If you decided to forego the traditional “New Year, New Me” resolutions for 2022 and have swapped green smoothies and gym memberships for the more aspirational goal of making real estate moves, you aren’t alone.
Countless Canadians are making plans right now to level up their real estate footprint for the new year. Whether it means entering the market for the first time, moving up, or finally selling your family home in favour of a more manageable, cost-effective property, there are numerous ways to build wealth, improve your living situation, and achieve your real estate goals in 2022.
Let’s take a closer look:
Now is a Great Time to Sell Your Home and Move Up
We are currently in one of the most competitive Seller’s Markets in recent history. What does this mean for you? With home inventory at record lows, it’s driving the prices up higher and higher.
For Sellers, this means they can command higher prices for their home. And, in most cases, properties are going into multiple offer situations. The result is higher sale prices and faster transactions.
However, many Sellers are wondering what to do once their house is sold? In such a competitive market, it’s harder to purchase a house than it is to sell one.
So we recommend working with an experienced real estate professional who knows the market and has access to exclusive or off-market listings to keep you ahead of the game in your search for a home if your goal is to move up this year.
Looking for more selling advice? Read some of our related blogs for everything you need to know about selling your home:
- When is the Best Time to Sell Your Home
- Selling Your Home? Here’s Why Social Media Matters
- How to Prepare Your Home Like a Luxury Listing
If You’re Looking to Cash in On Your Investments
Real estate investing is one of the safest and most effective long-term investment strategies. It’s an excellent way to build generational wealth, create passive income, and enjoy some of the perks of being your own boss.
However, for many investors, the appeal of being a landlord and maintaining an investment property might lose its shine eventually. Either that or the investment has served its purpose, for example, if you buy a condo with the intention of letting your children rent it while in University, and now they have graduated.
If you are already feeling like the appeal of managing an investment property is waning, it might be time to cash in on your investment. The good news is that selling an investment property almost always results in a net profit.
Another good reason to sell your investment property would be if you are close to retirement and you want to capitalize on the property’s current high value now if you or your trusted real estate advisor suspects the market might change soon.
Real estate investing is one of the best ways to build generational wealth. We’re huge advocates for a well-balanced investment portfolio! Take a look at some of our investment blog posts here:
- 5 Up-and-Coming Toronto Neighbourhoods For Investing
- Buying an Income Property? Here’s What to Look For
- How to Help Your Children with Real Estate Investing
If You Want to Downsize
Have you noticed a theme yet? Selling real estate in 2022 is a great idea. The demand is here and Buyers are jumping at the opportunity to invest. However, one of the most sought-after type of home in the market right now is the single-family home. Luckily, there is an entire generation of homeowners who are currently in the process of downsizing their lives and looking to sell these family homes.
When you reach a certain age and your kids are out of the house, a large 3-4 bedroom home can feel too big to manage. Maintenance, cleaning, property taxes, it all starts to add up. And if you’re planning for retirement, you might want to consider a more cost-effective living situation.
Many retirees choose to sell their family home in favour of a condo, bungalow, retirement living, or even choosing to live in a secondary suite attached to their grown children’s home.
It’s a solid strategy that can save money, help pad your retirement savings fund, and also improve your overall quality of life. It’s also a great time to sell because of the lack of single-family homes on the market means that Buyers are lining up to make offers on these types of properties.
High ROI Home Improvements You Can Make
Have you ever heard the adage, “you have to spend money to make money.”? Well, that’s true when it comes to making home improvements. In fact, that are numerous high-end home improvements you can make this year in preparation for selling your home later in the year or even in 2023. (Although, I would caution Sellers on waiting too long to sell their homes! It’s best to strike when the iron is hot!)
For example, some of the best ROI home improvements you can make include:
- Adding a secondary suite or basement suite to your home if it allows (there are a lot of regulations regarding this improvement, and it can be quite costly, but the return on investment is usually worth it!)
- Replacing flooring with a luxurious material such as engineered hardwood.
- Completing minor kitchen and bathroom renovations such as adding stone countertops, high-quality appliances, and spa-inspired bathroom features.
- Giving the home a fresh coat of paint throughout.
- Making energy-efficient improvements to the heating, cooling, and plumbing systems.
Interested in learning more about high-return improvements you can make to your home? Read our blog about it right here.
Bear in mind that many of these projects require the help of a contractor or handyman, and it’s important to consider the time and material costs involved if you are planning to make home improvements before selling.
Whether you are planning to upsize, downsize, or cash in on some of your investments this year, it’s a great time for Sellers in the Toronto market.