This influx represents one of the highest rates per population of any country in the world.

These newcomers will be looking to navigate the dream of owning a home in Canada. According to REALTOR.ca insights, approximately 40% of individuals currently searching for homes are first-time buyers.

This article lays out the three significant steps to help you become prepared about the purchasing a home in 2024, including:

• Planning out your needs and what you can afford;
• Arranging your finances and mortgage; and
• Selecting a real estate agent

Plan the Requirements of Your First Home and What You Can Afford in 2024

What do you need in a first home?

Homes come in all shapes and sizes, in different neighbourhoods, and with various amenities. Before you even look at potential homes, you need to decide what’s important to you. This is especially true if you’re buying a home with a partner. It’s better to understand each other’s needs and wants now rather than later on in the process. For example, the neighbourhood and school district may be vital if you want or already have children and want to live in a neighbourhood with great schools.

What kind of first home can you reasonably afford?

You should also consider what you can afford when contemplating your needs and wants. You may want 3,000 square feet of space. But such a large home is out of reach for most first-time homebuyers. Areas with high-ranking school districts are also expensive.

Even if you can get an enormous mortgage to purchase the most expensive house available to you, it doesn’t mean you should. A sizeable monthly mortgage payment can hurt your financial and mental well-being in the long term. The Canada Mortgage and Housing Corporation recommends keeping your total housing payment (this includes taxes, maintenance, and mortgage) under 35% of your gross household income.

Arrange Your Finances and Mortgage for Your First Home

Are you financially ready to purchase your first home in 2024?

Buying your first home requires financial readiness. At this point, you’ve likely saved for a downpayment. But are you ready for closing costs such as legal fees and home inspection costs? These costs can amount to 2 – 4% of your purchase price. Further, once you purchase the home, are you ready for property taxes and maintenance expenses on top of your monthly mortgage payments?

It’s also important to understand what tools the Canadian government provides to first-time homebuyers. These tools generally make it easier for first-time homebuyers to make their purchase.

What is your credit score?

The next step is to review your credit score, which determines whether you’re qualified mortgage. It’s handy to find services that can help track your credit score. Many banks offer free credit score estimates without impacting it.

If your credit is on the low side, it’s essential to bring it up. This isn’t something you can do overnight. Raising your score may even delay your first home purchase. But a better credit score can provide you with better mortgage rates and more financial flexibility. If you’re purchasing your first home with a partner, note that lenders consider both of your scores.

How to find a mortgage for your first home

Your mortgage is commonly the largest loan you’ll take out in your lifetime. Therefore, it’s essential to shop for the best one. You’ll likely speak with two types of people in this process: a mortgage lender and/or a mortgage broker.

• Mortgage lenders are most commonly your large banks or credit unions. They lend money directly to you.
• Mortgage brokers don’t directly lend to you but arrange a transaction to help you find a lender. Brokers have access to many lenders beyond the big banks and credit unions — generally referred to as “A Lenders”. They can introduce you to B and C lenders who may be more lenient if you have a less-than-pristine credit score.

Previously this process involved visiting numerous banks and mortgage broker offices. But post COVID-19, this process is more commonly done over video conferencing. When the deal is settled, some lenders or brokers may still require you to visit in person to sign the paperwork.

The interest rate on your mortgage is the most crucial characteristic, but also consider aspects such as:

• Do I need to purchase mortgage insurance?
• What fees do I need to pay if I break the mortgage?
• Are there any penalties if I refinance my home?

Getting your mortgage pre-approved before you begin to look at properties is essential but optional. A pre-approved mortgage can provide certainty in how much you can bid on a house when you find the one.

Find a Real Estate Agent

Buying a home isn’t easy. It’s a lengthy process with complicated steps and procedures. Luckily, real estate agents are here to help. A realtor can match your needs and wants with what you can afford. They can also advise what to look out for in a first home — things you’ve never anticipated. They can address your concerns about the current market conditions, how certain neighbourhoods are, and what red flags to look out for and provide referrals to real estate lawyers, home inspectors, and other professionals part of the home buying process.

A REALTOR® can also do a lot of the in-person work for you during this COVID-era. Suppose you’re afraid of attending a home showing. In that case, many agents may be happy to visit the property on your behalf and show it to you via ZOOM, Facetime, or similar applications.

Once you’re ready to close on your deal, a real estate advisor can help prepare your offer package. This includes your offer price, pre-approval letter, proof of funds for the down payment, and terms and conditions.

It’s also important that you meet with several real estate agents before selecting the one you want to work with. Hiring an agent is similar to hiring an employee. You’ll want to meet with multiple agents and ask questions to understand their credentials. Online reviews are also a great way to differentiate between agents as reviews are written by real clients that have had a full experience working with the prospective agent you are interviewing.

Buying your first home is a complicated and exciting process — especially in 2024. It’s important to plan out what you can afford and what amenities and features that you and your partner need in a home. Arranging your finances and mortgage and finding an excellent real estate agent are also critical to making this process as smooth as possible and turning your homeownership dream into reality.

The post Three Steps to Purchasing Your First Home in 2024 first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

But with COVID-19 and a migration to the digital world, staging your home isn’t only for showings and open houses. Staging your home is also crucial for the photos and videos used to sell your home. These marketing assets will make the first impression on potential buyers.

In this article, we discuss how to stage your home for the virtual world and how COVID-19 may change how you should stage your home in 2021.

The home staging basics

Decluttering and cleaning are still important

Decluttering and deep cleaning your home is an effective way to stage your home. This remains true for staging in the virtual world. Decluttering can make your home seem more elegant and help potential buyers imagine themselves moving in.

Although people won’t be visiting your home in person (just yet), it’s still essential to deep clean your rooms. Often, the dirt, dust, and grim around your home can add up and provide a sense that your house isn’t for the person looking at the photos of your rooms. Unclean windows, a fine layer of dust on your furniture, or a stain on the rug can quickly put someone off.

Small renovations can help you shine

Painting your rooms can be one of the easiest ways to freshen things up. It can turn an old room into a new one. A fresh coat of paint removes any stains, marks, or scratches—no matter how small—from being noticed. This can also reduce the cost of virtually staging your home as the photo editor will have fewer details to clean up (more about virtual staging later in this article).

Enlist small decorations

Commonly, what sets apart a fancy home from a regular one are the details and minor decorations that add up to a certain suave in a room. For example, hardcover books, throw pillows and blankets, potted plants, and artwork can add a lot to a room and jazz it up. The best part is that these items are usually easily accessible from places such as Amazon, so you don’t even need to leave the comfort of your own home.

Consider how COVID-19 trends have changed home staging

Home offices and gyms are now in-demand spaces

COVID-19 has changed what buyers look for in a home. People are moving to the suburbs and to larger homes as they envision a home gym or office to compensate for their inability to have a gym or office like before.

Instead of staging an area as a second dining or living room or as a storage closet, these places could be better set as a home office. You could further stage an empty basement with a set of dumbbells or even a squat rack to expand a potential buyer’s imagination. Other possibilities could include a home classroom, media room (to replace movie theatres), or spa area.

Create an outdoor retreat

The pandemic has also driven demand for private outdoor space. People, more than ever, want fresh air without being in public. Staging your outdoor patio with excellent patio furniture or even a fire pit can create a sense of an “outdoor retreat” that buyers are willing to line up for. It creates an opportunity to entertain guests when the weather is warmer while reducing the fear of COVID-19 transmission.

DIY or professional stager?

This generally centres around declutter and trying your best to make everything appear fresh and pretty for the pictures that’ll sell your property.

However, stagers have also adapted to COVID-19. Some stagers are now offering their services virtually. You can take them around your home via FaceTime or Zoom as they provide suggestions on how you can spruce the place up. Another alternative is to find a real estate agent who also provides home staging services.

A stager can be expensive. Especially with furniture rentals, it can amount to thousands of dollars. However, it’s commonly worth the cost. A well-staged home can help your property stand apart from others in the market and ultimately increase the final selling price.

If you do look for a professional home stager, you want to look out for the following:

• Portfolio: What was their past work like? What do their prior clients say about them?
• Professionalism: Do they act professional when they communicate with you? Do they get deliverables to you when they say they will?
• Real estate knowledge: A stager who understands the real estate market understands what’s in demand and can orient your home to fulfill such market demands.

What about virtual staging?

Virtual staging beings with a photographer taking photos of your rooms. The photos are then sent to a virtual stager who uses software to achieve a particular look akin to a staged home. This effectively removes the need to rent furniture when staging your home (an enormous cost and hassle).

Virtual stagers can remove or add in pieces of furniture, change a room’s colour schemes, or even change whole areas of your home. This type of service is more important than ever as demand for staging has increased due to an increased dependency on real estate photography to drive sales. At the same time, traditional home staging has become more complex with COVID-19.

This method of staging is also more cost-efficient. Virtual staging services can cost anywhere between $16-$100 per photo. Although it’s common to have 20 pictures for a single home listing, rooms such as washrooms and closets likely won’t require this treatment. As a result, you’re probably not looking at thousands of dollars to virtually stage your home.

Staging your home is a great way to make it stand out from other properties in your area. It can ultimately help you sell your home for a better price at a faster rate. There are many options to stage your home, such as DIY, a professional stager, or doing it virtually. Whichever option you choose, you can be sure that it’ll likely add value to your selling process.

The post How to stage your home to sell in the virtual world first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Now with COVID-19 keeping us in our homes, there’s a new exodus, of not only Canadians but people across the world, reconsidering whether living in the city is the right decision. A popular New York Times article noted that between March 15 and April 28 of this year, moves from New York to Connecticut increased 74% from a year ago. Further, moves from New York to New Jersey saw a 38% increase, and from New York to Long Island saw a 48% increase.

So, what is causing these moves to the suburbs? This article reviews how and why COVID-19 is causing more people to move out of the city core. The post also provides insight into the non-COVID-19-related trend towards moving from the city to the suburbs, especially with millennial homebuyers. Lastly, we note some things to consider before actually looking for a home in the suburbs.

How COVID-19 is Pushing People to Reconsider

Many city homeowners and renters have wanted to move to the suburbs for some time. COVID-19 may have pushed this idea forward. After several months of cooping inside the confines of a small apartment or home, many desire more space and greenery. A larger home is also becoming attractive as people work from home and dream of a home office beyond a nook in their kitchen. However, the only way to afford a larger home is to move to the suburbs, where sizable homes are more affordable.

COVID-19 has also instilled fear into people. There’s the fear of crowded parks when you walk your dog or the elevator buttons that you need to press on your way back home. Instead, a suburban home can provide a better ability to distance from neighbours. This is especially important as we don’t know when COVID-19 will end.

A significant downside to suburban living is the longer commute. Office buildings tend to concentrate in downtown cores. TD’s 2019 Spring Homebuying survey found that 45% of respondents found the ability to live close to work was a key purchasing factor. But COVID-19 has also changed how we work. Companies such as Shopify have permanently moved to a work-from-home model, and the demand to social distance has catapulted most organizations into a firmer acceptance of working from home. So, the need for someone to live close to their office is becoming less relevant, making homes in the suburb (with the opportunity to design your own home office) more appealing.

Millennials Making the Move to the Suburbs

TD’s homebuying survey also found that of the 8 out of 10 millennials who aspire to own a home, two-thirds were willing to forego living in the city to meet their home-ownership aspirations. For millennials homebuyers, affordability is on the top of their mind. They also care for the size of their home, the neighbourhood, and the amount of outdoor space. This is why a home in the suburbs may better attract millennials.

As a result of this trend towards suburban living, both city planners and large corporations are taking note. Developers are looking to create city centres that provide millennials with the same benefits as the downtown core, with high-end dining, nightlife, event venues, and more. Multinational corporations are also opening second offices in close-by suburbs in addition to an office in the downtown core. A suburb office can offer less pricey real estate to the company and more convenience to some employees. In Vaughan, Ontario, many of the big accounting firms such as PwC and KPMG have opened a second headquarters, just a 40-minute drive from their downtown office.

What to Consider Before Moving to the Suburbs

Moving from the city to the suburbs is no small task. There are several items to consider before making the move. This includes leaving friends and family and additional costs.

If you decide to move to the suburbs, remember that visiting a friend or family member who also lives in the city is no longer a short walk or subways ride away. The ability to socialize with others ultimately becomes harder, as most places in the suburbs require at least 10 minute or more of driving. This inability to socialize is why some believe suburbs make people miserable. Now, meeting with a friend may involve driving 40 minutes downtown, finding parking, and finally walking to your destination.

Although buying a home in the suburbs is cheaper than in the city, it comes with additional costs. A larger home means more maintenance costs. Suddenly, there’s a lawn to mow, a pool to drain, and snow to shovel. Utility costs also increase as you need heating and air conditioning for a larger space.

Suburbs are less densely packed, so you can’t assume that its transit system is just as fast and reliable as the city’s. So, moving out of the city may mean having to buy or lease a car… maybe even two cars. Oh yeah, and there are also car insurance and car maintenance costs that come with that. If you need to work at an office, it likely means a further commute, which also increases your day-to-day expenses.

Moving from the city to the suburbs can mean more space at a lower cost. Especially with COVID-19 forcing us to stay at home, many people are getting closer to making the move. Moving to the suburbs is also how many millennials are hoping to purchase a home, as city prices are unaffordable. Just remember that moving out of the city may mean leaving friends and family and new expenses.

The post Why Canadians are Moving from the City to the Suburbs first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Nothing is certain, but with a COVID-19 vaccine on the way, the market may return to something closer to what we’re used to. However, the pandemic left us with low-interest rates and housing trends, such as a desire for more living space, that will likely continue.

This article discusses three things we can expect from the Canadian real estate market in 2021. This includes:

• A return to a typical real estate cycle with higher home prices;
• An increasing demand for single-family homes in suburban cities; and,
• A rebound of the condominium apartment market.

The Real Estate Cycle Should Return to Normal with Even Higher Prices

In March 2020, the effects of COVID-19 finally hit Canada. The federal and provincial governments implemented new policies, such as closing non-essential businesses. People generally stayed indoors, and realtors could no longer hold open houses.

Although the spring season is usually when real estate markets rebound from their winter lows, home sales in Canada dropped drastically last spring. This downturn caused a “delayed spring market” which led to record-breaking sales in the summer and fall months of 2020. The Canada Real Estate Association (CREA) predicts that 2020 should end with a record national sales number of 544,413 units sold, an 11.1% increase from 2019.

Many real estate agents and professionals believe that the sales cycle will return to normal this year. That means we likely won’t see another spring drought or delayed market. The COVID-19 vaccine brings more certainty to our safety, and this hopefully translates to some normalcy returning.

People who have been holding out to sell or buy their homes due to the pandemic may feel more confident with a vaccine circulating in Canada. As a result, many expect that real estate activity will increase in 2021. The low-interest rates, reduced spending habits during lockdowns, and the vaccine may likely drive demand for homes and push average home prices across Canada upwards. CREA forecasts that home prices in 2021 will rise by 9.1%. Additionally, the 2021 RE/MAX Housing Market Outlook Report estimates that national residential home prices should increase 4-6% in 2021.

Single-Family Homes Will Continue to Drive Demand in the 2021 Real Estate Market

The move to single-family homes in suburban areas is a pandemic-induced trend we saw in 2020 that’ll likely continue into 2021. With the closure of offices and a need to stay home except for essential tasks, many city-core dwellers realized that a 900-square foot condominium is not enough space. Being stuck between the same four walls can be maddening!

As a result, many Canadians took advantage of the low-interest rates to move into a bigger, single-family home. These homebuyers commonly looked to areas further from the downtown office centres due to the ability or requirement to work remotely. For some, this means that they can move to the cottage country and only have to commute to their kitchen table or home office to start their workday.

Mid-size cities can provide attractive amenities but at a lower cost of living than Toronto or Vancouver. Houses in less dense areas are also usually better value. Small towns can provide even more value and possibly more greenspace.

For example, Ottawa became one of Canada’s hottest markets in 2020. In November, home prices grew 19% year-over-year, and people don’t believe it’s stopping any time soon. A Royal Lepage market survey predicts that Ottawa home prices will increase by 11.5% year-over-year in 2021.

The 2021 Condominium Market Will Rebound Once Travel and Universities Reopen

The condominium markets of busy cities such as Toronto declined in the later months of 2020 — a rare sight. Condo apartments in Toronto’s 416 area decreased 3.0% year-over-year in November 2020. These once busy condo markets have also declined in rent prices as it becomes a tenant’s market.

The fact that many city dwellers are moving to single-family homes is a large factor. But restrictions on travelling in and out of the country is also a factor. Short-term rentals for apartments are no longer viable for landlords as travel dries up. As a result, many of these apartment owners attempt to list their properties for long-term rentals or just sell their units.

In 2021, we may see investors take advantage of the declining condo apartment prices in core areas and low-interest rates to add to their rental portfolio. It may also be an opportunity for first-time homebuyers to get their foot into a competitive real estate market. This is why the condo apartment markets in busy Canadian cities will likely return to normal.

Many real estate professionals suggest locking in a lease with a favourable monthly rent now because 2021 will likely return rent prices to normal. As the vaccine begins to roll out, it’s expected the Canadian government will slowly lift travel restrictions, and tourism and demand for short-term rentals will boom again.

Additionally, new immigrants commonly start as renters. Between 2021 and 2023, Canada aims to welcome approximately 400,000 new immigrants each year. And these new immigrants will likely push up demand for condo rentals.

Hopefully, 2021 will be the year when the pandemic finally ends. The vaccine brings plenty of hope. Canada’s real estate markets may look more normal than last year, but the trend towards larger homes in the suburbs and smaller cities remains. Once travel returns, we can also expect that the condo apartment market return to where it was pre-COVID-19.

The post What Canadians Can Expect in the 2021 Real Estate Market first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

The residential real estate industry is not different from the rest of the corporate world. Homebuyers and sellers must communicate with agents through new means as opposed to face-to-face interactions. Further, home tours have turned virtual. These may become permanent fixtures even once the Coronavirus is no longer everyone’s first thought.

But it’s not only technology leaving a lasting impact on the real estate sector. Everyone has realized the importance of having living space — especially true as many of us must work and self-isolate at home. Homebuyers and sellers now have a more substantial interest in moving to the suburbs, where a larger home is still within their budget.

COVID-19 will have lasting impacts on the real estate market and the buying and sell process. This post discusses COVID-19’s potentially lasting effects on the operations of the real estate industry. This includes:

1. Buyers and sellers using social media to communicate with agents;
2. The increasing use of virtual home tours and remote home buying; and,
3. A greater demand for larger homes in the suburbs.

Meeting and Communicating with Agents via Social Media

How we find an agent to buy or sell our home has changed with technology. Speaking with friends and getting a referral to an agent is still common. But instead of a call, many opt to message an agent on social media.

A 2018 survey on realtors in the digital age found social media was the best source of generating high-quality leads among agents, even more so than Multiple Listing Service (MLS) websites. Now that it’s harder to meet with an agent face-to-face or through cocktail parties and other social gatherings, social media is even more critical for realtors.

The pandemic is likely pushing more real estate agents onto social media to replace the social gatherings where realtors once met new business leads. As more agents adopt this lead generation tactic, it’s likely to stay in their arsenal for the long term. And social media will become more prominent in how buyers/sellers communicate and meet realtors.

Virtual Home Tours and Remote Buying

We’ve used the internet to browse online home listings for the past two decades. There’s nothing new about it. But the ability to do so during COVID-19 has made it more important, and so, agents are putting more effort into their online listings.

Photography

We already understand that pre-COVID, homes that had high-quality photography sold faster. We can only imagine how much faster photos sell a home now that open houses and showings aren’t as frequent. Before we call an agent to book an in-person showing, we’re likely looking through the photos first to narrow down what properties we want to learn more about.

Videography

A real estate video can help a potential buyer feel like they’re walking through the home. Before COVID, 73% of homeowners said they’re more likely to list with an agent who uses video. Again, this number is likely even greater with COVID-19. As agents adopt more real estate videos into their marketing strategy, it may become a new norm for realtors after the pandemic.

Further, drone footage can provide potential buyers and sellers with an idea of how the surrounding community looks. People don’t only buy a home for the interior but also the neighbourhood.

3D Home Renderings

3D home renderings with technologies like Matterport are becoming more important. 3D digital home tours provide potential buyers with a better online experience that may stay in demand even when they can view an open house again.

Remote home buying

COVID-19 has shut borders, which means foreign home buyers likely can’t fly to Canada to view a property before purchase. Even purchasing a property in another province as a Canadian can be difficult.

As a result, remote home purchases have become more popular. 42% of Ontarians said they were “open” or “somewhat open” to purchasing a home they could only view digitally. Some brokerages combine digital 3D home tours with real-time calls with agents to provide an experience that replicates an in-person showing. Ultimately, COVID has made homebuyers more comfortable with remote home purchases, and this effect likely will last post-COVID-19.

A Push Towards Larger Homes in the Suburbs

Condo apartments [AZ1] in downtown city cores have become scary places for those avoiding COVID-19. Thousands of people living in the same building is not a good way to avoid the pandemic. When you combine this with the small spaces that condo owners must self-isolate in, many look to the suburbs as their next big move[AZ2] .

This desire to move to the suburbs isn’t temporary. Remote work has created a longing for home offices that aren’t possible in a condo. In a survey of Ontarian homebuyers, 28% mentioned that pandemic isolation had increased their desire for a bigger home, more space, and more amenities. 25% wanted more outdoor space, which is usually only possible in the suburbs (unless you can afford a high-end property in the city).

COVID-19 has changed society a lot. One of those changes is how we buy and sell a home, and some of these changes are here to stay. Even after the pandemic ends, we’ll likely see social media and online alternatives to home tours take an even larger role in selling homes and driving leads to agents. The demand for larger, suburban homes will also likely continue as we further embrace remote work.

The post How the COVID-19 Pandemic has Permanently Changed How We Buy and Sell Real Estate first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Keeping safe from Coronavirus is difficult for the over 1.9 million Canadians living in condos. One condo building in Calgary has seen the worst of this, as they reported 32 cases of Coronavirus in June. In this article, we provide tips on how to minimize your chances of contracting COVID-19 if you live in a condo building. We explain what condominiums are doing, or should be doing, to prevent a full-building infection and review what you can do as a tenant to avoid being infected.

What Condominiums Are or Should Be Doing

Your condominium building has a responsibility to prevent the building from a COVID-19 outbreak. Most condo corporations have done their part through additional cleanings, closing off certain areas, and communicating reminders and information to tenants.

Additional Cleaning and Sanitation

Like restaurants, malls, busses, and more, condo buildings must sanitize regularly used areas more often to prevent a Coronavirus outbreak. This is especially true for objects such as door handles, stairwell railings, elevator buttons, and more. Additionally, the cleaning supplies that your building uses should no longer depend on scent and cost, but its ability to kill bacteria.

It’s also essential that your building provides its residents with easy access to sanitation, such as hand sanitizer. We may lose track of what we touch and end up with germs on our hands. But if your building has hand sanitizer stations at key areas, it’s a reminder to sanitize our hands.

Closing Off and Restricting Common Areas

Condo residents spend a lot on their condo fees. These fees usually go to amenities such as the pool, gym, and concierge. Although there’s a particular entitlement to these amenities because of condo fees, your condo should stop access to pools, gyms, and other non-essential facilities. These areas are prime for COVID-19 spread. As infection rates slow down, your building may reopen these amenities, but they should do so carefully. One common trend with gyms reopening is for members to book time slots so that the space is not overcrowded. Each time slot should also have space in between for sanitation. Condo buildings should look to do the same with building amenities.

Although the management office was once a place to socialize with your building’s staff or ask questions and file complaints, your condo should restrict access to these areas. You and other tenants can still ask questions or file complaints via phone or email, where the risk of Coronavirus transmission is nil.

Communication with Tenants

Your condo building should communicate with its tenants on multiple fronts. First, although we’ve been told again and again to wash our hands, social distance, and wear masks, it won’t hurt for signs in your condo building to do it again. Everyone forgets, and a reminder is better than a case of COVID-19. If your building isn’t already doing this, it’s an easy suggestion for your condo management.

Your building should also inform everyone about the initiatives they’re taking to prevent the spread of Coronavirus and if there are any possible cases in the building. This information should be available through emails, if your building has your email, or through signs in the elevators or main areas. It’s imperative to know if someone in your building may have COVID-19 so that you can self-isolate.

Personal Safety Precautions

You’re ultimately responsible for yourself in avoiding COVID-19. While going through your building, whether it’s to leave or to come home, it’s important to sanitize your hand and wear a mask. Elevator etiquette has changed in the COVID-19 era, and it’s important to understand what new etiquette entails. 

Personal Sanitation and Wearing a Mask

Standard COVID-19 measures should apply in your condo building, even if it’s your “home”. This means you should avoid touching anything and everything. To open a door or press a button, carry a napkin so you don’t have to touch the object. Your shirt sleeve or elbow will work too – as long as you’re using something that doesn’t make contact with your face. Furthermore, though, ideally, your condo building has hand sanitizer stations around key areas, it’s always better to carry your own bottle.

When you’re in the lobby or a common area of the condo building, make sure to wear a mask. Some cities are even taking steps to mandate mask-wearing in condo buildings. Your mask shouldn’t come off until you’re in the comfort of your condo unit.

Elevator Etiquette

Elevators have been a key concern in the COVID-19 era. Elevators don’t allow for social distancing due to being confined in a small box with multiple people. Others may have also contaminated the area by touching buttons or holding onto railings.

Again, it’s important to avoid touching buttons with your hands. Your hands may touch your face or rub your eyes, which can allow the virus into your body. If you see a crowded elevator that won’t allow for social distancing, it’s better to take the next one or the stairs

Although you’re used to your whole condo building being your home, be cautious during this time. Learn about your condo building’s initiatives to protect its residents by emailing or calling management. For yourself, assume that everything outside of your condo unit is infected with Coronavirus so that you’ll take the necessary precautions.

The post How to Protect Yourself from COVID-19 if You Live in a Condominium first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

In this article, we discuss the myth behind a COVID-19 recession resulting in the 2008-level real estate prices. We also provide some reason why now continues to be a good time to invest in real estate. Lastly, this article reflects on somethings to keep in mind for purchasing your first (or second or third) investment property. 

The Myth that Any Recession can Burst the Real Estate Bubble 

It’s often conventional wisdom that housing prices will decline during a recession, but this isn’t the always case. The 2008 financial crisis originated from subprime mortgages and the U.S. property market, among other factors, caused the decline in housing prices and subsequently the greater financial disaster. 

Subprime mortgages are not the reason for the possible recession that Canada could face. Now, the cause is the COVID-19, so it’s not likely that real estate prices will be affected as much as they were in 2008. Many experts across Canada believe that real estate prices may decline 5-10% at most due to COVID-19. Even though, until now, this hasn’t affected the market: monthly numbers from real estate boards across the country have continued to show a steady average price of the homes sold. 

COVID-19 is leaving many unemployed, reducing immigration to Canada, and providing us with economic uncertainty. However, the pressure exerted on the housing market by these factors is limited. Other COVID-19-related events, such as the slowdown of new housing constructions, are exerting upward pressure on real estate prices due to reduced supply. Further, if Canada can reopen its economy successfully and safely, the recession could have a smaller impact. 

Why You Should Consider Investing in Real Estate Anyways

The stock market’s prices have been jumping up and down due to on-going news about the Coronavirus. If you’re looking for a bit more stability in these unprecedented times, then residential real estate may be a good bet. 

As an income stream, real estate is relatively secure during a recession. Tenants will generally continue paying rent as they still have a legal obligation to do it. In contrast, a company whose stock you purchased may cut their dividends or the stock may see a sharp decline in value. 

Interest rates in Canada are still low, as the Bank of Canada attempts to stimulate the economy. This may reduce your cost of borrowing to purchase a home. If you can lock in a good mortgage rate for an investment property at this time, it’ll result in a better return on investment and cash flow down the road. 

A Few Best Practices for First-Time Real Estate Investors 

Just because now is a good time to invest, doesn’t mean you should jump right into any property you can get your hands on. If you purchase an overpriced property when you aren’t doing well financially, it could hurt you more than it could help you. 

Calculate your Cash Flow

In the world of real estate investing, cash flow is king. Cash flow is what you’re spending (cost of monthly mortgage payments and repaying other debts associated with the investment property) versus what you’re taking in (usually rental income). If you have a positive cash flow, you’re on a good track. Before buying an investment property, it’s important to run the numbers…. And, then, run them again to make sure you didn’t miss anything. When calculating your cash flow, make sure to ask yourself these questions:

● How much will your monthly mortgage payments be? 

● How much will renovations cost? 

● How much can you rent out the property for? 

● What happens if you can’t find a tenant to pay the price you’re looking for? 

Assess your Financial Position

It would be best if you also looked at your financial circumstance. Just because you have a good job today, doesn’t mean you’ll have one tomorrow. Especially not in the era of COVID-19. Would this investment still make sense if you were laid off or furloughed? Similarly, if you’re a business owner, could you manage the investment property’s mortgage if we face a second lockdown? Although residential real estate tends to be a safe investment, it’s essential to judge your financial position before committing to a purchase. 

High-Quality Properties in a High-Quality City

Finding the property with the lowest per-square-foot cost is usually not the best way to go. To find an investment property that will provide consistency in economic uncertainty requires buying in a high-demand area, even if it’s more expensive. This can better guarantee renter demand. 

Further, fixer-uppers are often of great value. You can renovate the property and get an even larger return on investment, however, there are some fixer-uppers you want to avoid. Properties with water damage or structural problems are often ones to avoid, especially as a first-time real estate investor. Even some veteran real estate investors stay away from these properties. 

We’re unsure if COVID-19 will bring a full-blown recession that’s as devastating as the one in 2008. However, it’s highly unlikely we’ll see the same kind of decline in home prices. Nevertheless, it may still be a good time to invest in residential property. Investment properties can provide a consistent income in times of uncertainty. But if you are a first-time investor, make sure you figure out your cash flow, assess your financial situation, and choose a high-quality property before making such a financial commitment.  

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