Ready to make the jump from living in an apartment or with your parents to your first home? Many millennials today are realizing the advantages of buying rather than renting, and are actively looking at purchasing. If this describes you, you’re probably aware that buying a home isn’t inexpensive. Here in Toronto, as well as in many other cities, home prices continue to be on the rise, while availability can be an issue.
Buying your first home isn’t easy, especially if you’re a millennial. It’s been estimated that people in our age group need to save for three full years in order to have enough money for a down payment. Of course, that’s not a hard and fast rule that applies to everyone, but the fact is that some of the issues that could complicate saving include not having enough income, student loan and credit card debt, and the high cost of living. As a real estate professional I specialize in helping millennials navigate the uncertain waters of buying their first homes. While every situation is different, I can and will help you achieve your goals. I’m glad to share a few tips to help you prepare. First, don’t just save for your down payment; save extra. While it’s difficult enough to have a down payment as quickly as you’d like, you also need to consider other costs related to buying your home, like closing costs and fix-up expenses. Unless you purchase a newly built property, once you’re in the house you may encounter a number of expenses that you didn’t anticipate upfront. You’ll also have some general expenses. Maybe you’ll want to buy new furniture and repaint and redecorate. And, of course, maintenance costs are a fact of home ownership. Second, look at how you can restructure your spending habits while you save. It helps to have a budget that you follow strictly. You likely have some fixed expenses that are non-negotiable, like rent, an auto payment, a gym membership, and maybe utility bills. Then there are the expenditures you can modify. Spend less on clothing and entertainment. If you dine out often, consider cutting back on that. Pack a lunch for work rather than going to a restaurant. There are many ways you can contain your expenses. There are also some great digital apps that allow you to keep track of your budget. Download and install it. Third, learn and monitor your credit score. I’m sure that there are many people who’ve never even considered their credit scores until they had to make a major purchase. What you need to know, though, is that your credit score can affect your future purchasing power. Look it up, learn it and vow to keep it at a good level. Be assured that mortgage lenders, credit card companies and others have access to your credit profile. Do these things, and please contact me for more information. I’m glad to help. Comments are closed.
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Cecil Darren Frank - Toronto Real Estate AgentArchives
October 2019
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