If you went to a real estate advisor in Victoria, BC a few decades ago, they likely would have pitched you on your ‘forever home.’ And that would have been great advice—back then. But the real estate market has changed dramatically. That means we all need new strategies when it comes to our real estate goals.
I bought my first home when I was 20 years old, and because it was a smart investment, I was able to use the growth in value to go on to buy and sell several larger properties in the capital region on Vancouver Island. I know from experience that your first home doesn’t have to be your forever home—as long as it is still a smart real estate investment.
Here’s what I believe my clients need to know before diving into real estate.
Stop Chasing Your Forever Home
You might feel priced out in a hot market like ours. And in fact, you may currently be priced out of your dream home (see my tips on how to realistically plan for homeownership here). But it doesn’t have to be that way forever.
That’s because today’s real estate market is about getting your foot in the door. And getting your foot in the door is not always the same thing as getting your dream home.
Don’t get me wrong. I’m passionate about finding my clients’ perfect real estate match. But sometimes, depending on their budget, that might mean finding a home they can be happy in—for now—as long as it’s a smart financial decision they’ll be able to leverage further down the line.
In other words, sometimes, the right home right now is one that hits your main criteria, even if it’s not your ‘dream home.’ When you work with a good advisor, you can still set real estate goals that include your forever home. We might just need to take a bit longer to get there.
I like to use my background in both real estate investment and accounting to help clients analyze the market in a smart way. That means we really look at your home as an investment. You can then use that investment, leveraging equity to work towards your forever home.
In a market like ours, it’s easy to lose out on a home when you take too long to decide. Often a home would make a great place to live and be a great investment, but people drag their feet because it’s not the forever home they’ve been dreaming of their whole lives. But this is often a mistake—one that can actually keep you from being able to build up the equity you need to actually buy that dream home in the future.
I don’t believe in settling, and I’m not suggesting you settle either. But I am suggesting you work with a real estate advisor who can help you understand the numbers game that is modern real estate.