A new book fills the desperate need for a new homebuyer’s manual

By
Millicent Wong
-
0
516
Top stories newsletter logo

  1. property
  2. mortgages

Romana King shares years of experience in the real estate industry to help potential homebuyers make informed decisions

A realtor sign outside a house for sale in Toronto. A realtor sign outside a home for sale in Toronto. Photo by REUTERS/Chris Helgren/File Photo

Last year, for what is likely the first time, one million households moved into a newly bought or acquired home in Canada. Since each property has a buyer and seller associated with it, one can imagine that at least two million households were directly involved in these transactions. Millions more could have been active in the housing market as well.

This ad has not yet loaded, but your article continues below.

Despite all this activity, there is an urgent need for compelling advice on what to consider before, during and after buying or selling a home. First-time homebuyers, who typically have no direct experience with the buying logistics or knowledge of new homeowner’s responsibilities, would no doubt appreciate a handbook to walk them through the early days of homeownership. Unfortunately, such manuals or books are hard to find. However, we came across one that might be useful.

But first, how did we count a million home sales? The Canadian Real Estate Association (CREA) is registered 667,000 home sales in 2021 in the Multiple Listing Service (MLS), but this does not capture direct or private sales. Industry leaders believe that MLS accounts for approximately 85 percent of all sales in Canada. If this were the case, one could estimate the resales or transfers in 2021 at around 785,000.

This ad has not yet loaded, but your article continues below.

MLS also does not include new home sales. Canada Mortgage and Housing Corp. (CMHC) reported that 223,000 homes were built in 2021, bringing the total number of new and resale home transactions to more than one million. Not all of these new homes were sold in 2021 (some transactions would have happened earlier), but they became ready for occupancy in 2021.

First-time homebuyers make up about half of buyers in the resale market, and they may not have considered home insurance, land purchase, or property taxes and maintenance in the past. But as new homeowners, they must familiarize themselves with the financial and structural health of their property. Gone are the good old days of calling the landlord to fix a leaky faucet or a broken dishwasher.

This ad has not yet loaded, but your article continues below.

  1. none

    Destroying the myth of Canada’s millions or more vacant homes

  2. Home sales center in Carleton Place.

    Ontario needs to double housing production to improve affordability, task force says

  3. A duplex is being sold in downtown Toronto. More housing could be created in city cores by allowing homeowners in single-family areas to convert their homes into two-family homes or to subdivide an existing lot into two lots.

    Do you want to make housing affordable? Let downtown homeowners share their lots

A recently published book, House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth, may be helpful in this regard. Romana King, Director of Content at online real estate agent Zolo, shares her years of experience in the real estate industry to help potential homebuyers make informed decisions before buying, and also how homeowners can maintain and enhance their property to increase its intrinsic value to maximize.

New homeowners will also learn how to pay off their mortgage faster by speeding up payments to two a month instead of one. For example, expedited biweekly payments of $1,490 instead of monthly mortgage payments of $2,979 can reduce payback periods by two years and eight months, the book says.

This ad has not yet loaded, but your article continues below.

The book also describes ways to keep a property in good condition and encourages homeowners to make strategic investments. Some might view renovations strictly as expenses, but the book presents them as investments that can add value to a property in the future.

A recently Re/Max Canada report reconfirmed that the housing markets have delivered tremendous returns over the past 25 years, with average prices in the greater Toronto area rising 453 percent. Most homeowners, on average, have done well over the same period, but House Poor No More shows how they can do better than average. However, it also encourages readers to consider whether home ownership is right for them and cautions readers to be cautious and fear missing out.

Murtaza Haider is Professor of Real Estate Management at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached at the Haider-Moranis Bulletin website, www.hmbulletin.com.

This ad has not yet loaded, but your article continues below.

By clicking the subscribe button, you agree to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Remarks

Postmedia strives to maintain a lively but civilized discussion forum and encourages all readers to share their opinions on our articles. Comments may take up to an hour to be moderated before they appear on the site. We ask that you keep your comments relevant and respectful. We’ve turned on email notifications – you’ll now receive an email when you get a reply to your comment, there’s an update on a comment thread you follow, or when a user you follow comments follows. For more information and details on how to customize your email settings, see our Community Guidelines.