Valentine's Day - Couples vs. Bachelor(ette)s on the Real Estate Market

Tuesday Feb 14th, 2017

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Love is in the air as we celebrate Valentine’s Day.

Chocolates, flowers, and teddy bears for everyone!

 

Many Canadians, both in a relationship and living the bachelor(ette) life, celebrate Valentine’s Day, and the message of love it promotes. As you can imagine, couples and bachelor(ette)s don’t typically celebrate in the same way; and just as with the real estate market, the experience for couples and bachelors can feel very different.

 

Since it’s Valentine’s Day, feel free to grab a blanket and cozy up as we take a quick look into the differences in real estate buying behaviors, techniques, and experiences of married and common law couples, as well as bachelor(ette)s.

 

Married Couple: Sam and Taylor

Sam and Taylor have been married now for just over a year, and after renting their first three residences, are prepared to buy a house in the Rouge Valley. Taylor and Sam, being married, share a bank account and thusly, have the benefit of a shared income. This shared income will not only make it easier to come up with the down payment, but can provide a better chance to qualify you for a higher mortgage. In addition, they are likely planning to live in the residence long-term, as they may be looking to have children, grow their careers, or simply establish roots in a community.

Since this is both their first home, Sam and Taylor are eligible for a first time buyer’s rebate of up to $4000. Even if Sam were to have owned a home before meeting Taylor, so long as she sold it before they were married, they are still eligible for a first time buyer’s rebate.

Lastly, Taylor and Sam are likely going to stay in their new home for at least ten years. Over the ten years the market will likely rise and fall, however it will stabilize, providing them with a secure investment. In addition, they will be building equity the whole time by paying down their mortgage, helping to secure their financial future. 

Main take-aways:

- Higher Qualifying Mortgage Rate

- Market Security

- Eligible for First Time Homeowner Rebate

 

Dating/ Common Law/ Partners: Alex and Jesse

Alex and Jesse have been dating now for three years. They don’t have very concrete plans for the future, as they are not sure what they would like to do. They feel that marriage in many cases limits their choices in the future. Maybe Jesse lived in Calgary and moved to Toronto so that Alex could get that dream job, or maybe Alex may end up taking a job in Calgary, while Jesse needs to stay in Toronto for film. There are many potential options in their futures and they want to be prepared for anything. 

In Canada, the number of common-law couples rose 13.9 per cent between 2006 and 2011, according to the latest data from Statistics Canada. It’s unsurprising that the rate of common-law relationships is on the rise, as job security is harder to come by and social trends move away from traditional family-oriented households.

Alex and Jesse have the same opportunity to quality for the first time buyers rebate, however they likely will not share a bank account and therefore have slightly less buying power than a married couple. This said, common-law couples in a similar financial situation to a married couple are likely to qualify for a similar mortgage, as marital status is not taken into consideration.

Main take-aways:

- High Qualifying Mortgage Rate

- Market and Personal Freedom

- Eligible for First Time Homeowner Rebate

 

Bachelor(ette): Dylan

Dylan is a young freelancer for an advertising company downtown Toronto. Dylan spends much of their free time with friends and entertaining guests at his downtown condominium, which he rents, but feels he is in a financial situation that he can now buy a condo.

Dylan has to rely on his own income when it comes to a down payment and qualifying for a mortgage. This is where Dylan may find that he doesn’t qualify for the same mortgage rate as a couple would, due to the fact that there is only one income associated with Dylan. Dylan does have the option to add a co-signer to his mortgage, for example his parents, allowing him to be approved for a higher mortgage rate.

Because Dylan is single, he likely has disposable income, which may lead Dylan to desire to make investments in the market once he owns his home. Dylan is more likely to buy and sell on the market than the couples, as Dylan does not have another person to challenge his financial investments. This said, Dylan, like our couples, could qualify for the first time homeowner’s rebate if this is his first property.

Main take-aways:

- Qualifying Factors Based on Individual

- Personal Freedom

- Eligible for First Time Homeowner Rebate

 

When all’s said and done, the real estate market is not designed for a specific customer. People from all walks of life with many different backgrounds, values, and goals, all participate in this diverse and ever-changing market. All in all it doesn’t matter what your relationship-life is like when it comes to the real estate market, there is a property that matches your needs.

So no matter what you go home to tonight, be it roses or Netflix, Sutton West Realty will have your needs covered. 

 

Happy Valentine’s Day

- Kyle


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