Lost your perfect new apartment to a higher bidder? You’re not alone.
Whether it’s because you’re considering moving to a more convenient part of the city or you’re searching for your first apartment, you’re likely going to find yourself house hunting at some point. And with condos popping up all over the city, and seemingly almost instantly, it should be easy to find a place to live, right?
Wrong. So, very wrong!
Your impending move may cause you more trouble than you expect, and it’s not going to be because you forgot to book the elevator (by the way – NEVER forget to book the elevator!).
I know what you’re thinking: “What about all those new buildings popping up along the skyline?” And that’s definitely a great point. While it seems a brand new condo appears to shoot up out of nowhere almost daily, the rate at which they’re being built just can’t keep up with our skyrocketing urban population. This won’t mean that it’s impossible to find your next dream home, but it does mean that you’ll probably be entering a bidding war when you do.
Like everything in Toronto, rent is more expensive here than most other places in Canada. Pair this with the fact that there are more residents than there are places to reside, and we officially have a problem.
First off, let’s try to understand that problem a little bit better.
A lot is going down right now in Toronto real estate, especially regarding rental properties.
A lot of people aren’t buying because of the increasing purchasing prices, leading to more competition in the rental market. With skyrocketing rental prices, the people who are willing to own are also willing to pay a lot more for an income property just based on the fact that they can charge more rent for it. This along with a lot of other factors just leads to an endless cycle of rental and purchasing prices getting higher, and higher, and… yup, you guessed it – higher.
More people are moving to the city every day for a variety of reasons. Whether people are moving to the GTA for work, school, family, or just for the urban lifestyle, essentially everyone wants to live in Toronto. While nobody can blame them, this just leads to more competition for accommodations.
You also affect your own house hunt just as much as the competition. If you’re looking in a popular area, you’re already looking at an expensive cost of living. If you’re maxing out your budget by looking in a specific neighbourhood, you’re not going to have much to bring to the table when you hear there are other offers and you’re asked to up yours. If you’re looking for very specific amenities, chances are someone else is, too. And if you’re going into this process on your own, you only have your own finances to back you up.
Really, though, it all comes down to an oversaturated market. There are just too many people and not enough homes. Chances are, applying for a place will be a multiple-offer situation. There’s really no way around it.
But listen – the main thing to remember is that it’s not hopeless. There will always be a next apartment, you will just probably need to make some compromises to get it.
Maybe you live ten minutes outside your dream neighborhood, but save a few hundred dollars every month. You might find an affordable place right near the subway, but have to find a nearby laundromat when your new building doesn’t have laundry facilities. Maybe you can find everything you want in a home by sharing it – split the space and split the cost by finding a roommate. There are always things to shift on your wish list in order to make it work.
Also keep in mind that you may not always find the perfect condo at your first open house, and if you do you’re probably in the same boat as four other people with better jobs and credit scores than yours. It’s unfortunate, but that’s just the market we happen to be in right now.
When it comes down to the wire, it’s entirely up to you to choose where you want to live and what you want to sacrifice. But if you’re really unwilling to budge on your living requirements, just make the jump and up your offer to whatever is necessary in order to score that perfect apartment.
Finally, always remember that finding your next place may be hard, but there is always someone in your corner ready to go to bat for you. It may not be Edwin, but we promise someone from our office will be just as dedicated. Contact The Raymond Yong Real Estate Group at (416) 906-9863 or via email at [email protected] to find out how we can make your rental search easier.
