Reality Check: It Is Not Your Forever Home

Many people need a reality check.

Very few people are buying their forever home these days. The average Canadian moves many times in their lives. Hardly any prepare to move long in advance. The result is lost earnings, savings, and legacy.

Canadian homeowners usually own at least four to five houses in their lifetime. Most people tell themselves after a bad moving experience that they will never move again. “This is my forever home!” everyone exclaims. Then in a couple of years, flaws in the property already have them longing for a new place to live. Unfortunately, they may have taken out long-term contracts or loans on things like renovations or furniture for the home. This can make selling difficult for many years. 

Renters can also make similar mistakes. One of the worst is signing a rent-to-own contract. Canadian data is not readily available, but in the USA, renters move on average every 2.5 years. Most rent-to-own contracts will be for a much longer time frame than that. As a result, most people do not succeed at a rent-to-own purchase process.

Many problems impact people who are unrealistic about their new home, whether it is purchased or rented. The best thing to do is to go into things recognizing you will almost certainly be moving in less than ten years. You may even be moving in 2 years.

Reality Check

Do not build the new wing onto your house that you dream about. It is probably a money pit.

Do not convert that garage into a bedroom so your family has more living space. The buyer will want a garage even if you do not.

You do not need to replace every appliance and machine by agreeing to a ten-year rental agreement. Buying out the agreement at sale is costly, and will eat into any profits you may have.

Nothing in this blog constitutes professional advice. All statistics are gathered from publicly available sources.