By: Matt Busch

The best time to buy real estate was yesterday!

Tags: calculate lost time in the market

It's no secret that real estate is the key to building wealth, so why are we afraid to dive in and take the plunge? Maybe it's the what if, and the risk factors. Were here to tell you that if properly applied tactics to either an investment portfolio or your principal residence are applied then you can set yourself up for long-term financial success. 

Based on some simple calculations we know that for the average household earning an income of $200,000 they would likely be able to obtain a mortgage in and around the $1,000,000 range, combined with down payments they are looking at a purchase price of approx $1,200,000. 

Let's apply that against what the market appreciated last year, and what a moderate prediction is for the future. 
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Imagine you could have had some foresight to know that the 2021 GTA housing market was going to increase at an average rate of 17.4% annually, or 1.4% monthly. When expressed as a calculation for the increase in value that's where it gets mind-blowing $15,917 PER MONTH, a whopping $191,007 annual increase.

Now let's use some more moderate numbers. 

Let's imagine that in 2022 the average GTA price point increases at a rate of 9% annually, applied against the average price for December 2022 of $1,092,212 that equates to $8,191 Monthly or $98,299 annually. 

What I want people to think about when looking at, and trying to understand these numbers is very likely will never be able to save at this rate. 

My ultimate suggestion to anyone contemplating making a purchase but not being able to afford what they "want" is to get into the market now for what you can afford, and progressively upgrade as you build equity as the market increases.
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