47: Navigating Your First Home Purchase with Talia Thomas
Aug 03, 2023
Carolyn
Get ready to understand the complex world of real estate, especially for first-time buyers, as we welcome Talia Thomas, a rising star among Toronto realtors. Promising to provide not just knowledge, but guidance and clarity, this episode is packed with practical advice for the aspirational homeowner. Talia gives her take on the current state of the GTA real estate market and offers a roadmap for those looking to make their first purchase. The episode starts off by stressing the value of financial readiness and the role of a well-planned budget, with Talia sharing her insights on these critical first steps.
Sounds daunting? I've got you! The episode also covers several government incentives like the Home Buyers' Plan and the First Time Home Buyers Incentive to help soften the financial blow. Talia opens up about the most affordable housing options across Ontario and suggests smaller cities as potential alternatives. More than just buying a house, it’s about achieving your financial goals and Talia shares her wisdom on setting these goals and the importance of a solid plan to realize them.
Ready to turn your homeownership dream into a reality? Tune in and let's get started!
Get ready to understand the complex world of real estate, especially for first-time buyers, as we welcome Talia Thomas, a rising star among Toronto realtors. Promising to provide not just knowledge, but guidance and clarity, this episode is packed with practical advice for the aspirational homeowner. Talia gives her take on the current state of the GTA real estate market and offers a roadmap for those looking to make their first purchase. The episode starts off by stressing the value of financial readiness and the role of a well-planned budget, with Talia sharing her insights on these critical first steps.
Sounds daunting? I've got you! The episode also covers several government incentives like the Home Buyers' Plan and the First Time Home Buyers Incentive to help soften the financial blow. Talia opens up about the most affordable housing options across Ontario and suggests smaller cities as potential alternatives. More than just buying a house, it’s about achieving your financial goals and Talia shares her wisdom on setting these goals and the importance of a solid plan to realize them.
Ready to turn your homeownership dream into a reality? Tune in and let's get started!
Hello everyone. My name is Carolyn. Welcome to the Saving for your First Home podcast. I am the CEO of the Financial Moment. We offer money coaching for those who are ready and willing to make financial changes in their lives. For the most of us, there comes a point in time where we think to ourselves it would be really nice to own property, but it sometimes can feel like a pipe dream and not very easily obtainable. So I created this podcast to give you all the information and tools you need to take the steps forward toward home ownership. Take it from me my husband and I started our lives together, working part-time jobs with a young child. Fast forward, through many hiccups and failures, we stepped our feet into our very first home. For us it was a pile of dirt, but eventually our family home was built on that dirt. Now we are in the midst of growing our investment property portfolio. I created the savings for your first home podcast to give you easy, actionable tools for you to do the same. If you have that same gut feeling that I did and want to create a life for yourself and your growing family, but don't know where to start, you are in the right place. Let's do this. Hello, welcome back to the Saving for your First Home podcast. I'm Carolyn, your Money Coach.
Speaker 1:
Today's episode is a special one because I'm interviewing one of Toronto's up and coming realtors. Her name is Talia Thomas, and why I thought I'd bring her on the show is that she really brings a fresh perspective and innovative approach to real estate. Like for her, it's not just about the transactions, it's actually about helping individuals and families find the perfect place to call their home. So today I'm going to ask her some tough questions and I hope that Talia will share her insights on how to navigate the GTA real estate market during this kind of uncertainty and change in today's economy. So let's jump right in and welcome Talia to our show. Hello, thank you so much for joining us on the Saving for your First Home podcast, talia. We're excited to hear all about the knowledge that you have about real estate, about buying homes, because our listeners are first time home buyers. So welcome again to the show. Thank you so much for joining us.
Speaker 2:
Thank you so much for having me. I'm really excited because I want to make sure that they're prepped with everything they need for it first time home ownership.
Speaker 1:
Yeah, exactly what I'm hoping for this episode is going to be is like a home buying hack, right, so that they can come back and listen to it and get all the information and stuff that they need to actually go through this process, because it is a lot of learning for first time home buyers who have never had any experience in purchasing a home. So let's just jump in. What are some of the key steps that you think are important for buying a home and how do you prepare for that?
Speaker 2:
Absolutely this is a great question and it's true, you don't know what you don't know. I'd like to start by saying not every process is for everyone. So I kind of like to use this like kind of a guideline and you can go back and listen and see if it applies to you, because not all clients, not all buyers, first time home buyers are the same or at the same stage in their buying process. So I think the biggest thing is home ownership is seen as like this really amazing thing, which is truly it. There are great benefits to it, but you have to really decide if it's for you. So I think the first thing before you dive in is decide if home ownership is actually right for you.
Speaker 2:
After doing that, you really need to assess your budget. So start looking at home auction as a first time home buyer. Are you doing this on your own or do you have help from parents, grandparents, some sort of saved money or something that you'll be gift with? So I think the biggest thing is knowing what your budget is, kind of exploring around, what are you looking for, how many bedrooms, what kind of fits your family, and seeing what a long line works for what you've saved up for. So the biggest thing is make sure you're financially ready to own a home. There's a lot more than the down payment as a first time home owner that goes into it.
Speaker 2:
Another thing is determine if the price of a home like what you can afford. You never want your first home purchased to turn into a nightmare because there are unexpected costs that you didn't think of. So I think the best place to start is just assess where you are right now and where that guides you to your home ownership process. Really importantly, too, is pay down as much as you're got as you can. I don't want to see it. It was going for a first time home and they're like really excited but they also just recently maybe purchased a new car. Those kind of things do affect you. I have a great like mortgage people around me financial people like yourself that can kind of explain exactly into details why that would affect anyone going for their first home. So definitely your budget, knowing if you're having health, and make sure your debt's down.
Speaker 1:
Yeah, those are amazing points because we talk about that on our podcast a lot about the steps you take even before you think about buying a home, and you know creating a budget. That's you know my language, my love language. You know creating a budget, being prepared for unexpected things and obviously people are saving to create their down payment, but you know that down payment could come from lots of different sources and lots of different mechanisms. So it's very what you're saying is hit it right on the nail, because we talk a lot about the preparation part even before you decided to buy a home. So really important, absolutely. If you're anything like I was.
Speaker 1:
Staying on top of your budget is not an easy task. Paycheck to paycheck would go by, and you're no further ahead. For my listeners, I am giving you this free guide that is going to take you to the next level. It's got 10 easy tips to follow to help you stay on track with your budget. Just head to thefinancialmomentcom backslashbudget-tips, enter your information and you can download this guide right now. All right, so how can someone determine the right timing to enter the real estate market, right? I mean, we are in some very interesting times now with interest rates and the market conditions. How do you know like what to do? You wait, do you go now? Like what do?
Speaker 2:
you do? Yeah, okay. So I like this question. It comes up a lot. There is no perfectly right time.
Speaker 2:
Everyone has their own market. So even though for some people this is not their market, but others it is and this is a great time for them to enter the market, I never want anybody to listen to all the news and not have the proper advice that they're so like, clouded by everything that everyone's saying they don't know what direction they're going, when this was the market for you and you might push yourself out of the right market for you. So I think the thing everyone has to assess is your criteria is not like somebody else's. Someone who is having help with their down payment is not the same with someone who saved up and maybe this is as much as they saved up and that's as much as they can touch right or people going in with family, et cetera. So I think the biggest thing is to research the market, or research the market in a way that you're also talking to people around you. The current trade in the market is a very specific area, so I know a lot of people are comparing it to COVID, you know, and things were just not realistic. We had at my brokerage. Actually, a financial advisor come in and talk and he said you know, time rate is typically it ranges from 3.5 to about five, like that's normal, and so what we were seeing before wasn't normal. So I think the biggest thing is to kind of research the market. The specific area you're interested in has a lot to do. Look at trend, but remember there is no crystal ball that's going to tell you the perfect time to enter the market. So if it's for you and you find that you can afford this, don't pass up the opportunity because you can quickly get pushed out of that particular market.
Speaker 2:
Monitor interest rates. You know it's not the happiest thing to monitor all the time, but it's good to keep a price to that information. So keep an eye on it. Right now the primary rate is 6.95, I believe Today, yeah, it's getting up there, but there's a relationship that works with how much you put down versus when you're in a market with higher interest rates.
Speaker 2:
Assess your financial situation. Not everyone's financial situation is the same. Evaluate your income, your savings, your credit score, how much you would need for a downpayment or a particular home. You're looking for your monthly mortgage payments, property taxes, maintenance, saving for anything that might come up in the home. Also, assess your long-term goals. Only a home for you to really build your equity. You have to be in there five to seven plus years. So really assess your long-term goals and determine if they fit with the financial plan of right now.
Speaker 2:
And, of course, always consult with professionals. I have a great network. I like to keep a price to my different mortgage lenders, whether they're A-lenders or B-lenders. I have a great network. I have people that are willing to just have conversations and inform people. You don't know what you don't know. Again, that's going to be my thing. So consult people. There's so many avenues. We have social media. Reach out to someone on social media Instagram, tiktok. A lot of people are really willing to talk to you about things like this and then just stay updated and be patient. I think that's the biggest thing. There's no rush Home ownership. You can be a first-time homeowner in your 20s, in your 30s and you're still a first-time homeowner. There's no rush, that's my best advice.
Speaker 1:
So many great points there. One thing that resonated with me was that picking your neighborhood is probably very important, because, like you said, if you want to stay in your home for five to seven years, you have to be sure that that is the neighborhood that you want to be in. So that really resonated, because, as a first-time home buyer, your budget is probably going to be restricted. You've taken so much time to create that down payment that a lot of your money is going out of your pocket into this home and so, unfortunately, in Toronto the housing prices are super high, and so people have to be realistic. Do you mean that you don't live in the heart of the city and it just means Absolutely?
Speaker 2:
That's one of the biggest things and that I think pertains to your long-term goals. Is it a long-term goal for you to be in the heart of the city in the hustle and bustle? Do you need that? If you have a car, do you necessarily need to be in the heart of the city? There's a lot to assess and make it fun. I think that's my biggest thing that I didn't say yet Make this fun. Make this a fun experience. Have fun with coming up with a budget. Oh, I like this about my budget. Make sure it feels good. Don't do anything that doesn't feel good. I think that I should have really started by saying that Make sure it feels good and make it fun. This is supposed to be a great time in your life. Make it fun, exactly.
Speaker 1:
Exactly. You take those trips to visit the homes and you're like oh yeah, like this, I like that.
Speaker 2:
Of course, Of course, of course.
Speaker 1:
And that's kind of how you've actually determined probably what you really want anyways.
Speaker 2:
Right, that's absolutely it, and it's something that you finally manifested coming to life, so enjoy that.
Speaker 1:
Enjoy the process for sure. So we talked about being a first time home buyer and coming up without town payment. So are there, or do you know of any government programs or incentives that can help out a first time home buyer if they're saving for their home?
Speaker 2:
There were quite a few. I try to go to the website often because they do change. There's a lot of incentives designed to assist first time home buyers and you have to find the one that fits for you because there are different implications with it and whether you qualify or not, they change over time, like I said. So like it's good to check what it is. There's a first time home buyers incentive, which is like 5% or 10% of a first time home buyers purchase of a newly constructed home and, for the first time home buyer purchase of a resale or an existing home. There's the new FHSAs that just came. So the first time home savings counts. It's a registered plan and put money in there. You're not penalized for taking anything out, which is really great. Again, always check the regulations because there's only a certain amount you're allowed to put in at a time during, like the fiscal year Home buyers plan, the HBP. That is a plan. That's also another registered plan, but it's kind of like taking money out from your retirement savings plan. So, again, there are stipulations where you have to put it back and like there's a certain I think it's like a 15 year period for any tax implications. There's the first time home buyer incentive that one, the government has a shared equity in the property. Also, first time home buyer tax incentive. So that's a credit to help first time home buyers with some of the costs associated with, you know, purchasing the first home.
Speaker 2:
Again, there are stipulations that come with each of these. When you research them, you really want to be careful to make sure that if you're predicting that this money is coming to you, that you're sure that this is something that you qualify for. There are things that limit you from being able to do it. There's land transfer tax rebate and there's also different provincial programs. So right now I'm here in Ontario. There's provincial programs that we have here but that we wouldn't necessarily have out in, like Alberta, and things like that. So it definitely depends on where you are and I'd say the biggest thing is again top to professional or visit the government website. There's also a lot of like courses and like things you can go to for those who are thinking of purchasing their first home. There's a lot of things that's in the community that I would say they're not necessarily government incentive but they're still a really good help for you to keep a price of what's going on.
Speaker 1:
Yeah, it's a lot. There's barriers in our way because there is a lot of help out there to actually kind of step foot. And so he I'm guessing what I'm hearing from you is to ensure that you qualify, and some of the things that you can do, I'm assuming, to prepare for that is making sure your credit is good, making sure you have the right amount of money and down payment, whether you invested into an RSP or different functions like that. So that is the preparation and the research that people need to do before they're in and and search out. So I will link that website in my show notes for the government website just so that people can go and start doing the research.
Speaker 1:
Right and that way people can get a head start on that. Oh, all right. So since we are both in the T dot, are there specific areas or neighborhoods that you think may be affordable for first time home buyers?
Speaker 2:
Okay, so here's what this. I didn't do a specific to Toronto because I find that a lot of Toronto buyers are going outside of Toronto. So again, this is something like there's a few areas that have historically been considered better for first time home buyers, and I wouldn't say neighborhoods in particular, because neighborhoods and the markets change very quickly. So I feel like by the time we record this that could very well change and there are factors such as something within the neighborhood got a certain amount for their house. It can either bring up the prices or if they kind of went under to try and go under to see how many offers they would get, that also affects prices. So I thought I would approach it in a different way, to kind of go with I did a video on this, actually on my tick to our bell and go with like Canadian.
Speaker 1:
City. I can link that here too.
Speaker 2:
Yeah, I will link you under that Canadian cities that are most affordable housing and this was based on like a Narsity article. There were St John, new Brunswick the house is ranging in the 200, like mid 200,000,. Saskatchewan, 310 and up. Quebec, three like we're around like 16, three Winnipeg, manichail, but we're at like 329, 9,. Edmonton, alberta, like in the mid 300s. Sudbury were more at like the 400, like still under half a million, and Halifax were at under half a million again.
Speaker 2:
So there are other options outside of the city, like the city of Piedot and you know the province of Ontario. But I found that the biggest thing if you really do want to stay and if you found that remaining within the GTA is good for you, I find for first time home buyers is probably like the suburb and the outskirts, so not really like the inner city. If you can find a neighborhood outside, especially if you have more of a strict budget, definitely suburb areas located outside there offer affordable housing options. Cities like Brampton, mississauga, oshawa, as compared to the GTA, like the great Toronto area, kitchener, waterloo, hamilton. But again, I find that recently in this market a lot of those places that were once like really affordable have been affected by Toronto prices.
Speaker 2:
So, if I'm keeping it completely transparent, there are pockets like I wouldn't even say within the great Toronto area. No, there's pockets outside in the suburbs. But again, don't be surprised when you start realizing that the GTA has really affected those home prices. Emerging neighborhoods are another one that are like historically kind of good. It's not kind of built up yet, so it has it hit its potential. Those are always great because the equity can build in those neighborhoods is absolutely great. And again, smaller cities in town. I don't say this often, but I grew up in London, ontario, so I take a look at their house prices a little bit, just considering and I'm like you know, am I going to stay in the GTA?
Speaker 2:
or like you know you might head back there. So, yeah, Ontario has several smaller cities with great housing prices that tend to be more affordable compared to, like, the major urban cities London, windsor, kingston, berry, st Thomas Like I guess the biggest thing is affordably can vary depending on, like individual circumstance, desired amenities, what do you want around you, your community preferences, your personal preferences. So it's it's really important to consider your needs and, again, consult a professional is OK. We want you guys to talk to us. We want you to talk to us so we can show you things that maybe you didn't even consider. Right?
Speaker 1:
Absolutely. The GTA is an interesting place now because a lot of areas are connected by transit. So, as you kind of need to go out to like London, Kingston, St Thomas, like you were mentioning, you know the GO train is actually running to these places now and so, coming in for the city on the weekend or doing your thing, it's very possible right.
Speaker 2:
It's very possible and even if you continued depending on, again, your preferences. I know a lot of people who live outside, got amazing prices for the home and love taking the GO train because they have time to like just kind of ease into the hustle and bustle of the city. They have time to read in the morning. I don't know how many people are saying they have like.
Speaker 2:
I mean break the time for it but, like you know, you can read on the GO train, you can catch up with whatever you need to before you actually get back in the city. So I think it really comes down to personal preferences and what you've budgeted for, Like what are your criteria? Please go back and focus in back on that criteria for yourself.
Speaker 1:
Yeah, and I think it takes away the helplessness that people are feeling right now because they feel like, oh, you know what? Interest rates are high, the housing prices are high. I have no hope for any opportunity to buy a home. But it's about the creative thinking and it's about what it is that you truly want and you know you may have to give up something here, but then you're going to gain over here, and it doesn't mean that you can't end up back in the city center five years from now.
Speaker 2:
Yeah. So again goes back to making sure it feels good. So when you're doing this and that's why you always want to consult with somebody, because maybe they have something that you haven't thought of yet it's really great to get that advice and like plug you into something that your mind hasn't even gone to yet, to make it seem less bleak and like more of a really exciting experience for you. Definitely both of that. Talk to your network, talk to the professional, talk to people that are really willing to help people.
Speaker 1:
Yes, yes, definitely. And again it goes back to our research. Right, you know, you talk to people, you can hear their things and you shuffle it out Absolutely.
Speaker 2:
Absolutely.
Speaker 1:
All right. So now it's all about the timing right. People say that you know, spring may be better to purchase or fall. You know, is there really like something like that? Does that exist? The timing factor?
Speaker 2:
Okay. So again, we talked about this earlier. I feel like people feel like there's some sort of crystal ball that us Asians look into sometimes, yeah, and we really don't. We really don't. We really focus in on our clients. That's what our job is to really focus in on you and understand you, your motivations, your needs, your criteria, you as a person.
Speaker 2:
The way I approach real estate is very different in the way I wanna get to know my clients really well. I wanna know how your kids are doing. I wanna know how your week went. I wanna know all the things that actually affect this transaction. We always know that the real estate's coming, the transaction is coming, but I like to focus in on a very mindful place for my clients, like how are you doing?
Speaker 2:
I think the biggest thing with this is it has to be right for you as an individual. We're all coming from different backgrounds, different walks of life, different plans, financial background, et cetera. If it's right for you, do it. There's no perfect timing. There's doing your research. There's falling through. They're saying you know, I've been looking in this particular neighborhood or at this amount that I've saved up and I've been pre-approved for this amount, when it works for you and everything. Things have lined up, the main essential things your debt down have lined up for you, then that allows you to make educated you know guesses. Research allows you to do that.
Speaker 2:
I think that it's gonna be always a good time, but maybe not perfect. It depends on your debt service ratio, your savings plan through your future. When I was matching to the homes you want, maybe right now your budget is not matching to the homes you want. So when those things are happening, I just say go for it. Talk to a realtor, see what's out there, and maybe they'll even say that at this time and based on what you want, maybe we should take a little bit of a pause, but that I just feel like everyone's waiting for this, like when our interest rate. Don't wait for that because we don't know what's gonna happen. We can make educated guesses, but there is no crystal ball that is going to tell us what's gonna come. We don't know. We're all doing the best we can, but if this is for you, go for it. Like, let's go for it, be happy and ready to go for it.
Speaker 1:
Yeah, exactly, especially on this podcast, we talk a lot about preparation. If you have the right amount of money set aside and you've figured out how much it is going to cost you to actually live in that home, then timing actually doesn't matter, right? Because you've made those decisions, you've figured it out and the amount of money you need is there for you. Absolutely. Hasn't this interview been great? Talia has really broken down some of the key important steps in the home buying process. You know we talk timing and factors like interest rates and market conditions and the government program incentives. So I really hope that you took a lot out of this interview and because it's so jam-packed, I broke it into two episodes.
Speaker 1:
So next Thursday I'm going to release part two of this interview and we're going to hit on things like what are the costs additionally to having a down payment saved? How do we evaluate and compare properties to find the best fit for our budget? And then, really, what is the role of a real estate agent? How do they help us Some really important questions that we're going to hit upon next week. I hope you really enjoyed this interview and don't hesitate to reach out if you are in the process of saving for your first home or you're saving for one of your important financial goals? Hit me up. I'm here to guide you and help you manage your finances so you can reach your financial goals. You can always email me, check out my website or DM me on Instagram. All that information is in the show notes. Take care and we will see you next week. Thank you for listening. We are committed to helping you place your very first steps into your new home. See you next time.