I remember the first time one of my elders turned toward me and remarked, “You know……we were all young, once.”

My response was, “Thanks, old lady,” but fortunately that only resonated in my mind, and in practice, I simply forced a smile.

But the irony is: that experience is eventually going to come full circle.

I remember it vividly.

It was 2005 and I was at one of our brokerage’s Monday morning meetings.  The typical announcements were made, including birthdays and anniversaries, and Ann Bosley mentioned that one particular agent had just celebrated his twenty-fifth anniversary with Bosley Real Estate.

I smirked and chided, “Geez, and to think I’m only twenty-five years old…”

That’s when an agent turned and said, “You know……we were all young once.”

I guess what goes around comes around.

At this year’s company awards, Christan Bosley announced the new members of the twenty-year club.

Yours truly was included, along with three others.

After the applause died down, I muttered a little too loudly, “Twenty years…..fuck my life….there are people that are that old.”

Way too many people heard that comment.

Yes, a lot of time has passed since I started in this industry, and a lot has changed.

Perhaps one of the biggest changes, unfortunately, is with respect to prices.  That would also signal that one of the biggest changes has also been with respect to affordability.

The first condo I ever sold was for $246,500.  That included the furniture.  Oh, and that was a 2-bedroom, 2-bathroom unit.

The first condo I ever sold to a first-time buyer was for $216,900.  It was 540 square feet with no parking, locker, or outdoor space.

Two weeks ago, I wrote a blog post about the new Freed Residences, where studio condos were being pre-sold for upwards of $2,300 per square foot.

Affordability has never been worse in our market, and first-time buyers might be the ones most affected.

Last month, there was an article in Real Estate Magazine that caught my eye:

“Young Canadian Homebuyers Embrace Trade-Offs For Early Home Ownership”
Real Estate Magazine
March 25th, 2024

It was a nice start but I didn’t think this article went far enough.

In fact, I really didn’t learn much from it, other than perhaps the notion that I needed to pen a similar blog post.

Then last week, I was sitting down with TRG’s very own Matthew Morrison to record a podcast and video (FYI – we will have these launched in May, but just like every street busker and performer, we need to “put some money in the hat” before we start…), and Matthew suggested we spend forty-minutes on a very important topic: first-time buyers.

It’ll be interesting to see the finished product with that video.  I can’t remember if Matthew called me a “curmudgeon” or an “ogre,” but I do recall that he said I was “out of touch.”

Look, just because I was a Napster pioneer and chatted on ICQ every night doesn’t make me old.

I can still understand the wants and needs of today’s early-20-something’s, right?

Matthew accused me of “stereotyping” and “typecasting” during our video at least a dozen times, but I never – not once, used the term “avocado toast.”  I promise.

In any event, the REM article and my first-time buyer podcast got me thinking about the most important part of the search process for any and every first-time buyer: making compromises.

But not only first-time buyers need to make compromises.  Every buyer who doesn’t have an unlimited budget has to make compromises!

I sold a house for $3,200,000 last week to buyers who had to “settle” for a shortened list of nice-to-have’s.  They too made compromises and accepted trade-offs in order to get into their desired location and housing style within their price parameters.

Had these buyers looked at a different housing style, or in a different location, perhaps they could have obtained everything on their list.  But that’s the point: everything is relative.  And as you’ll see on today’s list, location is something that every buyer can compromise on, but how many do so in practice?

Twenty years into the business and I still do work with first-time buyers.  Perhaps not as many as I did when I started, and I will be honest and say that Matthew and Tara work with far more first-time buyers than I do, but that doesn’t mean I don’t have a few ideas on where first-time buyers can compromise in order to get into the market.

And that’s the fun part, to me.  Or the ironic part.  Because today, I’m going to provide you with a list of my “Top Ten” buyer compromises, which is either completely astute or exceptionally misguided, considering I paid $277,500 for my first condo in 2005, and considering I’m 43-years-old.

Like I said: I’m either speaking as a subject matter expert and from experience, or I’m waiting for a younster to take a break from TikTok long enough to shout, “Okay Boomer.”

Either way, here are my top-ten features that first-time buyers can compromise on…

10) Home Office

In my first condo at 230 King Street East, my home office was at the breakfast bar in my kitchen.

At my second condo at 112 George Street, my home office was at the dining room table.

Now, it’s important to note that at my first condo, I didn’t have a dining room table!  In fact, I didn’t even have a table at which to eat, other than my IKEA coffee table.  So I couldn’t have worked “in the dining room” at the first condo regardless.  However, in my second condo I did have a den!  I had a glass desk, a filing cabinet, a printer, and all the tools of the trade, like an abacus and a quill of ink…

But after the first couple of months in the condo, I started to work from the dining table.

The chair was comfier.  And I could extend my legs to rest my feet on the chair on the other side of the table.  Plus, I could look out the window and see the CN Tower instead of staring at a wall in my “home office.”

But the dining table was also closer to the couch where my girlfriend, turned fiancee, turned wife, would sit and watch MTV’s The Challenge, or Keeping Up With The Kardashians, or Snooki & JWoww.  It was just a much better working environment.

I don’t think I’m telling the younger generation somebody they don’t already know here: you don’t need a home office.

This is one of the easiest compromises to make when looking for your first condo.  A separate room is a luxury that many buyers can’t afford, and one that, as I noted above, they might not use.

Remember once upon a time when everybody had cable TV?  Remember when the television in the living room was the focal point of every house, condo, or student residence?  And then remember when young people on a budget started to go without cable and instead stream on their laptops, in their beds?

“Back in my day,” four kids living in a house together at school would always crowd around the TV on a Saturday night and watch hockey or movies.  Years later, they’d all be individually in their rooms watching movies off Popcorn Time.

The way we consume movies, TV, and sports changed years ago and I feel as though the way people work from home took the exact same path.

If a first-time buyer is looking for a compromise, that dream of a “home office” should be the first to go.

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9) Outdoor Space

For those who didn’t know, I have a lot of experience in this arena.

Here’s the terrace at my first condo:

And here’s part of the terrace at my second condo:

My first terrace was 440 square feet, attached to a 585 square foot condo.

My second terrace was 1,200 square feet, attached to a 1,200 square foot condo.

Both were features that I made the most of, and once I had experienced the terrace at the first condo, I refused to consider moving to any subsequent condo without a similar-sized terrace.

Who know I’d find one almost three times as large?

So if I’m such a big proponent of terraces, then why am I suggesting that first-time buyers should compromise on outdoor space?

Well, that’s why it’s called a “compromise.”  Surely there are other features that buyers rank ahead of outdoor space, right?  If somebody needs a certain location, or unit size, or a feature like parking, and you truly “can’t have it all,” then consider giving up the outdoor space.

Also consider how different outdoor spaces are used.

You know those balconies that are six-feet wide and two-feet deep?  They’re useless.  They’re only good for your friends that smoke and for birds to build nests and hatch babies that you then feel bad asking property management to…..um…..re-house.

And six-foot by 4-foot balconies aren’t much better.  You can get a bistro set out there but not much else.

A Juliette balcony is either completely useless, since you can’t actually go outside, or completely necessary, for those that would feel like they’re enclosed in a glass box without it.

When considering outdoor space, a buyer also needs to consider the way in which the space would be used, how often it would be used, and just how much damn work a large outdoor space is.

Every spring for thirteen years I had to pressure-wash the patio stones or decking, re-paint or repair the planter boxes after the snow and wind beat them up all winter, bring up bag after bag of garden soil, and re-plant flowers and trees.  Oh yeah, that was a right of passage!  Imagine ordering a dozen blue spruce trees from Bradford Greenhouses and having a truck driver pull into the loading dock of a downtown condo, looking around like he was lost?  Yeah, I did that a few times.

Every spring it was at least thirty hours of work, and for me, that meant 7-10pm at night on weeknights or on Sunday instead of watching or playing golf.

Then there’s the bird-shit.  It’s worse when you find out the two crazy guys living next to you have been feeding the damn things for years.  By the last year at 112 George Street, the bird shit was so bad that we barely used the terrace.

Terraces can be awesome.  But they’re not for everybody.

And for a first-time buyer, consider how you’d use that outdoor space and whether or not you could save it for your second property…

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8) Exposure

“Wherever we end up, we must have morning sun!”

I’ve heard that one a few times, but one particular experience stands out to me.

It was a young couple looking for their first condo and who had a very lengthy list of “must haves,” even though they, like everybody else, had to adhere to a budget.

The young lady in the couple was adamant about an east-facing unit for “morning sun.”

“I find it very hard to wake up and get into the right mood to step outside and take on the world unless I can feel the sunlight on my skin.”

Many years later, we might give this individual the benefit of the doubt and suggest that maybe this was related to mood, anxiety, or mental health.  But it wasn’t.  They were just what the kids today call “extra.”

I remember explaining that every building is essentially four-sided, thus only one side faces directly east.

That would automatically eliminate 75% of all downtown condos from contention.

But they weren’t fussed.

So we proceeded and only looked at east-facing units.

To their credit, they did make a slew of compromises.  They accepted a much smaller condo – with micro kitchen appliances before that trend started, and an inset-bedroom which they didn’t want (and I didn’t understand how direct sunlight could be so important to them and yet they bought a condo that had a bedroom with no window!), and found a condo on a high floor with east-facing sunlight.

Years later, they bought a house and we sold their condo.  But unfortunately, there was a new, large condo tower right in their face and the “morning sun” that they enjoyed so much when they first moved into the condo was something that the next buyer wouldn’t benefit from.

Speaking of which, that brings me to the next item on our list…

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7) View

When condos at 150 Sudbury Street went on sale in the mid-2000’s, they charged an extra $15,000 for an east-view which meant you could see the CN Tower.  The identical unit on the west side of the building was $15,000 cheaper.

Of course, what buyers didn’t know, and what the developer didn’t tell them, was that another condo was planned right next door that would obstruct the CN Tower view.

By the time 150 Sudbury Street was completed, the east-facing CN Tower view was already gone.

Condo buyers at 150 Sudbury Street who paid an extra $15,000 for that view were able to enjoy it for exactly 0.00 days.

My very first condo stared at a brick wall.

My second condo overlooked St. James park, downtown, and had a direct view of the CN Tower.

While I enjoyed the view at the second condo, it probably wasn’t something I would have paid for.  Having said that, when I sold the condo, the view was a major selling feature.  I remember installing the Trex decking out on the terrace and the four guys who came to do the work stood and stared at the view.  Two of them pulled out their cameras and took pictures.

Much Ado About A View?

I dunno.  I’m not convinced.

Especially if you’re a first-time condo buyer on a budget.

This is an easy concession to make and it would rank higher on the list if it played more of a role in affordability…

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6) Second Bathroom

This goes for both condominiums and freeholds, but the theory is a little different.

I remember selling a condo to a couple at 230 King Street East years ago; one of the 1-bed, den, 2-bath models where the second bathroom wasn’t just a powder room at the front of the unit, but rather a 3-piece with a shower.

When we bought the place, they joked about how having two different bathrooms would save their relationship.

But when we sold the place six years later, they admitted that they had never used the second bathroom.

“The shower in the master bedroom ensuite is way better,” she told me.

“Plus, as soon as I got my new job, I had to get up earlier, so we never got ready at the same time in the morning,” he added.

A second bathroom in a condo is a nice-to-have but it’s an easy compromise.

In a house, it’s seemingly more important, and yet I would still suggest it’s a compromise one should make.  But I’m going to save that until we get to #2 on our list.

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5) Amenities

“Trust me, you won’t use them.  You’ll be too busy working!”

That’s what I used to tell my young, downtown-dwelling, first-time buyers, especially those in banking, law, or a field that would require a lot of their time.

Seriously though: raise your hand if you used the bowling alley in your condo?

Virtual golf?  The poker room?  The squash court?  Seriously – tell me you’re hitting the squash ball with Roderick every Tuesday night.

How many times do you expect to rent the party room during the five years that you live in the building?

Do you really need a condo with “guest suites” so your mom and dad can stay there when they visit, or can they simply stay at the DoubleTree, Holiday Inn, or Hilton?

But most importantly: will you actually get into that cess-pool of a hot tub – the one you have n-e-v-e-r seen occupied before?

I feel as though few buyers in 2024 actually include amenities on their nice-to-have list, let alone the must-have list, and yet some to assign a higher value to condos with amenities.

But so does the market.  These buildings generally cost more.

Not only that, the maintenance fees are higher, and that’s going to decrease affordability.

If you’re willing to give up your $120/month gym membership in order to work out in the condo gym, then we’re starting to make sense here.  Otherwise, compromise on the amenities.

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4) Parking

“I only drive my car on the weekend when I go to visit my parents in Markham.”

If I had a dollar for every time a downtown, first-time condo buyer told me this, I could probably rent a parking space for a month…

Thirty years ago, a 400-unit condominium might have 500 parking spaces.

Twenty years ago, the ratio was probably closer to even.

Nowadays, parking spaces are selling for upwards of $200,000 in pre-construction (in the coming weeks, I’ll review the new launch at 101 Spadina Ave where parking is $200K!) and most new condominiums only allow the buyer to purchase a parking space if the unit is a certain size or value.

I’m of the mindset that unless a first-time buyer drives to work every day, then that buyer should forego the parking space.

But that also means I’m telling that first-time buyer to forego the car, and as a person that drives all day, every day, I can’t imagine life without a car.

Can you?

Can today’s entry-level buyer?

For the buyer who literally only drives the car on Sundays to get groceries at Loblaw’s on Queen’s Quay, I think owning a parking space is a waste.  And it’s the first compromise I would make.

A $550,000, 1-bed, bath condo in a typical 10-15 year old building would probably cost $590,000 with parking.

Or another way of thinking about it is: if a buyer is pre-approved for a $550,000 purchase, and that buyer can buy the condo without parking, but can’t afford the same unit with parking, then maybe that’s the best compromise the buyer can make in order to get into the market…

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3) Condition/Finishes

This is easy.  And it’s very, very important…

There are some features of a house or condo that you can never change.  For example, if you buy a house with 8-foot ceilings on the main floor, you’ll never have ten or twelve-foot ceilings.  This is a by-product of the construction and style of the house, which is a by-product of the age of the house.  But I’ll explain to my buyers, “If you’re looking at a house with 10-foot ceilings that is all 2009-finishes, versus a house with 8-foot ceilings that was completely re-designed in 2024, you’re giving up something you’ll never be able to change for something that you can.”

By the same token, you can always change the condition or finishes of the house or condo, but you can’t change the size, location, view, etc.

It’s a simple exercise in comparing and contrasting, but the condition/finishes should always lose out.

Let’s say you’re looking at a brand-new, never-lived-in condo that’s 400 square feet, with 2024 finishes, and you’re comparing this to a 2008-built condo that’s 550 square feet.  And they’re the same price.

I would compromise on the finishes before I ever compromised on the size.

You can always rip up the carpet and install hardwood.  You can always buy stainless steel kitchen appliances and junk those old white ones.

I want to type-cast and suggest that today’s first-time buyer likes “bright, shiny things,” but Matthew told me last week that today’s buyers are more pragmatic than I might believe.

I understand that part of the “fun” of buying your first house or condo is that you want to love where you live, and that means being happy and proud to come home to a nice, clean space.  I’m not suggesting that you purchase a hole in the ground because it’s a better investment or it’s larger, but rather I’m suggesting that you try not to act like a buyer on a reality television show that acts like paint hasn’t been invented yet.

“I loved the house.  I just can’t wrap my head around the yellow kitchen, so this house is a ‘no’ for us.”

Seriously, who writes this crap?

In any event, I’m working with a few buyers in the $3,000,000 range that already own their second or third property, but they are all willing to compromise on the condition and finishes, so it seems to reason that first-time buyers could too.

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2) Finished Basement

This clearly only applies to freehold, but the theory behind it could be applied to condos.

This amounts to buying something that works for today but that can be expanded and improved upon for tomorrow.

It also borrows the theory from Compromise #3 above.

I remember when my brother bought his first home.  He and his wife stretched to their absolute max purchase price to buy a home in Riverdale, which happened to have an unfinished basement.  The MLS listing actually read, “Coveted High Riverdale Basement,” which we laughed at, as though this was a thing.  Ah, yes, the coveted high basement!  A staple in the Riverdale community!

But guess what?  That basement was 7-feet tall.  The basement was completely unfinished but they didn’t “need” the space.  At least, not yet.

They were able to purchase the home for probably 15% less than what the same house would sell for if it did have a finished basement, and that enabled them to get into the house, into the market, and into the neighbourhood.

Four years later, with a little more money in their pockets, they hired a contractor to finish the basement.

They got to do it their way and design it with their desired layout and their desired finishes.

And with my brother basically acting as foreman, he spent a little more than half of what the value-added to the home (ie. if the house did have a finished basement when they bought).

In Compromise #6, I talked about the second bathroom.

Sure, you can compromise on the second bathroom in a condo and in a house, but you can also compromise on the second bathroom for now and add it later.

That’s what buying a house with an unfinished basement can do.

Consider your typical 3-bed, 2-bath, semi-detached house on the east side.  Say this is a $1,300,000 house on average.  Now, consider the same house with an unfinished basement (ie. no second bathroom) costs $1,100,000.  If you have a budget of $1,100,000, then go for it!  Get into the house, get into the market, and finish that basement down the line.  If it costs you $200,000 and you essentially come out even, consider that you never would be in that house in the first place if not for the savings on the second basement.  And if you can finish the basement for less, then consider the return on investment, as well, consider it’s tax-free.

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1) Location

This is ironic, eh?

Borderline incorrect, you might suggest.

Considering the three most important tenets of real estate are “location, location, and location,” then why is this #1 on my list?

Well, there are two sides to that coin.

Location might be the most important aspect of real estate, but then it follows that it could also be the most pricey.

It could also follow that it’s a luxury that those who are grasping for the bottom rung on the real estate ladder might not able to achieve.

In my mind, this is more important in the condo market where a first-time buyer with a budget can concede on location.

You want to live in prime King West, eh?  That’s where you party, that’s where your gym is located, and that’s where your friends live.  But you don’t have the money for it.

No problem.

Live in King East.

Live in the Distillery District.

Live in Leslieville.

Buy a place in the Beaches, or on The Danforth.

You can take public transit or an Uber if/when you want to head out to another area of the city.

I’m channeling my inner old man here when I say this, but not everybody can afford to live where they want to.  My opinion on this is much more hardened when it comes to the rental market; where people suggest that they “need” to live downtown because they also work downtown.  It’s like nobody in other areas of planet earth commutes.

Compromising on location is the easiest and yet most difficult at the same time, but that’s because of how far your dollar can go someplace else.

What can I get for $1,000,000 in the downtown core?  And what does that get me in Birchcliff?  And what does that get me in…………Ajax?

Alright, compromising on location isn’t for everybody, but those who add it to their list will have more options than anybody else.

I’ve told far too many stories of my own today.

I’d love to hear from somebody else.

What’s a compromise that you made and why?

Better yet: what will you absolutely, positively never compromise on?  And why not?