No matter where in Canada you live, the housing market isn’t what it used to be. And, if you’re trying to buy a property here in British Columbia—either your first home or a larger space for your family—it can be incredibly challenging. Even with a healthy household income, there are no guarantees—prices are high, inventory is limited and bidding wars may drive up offers. If you don’t have the budget to bid on what’s out there, you may feel like home ownership is out of the question. That’s not just discouraging—it can lead to real concerns about your financial future and, because a home is typically the largest asset one owns, your eventual retirement.
Becoming a homeowner isn’t necessarily easy, but we don’t want you to give up. Here are some different strategies to consider if you feel priced out of the housing market. Please reach out to an Interior Savings branch in your region to be connected to an expert who can offer personalized advice. We’d be pleased to hear from you and start working toward your goals.
Expand your search area
If you cannot afford to buy a home in your current area—particularly if you live in or near an urban centre—consider expanding your search area to include more affordable regions. In this scenario, it’s critical that you understand and are comfortable with the trade-off involved. If your main priority is owning a home in a safe, appealing neighbourhood with nice amenities, you should definitely consider expanding your search beyond your current location. There may be plenty of incredible, more affordable opportunities an hour or so away from where you currently live. However, if you have strong ties to your current community, you may not be willing or able to make that trade. Write out the pros and cons, consider all angles and make the decision that works best for your family—no matter which decision that is.
Consider renting for longer
Renting often gets brushed aside as the least appealing residential choice available—particularly if you have kids and pets—but you shouldn’t ignore this housing option. Let’s say you can afford to break into the housing market in a town or suburb an hour away from your current home, but you don’t have the budget to buy something where you live right now. If you absolutely love your neighbourhood and lifestyle or can’t tolerate a longer commute to work, continuing to rent is an excellent choice. It might be forever if that’s what works best for your lifestyle (for example, if you travel often or move frequently), but it could be just until you can afford to move into the housing market later on.
Renting isn’t a bad thing—you can often find a comfortable place to live without the incidental costs associated with home ownership (taxes, property maintenance, utilities, etc) and ideally, this will allow you to save consistently and effectively. Don’t think of renting as something you have to stop doing as soon as possible—instead, look at your long-term plan and assess how renting can help you build wealth and check those ‘life goal’ boxes one by one. Take the time to find a rental you love that enables you to have the lifestyle you want and save for a future home purchase. This way, you’re investing in your current happiness as well as your financial future.
Speak to an expert
Home ownership is a massive undertaking, and it’s even more complex when the dollars in your bank account don’t line up with your dreams. However, it’s an incredibly worthwhile goal that can be achieved with the right advice and support. Not only will home ownership give you a strong sense of personal satisfaction, it can help secure your financial future by offering a secure, low risk investment that is likely to appreciate in value over time. It may not happen overnight, but it’s possible.
If you aren’t sure which of these strategies is right for you, please consider speaking with a financial expert on our team. In addition to these high level ideas, our advisors can provide specific advice. Every person or family has unique goals, lifestyle preferences, income potential and financial obligations, which makes housing choices incredibly personal. Rather than taking the advice that’s right for someone else, get one-on-one guidance that makes a real difference in your life.