The structure of the Canadian family is constantly evolving. Fifty years ago, large families in rural areas made up a large percentage of Canadian homeowners. Today the single homebuyer is increasingly common in real estate; in 2016, one-person households made up an all-time high of 28.2% of all private Canadian households. If you are looking to buy as a single person, here’s what you need to know.
There are some obvious benefits to being a single homebuyer. The clarity you have as a single homebuyer can make decisions simpler and increase your options. With only one set of needs and personal preferences to consider, you won’t have to make compromises to suit someone else’s interests, needs or aesthetic preferences. You can be clear on your budget and your goals. When it’s time to make a big decision in the midst of a bidding war, you can make a wise, intuitive choice without considering what someone else is looking for.
Being a single homebuyer can also give you more flexibility with move-in dates, which could be appealing to a seller looking for an offer with fewer conditions.
If a school district or a partner’s job in a specific location isn’t factoring into your decision, you may also be able to choose a more affordable home in a less expensive neighbourhood or select from a wider range of property types. Studios, lofts and open-concept homes with fewer walls can be appealing to single buyers but aren’t options for multiple people needing personal space.
Financial challenges are the most common obstacle for single homebuyers. If you’re purchasing property with a partner, you have two income streams and more potential savings to pool together. This can make it easier to put down a bigger down payment or to afford a bigger home. If you’re buying solo, you don’t have the security of another income in case you lose your job or get sick. But if you’re a solo buyer with a good credit score, steady income and the savings you need to put down a reasonable down payment, buying a home alone might make sense for you. Some individual buyers might choose to have a family member or close friend cosign a loan. But this isn’t a small ask; if you default on your payments, the co-borrower is equally responsible for your debt and could also face consequences.
A key thing to remember if you’re buying alone is that you don’t have another person to fall back on. Make sure you talk about backup plans with your financial advisor. Can you afford this home if you lose your job? What costs should you be anticipating in case of a renovation or remodel? Aside from professional help, consider bringing a close friend or family member to viewings for another set of eyes and ears. You can also ask loved ones if they have professionals they’ve worked with; a referral goes a long way. Set yourself up for success with these tips:
Since you’re making all of the decisions on your own, it’s helpful to have a trusted friend, a real estate professional, a lawyer or a financial advisor who can offer professional and personal advice. This is especially useful when you need to make a quick offer or are emotionally invested in a home.
Before you dive into a search or fall in love with a property, get financially prepared.
You might be someone who loves living alone and plans to do so in the long-term, but life is full of surprises. Consider what would happen if you were offered a job in another province or met a partner. Is your property suitable for a joint living arrangement, rental unit or caring for an older family member at some point? Consider all the potential outcomes your future might bring.
We provide personalized guidance for your real estate journey. Looking to buy a home? Our dedicated team of experts offers support from initial planning to moving day. Work with top-rated, local real estate agents and gain access to financial insights and advice from RBC Home Advisors.
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.
This article was originally published on RBC My Money Matters and has been republished here wit...
This article was originally published on RBC My Money Matters and has been republished here wit...
Rising construction costs and higher interest rates have led to a slowdown in the pre-const...
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