You're in your 20's. You've got a stable job. You have some money in the bank. You're financially stable by yourself, or maybe with a partner. And you've just seen another month of rent come out of your chequing account to pay off someone elses mortgage. As you sit there, you start thinking that maybe it's time for you to purchase your first property.
But before you start looking at real estate listings and picturing yourself enjoying the deck on a Friday, there are many aspects of the journey you need to consider.
1. Rent ≠ Mortgage
Unfortunately, it's not as easy as thinking you pay $1,200 rent, so you can afford a $1,200 mortgage. You have to take into account insurance, utilities, water, sewage, property tax and maintenance into your monthly expenses. And they add up quickly. Which leads to our next point.
2. Budget Budget BUDGET
Calculate your income, and consider all of the expenses you've got during the month. Then calculate what your budget might be when you own a property, taking into account all of the new expenses. Phone calls to local agencies and insurance companies should give you an idea on those expenses. After all of that is over, are you in the red or black? You shouldn't cut yourself too close to zero either. Breathing room is needed for any unexpected expenses that might come up.
3. The Job Stability
It's a question everyone must face head-on before you purchase a house. Very few people have complete job security, but how secure do you feel at your current job right now? If you have any inkling you might be unemployed over the next year or two, it's probably not the best time to get a home.
4. Are You Where You Want to Be?
Buying a home means you think you'll be living in that city for the next few years. Renting allows you to move on almost a moment's notice, but selling your home may take months for the right deal. Are you prepared to call that city home for a while?
If you've satisfied all of those concerns, congrats! You're probably in a position to buy a home. It's one of the most exciting times in a young person's life. Get in touch with us, and we can help you with the next steps.