a lot to ask, but it doesn’t always have to be. Communicating to your boss that you’re looking to settle down and buy a home (first time, second, upgrade, etc.) and what income level you’re striving for in order to make it happen, you could persuade them into giving you the raise you are looking for! In the end, asking for a raise is like a sales pitch. You are selling yourself by describing the situation, your goals, how to leverage your strengths, and ultimately asking for the raise itself. Whether you believe it or not, employers are people! Generally, people like to be as helpful as they can towards others. Sharing personal stories always have a measure of relatability to them, and more often than not they work better than pure logic.

On the other hand, if you’re willing to open yourself up to new opportunities, there is no harm in looking into another job. Shop yourself around and see if you are truly earning what you should be in your career marketplace. You will surprise yourself and may open new doors to new job opportunities in your field. Increase your network and speak to recruiters, you may find the job that you’ve been looking for that increases your income!

# 5 Relax

Let’s be honest, you’re not getting any younger. You want to be a homeowner! The whole process can be very stressful for a person. In order to relieve stress, you should consider using a Trusted Saskatoon Realtor such as Clark Dziadyk!

You need to make sure you’re ready before you become a homeowner! The right house will come along, it always does! Clark can make sure that you find your dream home! We live in a real-estate obsessed culture, but the relationships you build with family and friends will be the real key to your happiness in the long run. 

Set goals for the next few years of where you want to get to and take it one goal at a time. Write out your plan for home ownership and hold yourself accountable to it! Meanwhile, take a deep breath, relax, sign up for a yoga class and don’t rush things. You will be a homeowner one day! Believe it!

This article was adapted from Zoocasa.

CLARK DZIADYK, The Associates of Ron Baliski Realty Inc. Coldwell Banker and he is 

a Trusted Saskatoon Realtor. You can find him at 1322 8th Street East Saskatoon! View his Facebook page here!