How this 22-year-old bought a $1.3 million home in Brampton, Ontario.
The National Post spoke to Gen Z and Millennial homebuyers about how they were able to buy their first home
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Or: Brampton, Ont.
Original budget: $1.2 million
Sumi wanted to buy a condo in Toronto and rent it out through Airbnb to generate passive income. After looking at the cost of condos in Toronto, he opted to look for a home closer to home in Brampton that he could live in.
“Slowly realizing the price between a condo and a house, it made sense to buy something before construction, wait a bit and then you’ll get some equity,” he said.
Sumi works in the film industry and said it was important to supplement her income and invest in real estate. He had even considered working with friends to buy and flip houses for profit.
Once he decided to buy a seat, his father entered into the business with him, and they split the cost 50/50.
After three months of searching, he found a pre-construction house. “I haven’t done any in-person tours or anything like that because I want to make pre-construction investments. For example, I still couldn’t really see the house that had been built. And I felt like it was the smartest way to get a house without spending over $2 million.
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He ended up paying $100,000 more than the asking price for a total of $1.3 million. He completed the sale in 2020 and took possession in July 2021.
Saving money to buy the property took time and a lot of hard work, Sumi said. Throughout the pandemic, he and his father have become workaholics, prioritizing work over most things. They also ran a business together. They set a tight budget and tried to put as much savings as possible on their work around the house.
“I had no work-life balance. I did a lot of work and slept little,” he said.
It was not easy and getting a mortgage was complicated.
“Seeing people say it’s hard to have a house, it’s hard. Like, I lost half my hair, like, trying to get a mortgage for this. It was so stressful. I agree with a lot of people, it’s tough and sucks with market values soaring.
Sumi thinks it’s possible for millennials to own their own home. Even if they can’t get help from a family member like him, starting small is the first step.