It is possible for first time millennial buyers can gain an edge on the housing market! Buyers right now have a slight edge; however it hasn’t turned into that ‘buyers market’ that a lot of buyers think we are in. Here is 3 things you can consider. 1. If you are serious about the market, how much you spend weekly on unnecessary purchases and cap your discretionary spending. Maybe you can chill on the latte with extra foam, impulse buying (do you need those new shoes?) and unnecessary subscriptions. How do your credit card balances look? Your credit score will improve as you pay down your balances and a higher score could help you land a better rate in the mortgage approval process.2. Start saving sooner than you think for your down payment. Set up a savings schedule coordinated with your payday so an automatic deduction is put into a separate account.3. Think of innovative ways to buy into the current market. Some millennial buyers are getting help from family but others are banding together with friends/siblings to share the costs. Maybe think of purchasing a property with income potential to help pay off your mortgage faster. Don’t forget, there are usually strings attached with purchasing with help from others, clear communication on the relationship will look is key. Are you paying mom and dad back, if so, how will the payments be scheduled? Put everything in writing and have everyone agree and sign accordingly. As a recap, pare down your buying needs, keep in mind the you should not be house poor and be able to afford items such as blinds. Consider a condo as a first purchase, rather than jumping right into a detached home. As a first time buyer, there may be some sweat equity required with your first home to make it your home. Budget, budget, budget! You’ll need 3-4% of the home’s purchase price toward inspection, land transfer tax (municipal and provincial if you are buying in Toronto) and lawyer’s fees. You can do this, it is possible, with some planning and focus! And remember, to call me to have a conversation, before you start looking for your home!
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