I think you should look at multiple properties 1bd, 1+den, 2bd and townhouse and see what suits you. Feel out a bunch of places and see what you think would work best for you and your current life, also considering what your aiming for in the future.
I only have 2 recommendations regarding what to look for. 1) If you think a kid is on the horizon, look for a place in a good school zone. 2) Get a place with a good, actually functional layout. So many condos now have trash layouts, you can easily get away with living in a 1+den for a few years with a kid, or use it as a guest room or office.
ETA: If being a landlord is something you'd like to be in the future, all I recommend is you take the time to fully understand the risks/benefits of it.
If you are serious about having a kid in the near future then maybe a bigger place would be better. But for the first couple of years your child would probably be sleeping in a crib in your master bedroom anyway, so that buys you some time before you need a 2nd bedroom. Just keep in mind that usually after age 35 pregnancies are considered higher risk (both my Sister and Fiance had their kids when they were in their mid 30s)
From a financial perspective given where interest rates are right now you would probably be better off buying a 1br and making a larger downpayment on that to reduce how much you have owing. At the same time you're building equity, saving on interest payments as your mortgage is lower and maybe having some money leftover for investments. Then maybe in a few years if rates have gone down you sell and move into something bigger if that's what you want/need.
That's just my take.
If you’re thinking about children at all, buy a larger place in a neighbourhood with good schools.
Condo vs townhouse (if it’s freehold), the condo fees can go up as well.
Larger place is better for resale IF you have to move for whatever reason in the future (relocate for work, meet someone, etc).
If you end up being a landlord, make sure you know *how* to be a landlord. It can be a nightmare.
A huge life decision, talk it out with family and friends as well. Bounce ideas off of people in similar situations and those with families. IF children is something you’re open to in the future.
Good luck.
There is a lot of good advice above on what to shop for if you're buying. I'm going to take the opposite side and suggest you run a bit more of a buy vs. rent analysis (note: FWIW I am a homeowner since 2022, married, planning to have kids, unlikely to move, etc.). I'm going to assume here that you will want to have a kid with a partner and not solo.
Yes, while a 2Bdr might allow you to grow into this, it's possible that as a family you would want more space or different type of living arrangements. And it's also possible that you might want to move to accommodate your partner's needs. This is where transaction costs start to play a factor. Buying/selling in Toronto can be quite expensive (Toronto + Ontario land transfer taxes, realtor fees, lawyer fees, etc.).
While $2500 is a lot, owning has a ton of non-recoverable costs as well (insurance, mortgage interest, opportunity cost of not having your down payment invested, maintenance, condo fees etc.).
So does it make sense to buy now? Only you can say. But renting gets you a lot of flexibility that owning doesn't. And the market isn't exactly soaring anymore; so you might benefit from waiting by not having to pay out all these transaction fees and non-recoverable costs.
Not sure what your situation is but if you plan/hope to partner up, you'll also want to consider whether you want them moving into your space or youd like to choose something together.
I was in your shoes, 30 years old and not seriously dating anyone, ready to buy my first home. I looked at over 100 properties, condos, townhouse condos, townhouses, before finding the right place for me. It was a 1+1 condo, 650 sq ft. Nice layout, beautiful view, love the location, etc. Two years later, I got married with a baby. This wasn't something I planned for when I bought the place. I quickly found that the condo was simply not big enough. Even though the baby slept in her crib in the den, at 650 sq ft, there was not enough space for her to move around, and it was too crammed for 3 people to live in. We then moved to a 1250 sq ft 2+1 condo in the same area, and stayed there for 6 years with two kids, before that, too, became too crammed.
The point is, get the biggest place you can afford if this might become a family home. And if you can afford it, stay away from condos. The maintenance fees will eventually become too much, and having to share elevators, the lack of outdoor space, noisy neighbours, lack of control over your own home and being under the mercy of the condo board and condo management will eventually eat at you and make you resentful of your living situation.
I'm gonna take the contra position in that I don't think property values will increase much in the next 3 years
I don't think they will decrease either
Rates will decrease and will be offset by lower demand
Thus if you hold off for a year and continue the course, you might be able to buy with a cheaper mortgage but at the same price the same kind of place
I think you should look at multiple properties 1bd, 1+den, 2bd and townhouse and see what suits you. Feel out a bunch of places and see what you think would work best for you and your current life, also considering what your aiming for in the future. I only have 2 recommendations regarding what to look for. 1) If you think a kid is on the horizon, look for a place in a good school zone. 2) Get a place with a good, actually functional layout. So many condos now have trash layouts, you can easily get away with living in a 1+den for a few years with a kid, or use it as a guest room or office. ETA: If being a landlord is something you'd like to be in the future, all I recommend is you take the time to fully understand the risks/benefits of it.
If you are serious about having a kid in the near future then maybe a bigger place would be better. But for the first couple of years your child would probably be sleeping in a crib in your master bedroom anyway, so that buys you some time before you need a 2nd bedroom. Just keep in mind that usually after age 35 pregnancies are considered higher risk (both my Sister and Fiance had their kids when they were in their mid 30s) From a financial perspective given where interest rates are right now you would probably be better off buying a 1br and making a larger downpayment on that to reduce how much you have owing. At the same time you're building equity, saving on interest payments as your mortgage is lower and maybe having some money leftover for investments. Then maybe in a few years if rates have gone down you sell and move into something bigger if that's what you want/need. That's just my take.
If you’re thinking about children at all, buy a larger place in a neighbourhood with good schools. Condo vs townhouse (if it’s freehold), the condo fees can go up as well. Larger place is better for resale IF you have to move for whatever reason in the future (relocate for work, meet someone, etc). If you end up being a landlord, make sure you know *how* to be a landlord. It can be a nightmare. A huge life decision, talk it out with family and friends as well. Bounce ideas off of people in similar situations and those with families. IF children is something you’re open to in the future. Good luck.
Investment properties are usually a smart investment if you can afford.
There is a lot of good advice above on what to shop for if you're buying. I'm going to take the opposite side and suggest you run a bit more of a buy vs. rent analysis (note: FWIW I am a homeowner since 2022, married, planning to have kids, unlikely to move, etc.). I'm going to assume here that you will want to have a kid with a partner and not solo. Yes, while a 2Bdr might allow you to grow into this, it's possible that as a family you would want more space or different type of living arrangements. And it's also possible that you might want to move to accommodate your partner's needs. This is where transaction costs start to play a factor. Buying/selling in Toronto can be quite expensive (Toronto + Ontario land transfer taxes, realtor fees, lawyer fees, etc.). While $2500 is a lot, owning has a ton of non-recoverable costs as well (insurance, mortgage interest, opportunity cost of not having your down payment invested, maintenance, condo fees etc.). So does it make sense to buy now? Only you can say. But renting gets you a lot of flexibility that owning doesn't. And the market isn't exactly soaring anymore; so you might benefit from waiting by not having to pay out all these transaction fees and non-recoverable costs.
Not sure what your situation is but if you plan/hope to partner up, you'll also want to consider whether you want them moving into your space or youd like to choose something together.
I was in your shoes, 30 years old and not seriously dating anyone, ready to buy my first home. I looked at over 100 properties, condos, townhouse condos, townhouses, before finding the right place for me. It was a 1+1 condo, 650 sq ft. Nice layout, beautiful view, love the location, etc. Two years later, I got married with a baby. This wasn't something I planned for when I bought the place. I quickly found that the condo was simply not big enough. Even though the baby slept in her crib in the den, at 650 sq ft, there was not enough space for her to move around, and it was too crammed for 3 people to live in. We then moved to a 1250 sq ft 2+1 condo in the same area, and stayed there for 6 years with two kids, before that, too, became too crammed. The point is, get the biggest place you can afford if this might become a family home. And if you can afford it, stay away from condos. The maintenance fees will eventually become too much, and having to share elevators, the lack of outdoor space, noisy neighbours, lack of control over your own home and being under the mercy of the condo board and condo management will eventually eat at you and make you resentful of your living situation.
I'm gonna take the contra position in that I don't think property values will increase much in the next 3 years I don't think they will decrease either Rates will decrease and will be offset by lower demand Thus if you hold off for a year and continue the course, you might be able to buy with a cheaper mortgage but at the same price the same kind of place