How to get over your crippling housing FOMO

We realize it isn’t 2007, but FOMO (fear of missing out) is the best way to describe the anxiety that many prospective homebuyers are feeling at this point in time. Toronto’s real estate market is hot - some say it will be even hotter than Vancouver in the near future - and inventory levels are low.

Housing FOMO is a very real thing and it exists in many forms:

1) Missing out on a new release or opening   

There may be a shortage of new low-rise homes in the GTA right now, but there are many new openings and releases in the works in surrounding areas like Simcoe County and Niagara Region.

You may be able go to a website (like Newinhomes.com) and register for them all, but there is no way that you will physically be able to attend all of the openings. The best way to get over your FOMO is to pick a few locations where you want to live, and only register for the projects in those areas. If you want to live in Innisfil, don’t get distracted by that new opening in Guelph.

2) Missing out on simply being a homeowner

This one applies only to first-time homebuyers. Every time the first of the month rolls around, your rent cheque gets deposited and you mourn the money you will never see again. It’s not a fun time.

One of the hardest parts about buying your first home is being able to afford the down payment, and since rent is getting so high in Toronto, you’re likely having a hard time saving up. Plus, housing prices keep going up as inventory levels drop. First-time buyers are watching their options dwindle as the number next to the dollar sign increases.

The best way to get over this is to buy from a developer that offers first-time buyer incentives and programs. The Daniels Corporation is a great example with their First HOME Boost and Gradual Deposit Payment Plan.     

3) Missing out on investment opportunities  

At the end of the first half of 2016, there were over 13,000 unsold new condo units on the market across the GTA, according to Urbanation. That may sound like a lot, but it’s actually 26% lower than last year. This is the lowest inventory has been since 2010.

People are scrambling to buy condo units to generate rental income. There are now many one-bedroom units available in downtown Toronto and other parts of the GTA. The problem is, which ones are the best? How do you know you’re buying the right one? When you do finally pull the trigger, will you be hit by buyers remorse because another unit in the building just got listed?

Our recommendation for this form of housing FOMO? Be grateful that you are in a position to invest in a rental property because there are thousands of people out there who either can’t afford a home or can’t find the right one.

4) Missing out on your desired floor plan/elevation

When you go to the opening of a new low-rise community, you probably have a floor plan and elevation in mind, but there’s a good chance that your desired combination is only available on a few lots. So what do you do?

You won’t come across this problem very often if you’re purchasing a new condo unit. The same layout is usually available on multiple floors. If you’re buying a new low-rise home, we recommend choosing three favourites before even going to the opening. That way, you have two back-ups.

While trying to help you get over your housing FOMO, we hope we didn’t identify new things for you to be missing out on.