Many millennials don’t see themselves as being homeowners any time soon. Many are burdened with more student loan debt than prior generations. Home prices are skyrocketing. Credit concepts are confusing. And with the new housing regulations implemented in 2018, experts anticipate home buying will be even more difficult. Below are three tips for millennials to get started down the path towards home ownership.
1. Redefine How You View Your Current Living Space
The first step towards home ownership is shifting your mindset. Redefine your current living space. Start thinking of it as the place you are staying until you can buy a home. Once you do, you will stop investing in making your apartment a “home” and start viewing it as a temporary stopping point. This will, in turn, encourage you to put your hard-earned money into a savings account for a down payment, rather than investing in creature comforts for your current space.
2. Save by Paying Yourself First
“Saving money” in a vacuum is difficult. Consider reworking your approach from “saving what you can” to making savings for a down payment part of your monthly budget. Take some time to document your fixed bills. Include rent, student loans, household bills, transportation costs, and other debt. Consider what you have left over. Set aside a certain percentage of the overage for fun – dining out, movies, and other entertainment you enjoy. Set aside a larger percentage of the overage for your down payment. Consider this a bill, just like any other. Put the money in a separate account, rather than co-mingling funds. This will help you keep your eyes on the prize.
3. Start Window Shopping
Even though you aren’t currently able to buy, start window shopping. Look at homes in your neighborhood – and homes in neighborhoods you are less familiar with. By getting experience looking for homes under your belt, you will be in a better position once you are ready to buy. Notice features you love, features that don’t appeal to you, and features you can live with. Pay attention not only to price, but also taxes, homeowners association dues, and extras. Does a condo come with off street parking? Is there a fee for that? By learning the market ahead of time, when you are financially ready, you will be ahead of the game.
Looking for a Home?
If you are looking for a home in the Toronto Area, give us a call. At Re/Max Hallmark Realty Ltd., our agents will help you find the perfect home for you – in the perfect neighborhood. With many neighborhoods to choose from, we are bound to find one in your budget, that suits you and your requirements. Contact us today to discuss your home buying goals and needs.