Are you tired of paying rent? Do you feel like your rent is just a waste of money and could go towards something else like mortgage payments but don’t qualify for the homes around you?
Hey hey! I trust you all are enjoying the summer and the sun. 2 back to back posts- I must be on a roll. This is the first part of a series I have been working on talking to recent home buyers on the home buying experience and what it was like. My first guest is Ani. Ani is an engineer and potential real estate investor. He got his first home right after completing his masters at UBC.
Location: Greater Vancouver Area
Age: 30 and Under
When did you buy your home?
My first house was in 2019 at New Westminster, sold it in 2021 to get one in Surrey.
Wheww, did it appreciate in Value?
In the two years, it appreciated in value and went up by 20%.
What made you guys decide to sell?
The market was hot then and we just decided it was best to sell and get something else.
Yes, I bought my first home with a friend. This was a 2 bed and bath with a den in New Westminster. I own my current home alone and it is a one bed with a den in Surrey.
What made you decide you were ready to buy a home?
The feeling of sending rent to my landlord every month while his property value was increasing but my rent wasn’t decreasing inspired me to get a home.
How long did it take you to save up for the downpayment?
While studying in UBC, I saved my scholarship allowance and six months of salary after school I was able to get 5% I needed for the first home.
Did you guys use any government programs or subsidies?
At the time, I was on a work permit and wasn’t eligible for the first time home buyer plan so we went in without any government subsidies.
What made you decide to go in a friend?
On my own, I didn’t qualify for any of the houses or places I was seeing at the time. I wasn’t qualified for anything above $450k.
How did you decide the friend you were going to go in with?
My friend had the willingness and interest in owning property too. Obviously I had to analyze his income and financial history to ensure we could get qualified for something over $450k.
What advice would you give people who are going in with their friends?
Sign a contract!
Did you guys sign any contracts, did you go in 50/50, what was the split?
We didn’t sign any contracts and we went in 50/50. But I would advice you sign a contract and go into tenancy in common as opposed to a joint tenancy. With a tenancy in common, if one party dies, they can pass on their shares to their next of kin but with a joint tenancy, the other party gets 100% of the shares of the property.
What are some things you wish you knew before you got started?
There are a lot and for that I had to prep an e-book for it. For starters, not all realtors will prioritize your expectation or budget so don’t relax and depend on your realtor. Buying resale is very easy if you know what you want, give yourself a timeline and save at-least 7% of the upfront target.
Do you have any horror stories you would like to share?
No, I do my research before I go in. *wink*
Thats it for this post. Thanks to Ani for sharing his experience with us. If you don’t want to miss the other parts of this series, now would be a good time to subscribe to the blog. If you would also like to share your experience anonymously and be a part of the series, you can fill out this form here.