Real Estate 101: Insights For Gen Z

Gen Z may not be financially or age-appropriate to buy a house, but many are exploring their options. Understanding the basics of realty is essential to making wise decisions. Here’s our guide to the basics you should know about the home-buying process, once you’re ready to make the plunge. 

When is the best time of year to buy?

It can be difficult to choose the right time to buy. The financial turmoil of the 2007-2008 housing crisis and the dangers of purchasing a home at the wrong time —and with inadequate funds—are vivid memories for a large number of Millennials and Gen Zers. But instead of letting that deter you from making a purchase, it’s crucial to take some time to consider your unique situation and gain as much knowledge as you can about the process.

The best time for you to buy a house is largely based on your personal circumstances and your financial preparedness. Before you start looking for a home, make sure that you have a stable salary, manageable debt, and a high credit score. 

You’ll also want to stay on top of local market conditions. Asking a real estate agent about recent trends in interest rate changes, the competition for homes in the desired area, or the typical closing costs for home purchases within your city are all useful questions. These factors will all affect the timing and success for your home purchase.

Employment History

From the standpoint of the lender, as well as to make sure you’ll be prepared for the financial demands of homeownership, a consistent work history is crucial. Although many lenders require two years of previous work experience, a college degree can also contribute to this ideal pattern. For self-employed people or gig workers, past tax returns are required to prove a consistent income.

Credit Scores 

Make sure your credit score is as high as it can be if you haven’t already. You should request copies of your credit reports from the major reporting agencies as soon as you can. Make sure to pay off all your debts and meet your obligations. Also, make sure that your credit rating is accurate.

Evaluate Your Expectations 

A good agent can help you decide what is important and what is not. Recall that your first house is just a place to start when building equity; it doesn’t have to be your permanent residence. When looking for a house, being flexible and open-minded can be a great advantage. You might also consider less expensive areas, outside of large cities and wealthy communities. Even a small reduction in your cost-of-living will help. Even a slight reduction in your monthly mortgage payment will make a big difference to your budget and affordability.

Tax-Free Savings account

Invest in a TFSA for a tax-free down payment. No tax is due on interest, dividends or capital gains. Take advantage of retirement programs sponsored by your employer, such as RRSPs. Plan automatic transfers from your account at payday. Start with 10% of your income and gradually increase it. By doing this, you’ll be able to monitor your development and keep the money for other needs.

Are you interested in buying a home this summer?Call us today! Zoocasa’s experienced agents will be happy to guide you through this exciting process of buying a home!