Buying Something Wasn't the Goal
Our client was a first-time buyer who was ready to get into the Calgary real estate market.
But there was hesitation.
Like many first-time buyers, an apartment condo seemed like the obvious place to start. The price point was more accessible and there was plenty of inventory to choose from.
But Calgary's apartment condo market was experiencing softer conditions and price pressure.
Our client wasn't comfortable buying something simply because it was the traditional first step.
Neither were we.
So We Looked at the Bigger Picture
A first home doesn't have to be a forever home.
But ideally, it should make sense as part of a longer-term plan.
Instead of asking only:
“What can you afford to buy today?”
we started thinking about:
“What could you buy today that gives you more options tomorrow?”
That changed the search.
We Found Something Better
In the Marda Loop area, we found a new-construction townhouse-style condo that offered something particularly valuable for this buyer: a legal basement suite.
That meant our client could live in the upper portion of the home while renting the basement suite and using that income to help offset some of the ongoing costs of ownership.
For a first-time buyer, that changed the economics of the purchase considerably.
And because this was new construction, there was another opportunity.
We Negotiated the Purchase Too
New construction doesn't mean you simply accept the builder's price and terms.
We negotiated an excellent purchase price for the property and looked carefully at how the overall transaction worked for our buyer.
With the introduction of the federal First-Time Home Buyers' GST/HST Rebate, eligible first-time buyers purchasing qualifying new homes can potentially recover some or all of the federal GST paid, depending on the purchase price and program requirements.
That created another potential financial advantage for this buyer.
The Result
A negotiated new-construction purchase price.
A home in the Marda Loop area.
A legal basement suite with rental-income potential.
An opportunity to offset some ownership costs while living in the upper unit.
And potential eligibility for the new federal first-time buyer GST rebate.
Most importantly, the property gives this buyer options.
It works as a home today, but it may also make sense to hold longer term rather than automatically selling when it's time for the next move.
Your First Home Can Be Part of a Bigger Plan
There's a lot of pressure on first-time buyers to “just get into the market.”
We don't think that's enough of a strategy.
Sometimes an apartment condo is absolutely the right first purchase.
Sometimes a townhouse makes more sense.
Sometimes new construction creates opportunities that aren't available in resale.
And sometimes a property with additional legal rental income can completely change the numbers.
The goal isn't simply to buy real estate.
It's to understand what you're buying, what it costs to own, what opportunities come with it and how that property might fit into your longer-term plans.
For this buyer, the answer wasn't finding the cheapest way into the market.
It was finding a smarter first step.