Without a doubt, it is financially easier to buy property by combining your income with that of someone else, but do not let a single income discourage you from looking into the option of buying real estate on your own. If you are a single woman looking to buy a home, we offer you some information to consider.
Woman In Toronto Street By Ian Muttoo
Mortgage
According to Dianne Usher, president of the Toronto Real Estate Board,
“There are no obstacles. Single women are way more adventuresome than they used to be.”
And she is right. Obstacles like qualifying for a mortgage with a single income is no longer an issue, and Usher is confident that
“women could get more [money] every day of the week right now.”
So, with that in mind, find a financial institution and start the conversation. Don’t just stick to one institution, either — shop around. After all, they are the ones who should be chasing you — as of 2012, it was believed that 20 per cent of homeowners in North America were single women.
Will You Be Accepted for a Mortgage on Your Own?
When considering buying a home in Toronto, your financial situation will obviously come in to play. If you qualify for the mortgage on your own, chances are you are doing okay financially. But what comes before that? Real estate agent and host of HGTV’s Buy Herself Sandra Rinomato tells it how it is:
“Home ownership is your right as a Canadian. Rejoice! Now, plan for it and execute that plan. That means, save your down payment, plan out your budget, figure out how much you spend and how much you can realistically save.”
This is your first step. She continues,
“Determine what expenditures you will sacrifice and which ones you will not. Be honest with yourself. It’s your life, nobody else’s — so do it your way. Know yourself and know your needs and your desires.”
It is not just about applying for the mortgage and buying the home. Single women need to plan out their finances and make the choice to save long before they decide to purchase their home, just the same as single men.
Single women will sometimes purchase a home because of its potential for extra income. The ideal situation is to qualify for a mortgage based on the last three years of your income. This extra income means the single woman does not depend solely on the income of a job — this reassurance brings to light the idea of defensive financing. It is always smart to be defensive in planning out your finances, as jobs are not always permanent, and extra income like this can provide a bit of a safety net.
Rinomato’s final word of advice in this area?
“Hire a professional realtor to help you.”
Should a Single Woman Buy a House or Condo?
A professional realtor will help you figure out exactly what you are looking for in your home. According to Rinomato,
“Women tend to look for the opportunity to grow in the space, i.e. two bedrooms when they are the only person living there.”
The TV host advises against this and says women should look to meet their immediate needs and budget. She explains,
“So if a two-bedroom is too expensive right now, don’t miss an opportunity to become a homeowner. Buy the one-bedroom, and if you ever end up needing another bedroom, trade up. Buy what you need now.”
First-time owner Jessica Gyll did exactly that. She says,
“I knew right off the bat that my money would only get me a certain size condo (one-bedroom or junior one-bedroom), so once I accepted that it would be a small space, I looked more at location and the condo building itself.”
Usher explains that women do have different concerns and considerations than men. When it comes to condos,
“Women are concerned about security, safety, amenities. They like [having] the concierge, well-lit parking garages, parking spots close to parking exits. Safety is a big issue.”
Is it Good to Invest in Real Estate?
Having grown up in Toronto, Gyll knew what she was looking for:
“I wanted somewhere downtown, accessible, and close to other amenities like grocery stores, gyms, shopping, et cetera. I also wanted a place that I could easily rent out if I needed to.”
The idea of renting out properties for extra income is another benefit to buying real estate.
“Women that are financially astute realize the benefit of real estate as a long term investment,”
says Usher. She adds that many women will buy because it is
“a long-term way to develop some equity growth — it’s been proven over and over again that it’s better than the money markets.”
How to Find the Perfect Neighbourhood?
When you are buying a home in Toronto, the list of unique neighbourhoods is endless, but there are certainly aspects of the area that you should consider. According to Usher, single women will look to buy property in established neighbourhoods versus emerging ones, which comes back to the idea of buying a safe home.
Big neighbourhoods for single women right now are Riverdale, Cabbagetown, The Annex, King and Queen West (for condos especially), the St Lawrence Market, Leslieville, and Corktown. In contrast,
“the worst place for a woman to buy is in an area where she feels like an alien,”
says Rinomato.
Cabbagetown Street In Bloom By Kiril Strax
Gyll did put consideration into the location of her property, for a few reasons:
“The place I ended up buying is a newer condo (less than five years old), and close to my parents so that if I ever do rent it out (and move abroad), they are close enough to be the landlords for the tenant.”
Gyll bought a condo near Queen Street and Jarvis Street, just around the corner from the St Lawrence Market and a close walk the Eaton’s Centre at Dundas Square.
Neighbourhoods like those listed above are popular areas for single women right now, but Rinomato adds,
“Every woman is different. Some want to be suburban and be in an area filled with young families because they want that traditional space, the kind with three bedrooms and three bathrooms, a garage, and a yard. Then you get the ones who want to be as far away from that as possible. They want to be where the action is, close to trendy cafés and clubs, shops, and restaurants. They want to go out their door and be in a busy urban area with a completely different vibe from that suburb.”
Again, what it really comes down to is knowing what you want, understanding your financial situation, and getting what meets your needs.
