Skip to main content

Secret to owning your first home

Most persons want to own their own home. To some its just a dream that starts to fade away as they grow older. To others it means finding a way to increase their monthly income or finding the right partner so that their dream can become a reality. As property prices increase steadily the qualifying income also increases sometimes to unattainable limits for  single income earner.
Let me just share a couple things I've come across over time.

Buy a fixer upper
I know it sounds strange but consider the cost of a livable fixer up in a good neighbourhood vs the cost of a completed property. Purchasing a fixer upper allows you to own your home, move in and do renovations over time. Please keep in mind that you should compare your monthly payment that is,  (paying a landlord vs owning your own property).

Rental Income
I know you first house is your home but its also a major asset in your portfolio. How comfortable are you paying the bank $3000,$5000, or $10000 monthly and because of this you have to make huge adjustments for 10-30 years of your life. I once came across a client who described themselves as being "house poor". The need to acquire that property overcame the realization that life goes on after you move in. Food for thought, average rental cost for a one bedroom apartment is $2500 and two bedrooms range between $3000-$4000. How would that affect your monthly payment toward your mortgage?

Years for Repayment
I remember when I was much younger i committed to a 30 year mortgage. As time passed I started to compare the total cost of the property. Choosing a shorter repayment option will save you thousands. Ask your banker about repayment options, lump sum payments and extra payments. Utilize online mortgage calculators to actually see how much money you'll save over time.

Labels:

Comments

Post a Comment

Popular posts from this blog

How to live beyond your last payday.

For many, retirement may seem a long way off. I have included a good example to show the true reality of your retirement income. Let us suppose you earn an income of $10000 monthly ,at age 35 and hope to retire at age 60. Try looking at your retirement from a monetary perspective. Put quite simply you would only have 300 months within which you will be paid $3000000. An individual who is not actively pursuing a retirement plan will be faced with even greater financial shortcomings when retirement hits. Registered annuities will pay a monthly income for the remainder of the annuitants life. It is usually a great solution for an individual to put aside small values monthly  and annuities even offer annual benefits via tax refunds. Lets take a look back at the above example. A great place to start is to consider investing 10% of that $3000000 toward your golden years . Therefore that $1000 per month guarantees you an income every month from the day you retire until the day you di
8 comments
Read more