How does Instagram impact the home buying process in Oshawa?

By Lindsay Smith/Real Estate Columnist

The year was 1984 and I went against the bank’s recommendation. Let me explain. I placed a conditional offer on a condo in Oshawa. The bank said I was fully qualified to purchase and live in the condo, however, I looked at my situation and thought otherwise. So, I rented. Well, that is not the entire story, I found a one bedroom flat above a home on Cadillac Avenue and went ahead purchasing the condo. The condo I bought had a tenant that I assumed. He was a lovely man who taught me so much about the Landlord and Tenant Act of the time. I was both a tenant and a landlord at the same time and the experience on many levels was priceless. The condo turned out to be an amazing entry into the real estate market and I ended up selling it after two years, using the equity from the sale of the condo to purchase a home that I lived in along with a tenant in the basement. It was five years after purchasing my first property that I finally moved into a place that I owned with no renters in the property.

The reason I share this is, this was not what I wanted. It was what I felt I needed to do to get my foot in the door of home ownership. In 2021, I am pondering if expectations are getting in the way of people entering the home ownership game. Expectations, peer pressure or “gentle” nudges from family, I am curious to see how outside influences are impacting the buying process.

No question, real estate values have skyrocketed. I regularly read articles, blog posts and editorial columns on real estate to keep informed, and I see people, on a regular basis, venting, arguing and sometimes yelling about what is happening to the values. What doesn’t help are the many headlines making predictions or “cherry picking” statistics to pander fear to the public. Let’s remember – fear sells. Rarely do families make headlines that purchase a property, make extra payments to shorten the mortgage or successfully move up to a larger home. Alas, this is not newsworthy.

One of the changes I have seen happen in real estate in the past decade seems to have shaped how first-time buyers view property. Think Pinterest, Instagram and HGTV. These platforms show homes renovated, decorated and staged perfectly. Quartz and granite counters, lovely backsplashes, high-end appliances, spa-like ensuites, and pools perfect for a Victoria Secret photoshoot.

Watching the faces of first-time buyers when they walk into homes in their affordability range shows the range of emotions that emerge when reality hits home. This is when reality clashes with Instagram.

Here are some hard facts about values for detached homes in Oshawa: Oct/2020 $685,000 to April/2021 $858,000. When the values increase $173,000 in six months, most people simply cannot out-save the market. The real estate market currently is a “get in any way you can” market. When a buyer begins to look at what is available, the Instagram myth quickly disappears. Not all homes have the upgrades that are shown online and the ones that do, come at inflated costs.

Getting a “foot in the door” doesn’t mean a home with dirt floors, leaking shingles or siding onto the 401, it means finding a home that will make a good home, in a good area, and has the features that you can live with and can upgrade over time as you watch the value rise.

My advice to buyers, especially first-time buyers, is to buy a home in the best area you can afford. In a busy market such as we are experiencing currently, I am seeing homes being sold in areas that, once the market slows, will be challenging to sell. Area is one thing renovations cannot change. Next, buy a home within your affordability range. There is nothing more deflating than living in a home that needs improvements, being strapped financially not able to upgrade. Another option would be to look for a home that has a legal accessory apartment to help offset the costs of home ownership. When you decide to move, a duplex will appeal to not only homeowners such as you, but also to any investors looking to rent the entire home out. A last thought would be to consider a condominium. Some people shy away from condos feeling that they will not increase in value as detached or semi-detached homes will. To that I would add, a condo sold recently that was a similar one I sold in the same building last summer. This last sale was for $160,000 more than the one I sold in 2020. Condos are an excellent investment.

In the end, getting into the market is important. Once you are in the market, you have an investment that will rise with other homes allowing you to move up, move out or cash out when you feel the time is right.

Instagram, Pinterest and HGTV are great platforms to dream on. Just remember, every home you drool over was once a bare bones subdivision home or a 1950’s bungalow with gold appliances and green bathroom fixtures prior to the reno. Just think, getting in allows you to put your own personal touches on your home, and at some point in the future, a renter dreaming on Instagram will look at the images of your home wondering if they can ever afford a home like yours.

It all starts with being realistic, honest and having a dream. With those tools in your tool kit you will wow Instagram. It may be a few years down the road, but millions before you have made the journey.

If you have any questions about the above information, or if you see a real estate emergency on the horizon, I can be reached at lindsay@buyselllove.ca.