Imagine this; the air is full of excitement as family members gather around. There’s a distinct celebratory atmosphere, but it’s not a holiday, birthday or anniversary.

Something even better is happening. Either you or someone you love is buying a house for the first time, and it doesn’t get more exhilarating than that.

The first purchase is often referred to as a “starter home.” The actual definition of what this means varies significantly. Today, we will explore some great starter home options in more detail.

Do you want even more detailed instructions on how to find and buy a home? You’ll find answers to many of your questions when you download our free Buyer’s Guide.

The Classic Starter Home: Condos

There is a reason why condos jump straight to mind when you think of buying a home for the first time. They are typically the easiest path for a younger person without a lifetime of equity to get into the market.

The final selling price is usually much less than you’d pay when buying a detached home, even in big cities like Toronto and Ottawa. A more affordable price lowers the barrier to entry in several ways.

• Less of a down payment is required. For homes priced up to $500,000, the minimum down payment is 5%, whereas for homes priced between $500,000 and $999,999, it’s 5% on the first $500,000 and 10% on the remainder.
• Borrowing less also makes obtaining financing simpler.
• Since land transfer taxes are based on a percentage, you can also expect reduced closing costs when finalizing your transaction.

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Has the idea of buying your first home taken hold? The posts below can help put you on your way to achieving this milestone:

• A Guide For First-Time Home Buyers in Ottawa
• Is It Time to Buy an Ottawa Condo?
• Steps to Buying a House for the First-Time (Canada)

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A Stepping Stone or Long-Term Solution?

Condos may seem like the perfect opportunity for first-time buyers, but there are also a few considerations to keep in mind. While the initial price is more accessible, condos can have higher long-term carrying costs due to monthly fees and the potential for special assessments.

Plus, you’ll want to be sure this is the right option for at least the next few years after your purchase. That way, your unit has time to grow in value and build your equity before you sell it to move on.

Can you imagine condo life for the foreseeable future? Some people love the convenient and carefree lifestyle, and they’ll put down roots for good. Others might start to feel restless and wish for more privacy and living space.

For the right buyer, condos really are an excellent option. Think of the advice you often hear to buy a house as early as you possibly can. Lower-priced listings are your chance to get your foot in the door. As your equity grows, your options will expand.

Thinking about making the move to Ottawa, or want to find the perfect starter home for sale? Start by browsing a few of our active listings.

Ottawa Townhouses: The Happy Medium

What are your options if you want to buy your starter home but your budget is limited and a condo just isn’t the right fit? The next logical step might be to consider a townhouse. Like condos, there are multiple residential units within a single building. There are, however, several distinct advantages.

For not much more of an investment, you often enjoy more living space, usually spread out over different levels. Common layouts include laundry facilities and a rec room in the basement, the kitchen, living room and a powder room on the main level, with bedrooms on the top floor.

If you’re moving with a family, the extra space (and more floors) between you can give everyone privacy and peace of mind. Plus, there are two types of townhouses to choose from:

• Condo townhouses: you get all of the space and privacy of a townhouse and all of the perks of living in a condo, with no yard work or snow removal to worry about. This convenience does come at a cost, and you can expect to pay monthly condo fees.
• Freehold townhouses: you’re in charge of all maintenance and repairs, inside and out. On a positive note, you have more freedom for renovations (within the guidelines from the Homeowner’s Association, if there is one). Perhaps best of all, there are no condo fees.

Townhouses can be an ideal option for the first-time buyer with extra savings or a slightly higher income. It’s the perfect step up from an apartment-style condo but not as expensive as a fully detached home.

There are many cities and towns to choose from when searching for a new place to put down roots. Here’s Why Young Home Buyers Love Ottawa.

Starter Home: The Family Version

Believe it or not, there are some first-time buyers who skip a few stepping stones and jump right into a family starter home. Without equity and a lifetime of savings, this can be a more challenging path. However, for a buyer with a more substantial budget or help from family members, it can be a dream come true.

You have a place to call your own right out of the gate, with the greatest amount of freedom to renovate and decorate as you choose. Historically speaking, detached homes tend to hold their value and appreciate faster, so this is a great starter home to start building your equity and your future.

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Whether you’re buying your first home or your forever home, Ottawa is a fantastic choice. Get a glimpse of what you have to look forward to in the posts below:

• Ottawa Festivals: Your Complete Guide
• Ottawa: More Than Meets the Eye
• Is Ottawa a Good Place to Live?

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Expanding Your Possibilities

Entering the market straight away with a spacious, detached home may seem like an ambitious feat. That said, a little creative thinking can open doors you didn’t know existed.

Some first-time buyers take an investment-minded approach, which can be a brilliant way to make your home more affordable. One simple option is renting out a spare room if you have extra space. A few hundred dollars a month can go a long way toward covering your carrying costs.

Other examples include multi-residential properties, such as duplexes, triplexes, or even a house with a secondary suite. The initial purchase may be more expensive, but here’s something to keep in mind:

Many lenders will approve you for a higher amount when there is income potential. Since obtaining financing is one of the biggest challenges, buying a larger home with investment potential can actually be more attainable than you realize.

However you decide to get into the market, you are in for an exciting journey. Our Ottawa real estate agents have a passion for helping first-time buyers of all ages! Reach out to us anytime at 613.829.7484 or email mail@chellteam.com to learn about our services.