Options abound for first-time buyers
Budget-friendly choices put dream of ownership in reach, Alberta builders say
A new survey shows some Canadians believe they are forever renters, but Alberta builders point to a growing list of affordable options.
Alberta’s new-home builders are weighing in on a recent survey finding a significant number of Canadians believe they may never be able to own a home.
The survey by the personal finance site Finder.com found about one in 10 surveyed believe they will be forever renters.
Yet builders interviewed by the Calgary Herald note the industry offers a wide selection of new product for budget-conscious, firsttime buyers to attain the dream of home ownership.
Calgary sales representative for Landmark Homes, Andreas Angellakis points to the builder’s Artis project in the new community of Greenwich in northwest Calgary as one of many offerings for this market segment.
“The target demographic is young professional, first-time buyers.”
The condominium/townhome hybrid project across from Winsport Canada Olympic Park offers stacked townhouses at just under 1,000 square feet, with two bedrooms for about $300,000. In turn, a buyer would need about $17,500 for a five per cent down payment. The down payment, however, would be even less for buyers using the federal First-time Home Buyer Incentive. The shared-equity mortgage program provides up to an additional 10 per cent toward the cost of a newly built home, as opposed to a maximum of five per cent on a resale home.
One reason Alberta builders offer a diversity of options for first-timers partly is because the segment is critical to the health of the overall market, says Blair Powell, sales manager Edmonton region at Morrison Homes Ltd.
“First-time buyers are such a huge part of the market.”
According to a report from 2015 by Mortgage Professionals Canada, new entrants make up about 45 per cent of all purchases.
Powell points to Morrison’s Bolero II as one example of affordably priced single-family home options. Featured in new Edmonton communities like Chapelle Gardens and Glenridding Ravine, the 1,152-square-foot, three-bedroom home’s approximate price tag of $300,000 is competitive with “townhome price points,” he says.
President and COO of Jayman Built Dave Desormeaux notes new homes typically cost less in Edmonton than Calgary due to lower land costs in the capital city.
“You can get into a house, lot and GST for about $298,000 in Edmonton, whereas it’s about $310,000 to $320,000 in Calgary,” he says, pointing to Jayman’s Khloe entry-level, single-family detached home.
The condominium market offers even lower priced options, including Q Condo in Calgary’s Sage Hill.
Another Morrison Homes build, its base-model condominium costs about $173,000 for a one-bedroom, one-bathroom floor plan of 564 square feet.
“It’s very attainable for first-time buyers, and they also get the urban lifestyle with all the surrounding shops and services,” says Sam Hudson, marketing director for Morrison Homes.
For a five per cent down payment, buyers would need about $8,900, says Anna Crossley, with Q Condo’s sales team.
More broadly speaking, prices for new homes have been low for some time due to the challenging economic conditions in Alberta over the last few years.
“Builders have been selling at a fairly aggressive price point for a little while,” Powell adds.
What’s more, unlike purchasing a home on the resale market, buying new includes a warranty providing peace of mind for several years, he says.
As well, new owners are building equity — long-term wealth — in their home, something they cannot say about renting, Hudson says.
“So you’re investing in yourself rather than just paying a landlord.”