BUYING MY FIRST HOUSE: Where, When and How?
I'm buying my first house!
Well not yet, but soon! This blog post will be about my next big goal which is buying my first home in 2023. And by home I mean (to live in), I'm also looking to buy my first rental property this year *cross fingers* but that will be for another blog.
Below I will list my saving plans, how and how much I will be saving to reach this goal. How much I currently save for my future home while paying all my bills. Finally, how much I will be saving for my down payment.
Enjoy,
Where do I want to buy?
I'm looking to buy a town house or detached house in areas such as Bolton, Brampton or Hamilton. There's cities are surprisingly cheaper than most at the moment (approx. 500k). These cities also have GO bus and train services which is very important to me since I work downtown Toronto.
How much do I plan on saving?
I plan to save $54,000 in 2.5 years. Yes, I know that is a lot of money to save. It's basically my income for the year. But big goals need big actions, if you're going to be successful you need to sacrifice. I'm currently paying $1,500 a month on OSAP which is preventing me from saving a lot of money. But with God's grace and my payments coming to an end in the next year, I will be able to start increasing my monthly savings to about $2,000 a month. This will put me over my goal of saving $54,000 in 2.5 years.
How much do I currently save?
With Car insurance, memberships, family, friends and travel costs (spending about $1,000/month on lifestyle). I end up saving about $400-$600 per month after my OSAP payments. This range works best for me. Some months my car needs a tune up so I'll only save $200 and some months I won't party with my friends so I'll save $600. It really depends, but right now I try not to stress much about how much I'm saving because I am in the progress of completing a goal which is paying off OSAP. It's important to prioritize, you can't save for everything at once. As a determined saver I know my saving's will go up once the OSAP goal is completed.
How to increase your savings and still live life?
As explained, don't stress yourself too much. I tend to treat myself after a milestone! For example, if I save $500 a month for 6 months straight I will give myself one free month where I don't have to save as much. That $500 can go to the new phone that I've been dying to get (or whatever floats your boat). You have to find balance or you're always going to be stressed, unhappy and unsuccessful.
When will I be ready to buy?
I will begin my serious hunt in 2022, hopefully by then the market has crashed hahaha. I plan to move in the following year. I'm still flexible in my time frame, my goal is 2023 but if I have extra money one month or get a higher paying job then I might be ready earlier or the opposite. Anything can happen so always have a open mind when creating you're goals. Be realistic but also optimistic (hope for the best but always be prepared for a set back).
How will I get approved for a mortgage?
You tell me, this is one piece of the puzzle that I'm trying to figure out. I know a few things.
1) Credit! If you don't have good credit you better start building it
2) Down payment! (5% for new home buyers but always have more than that) Closing costs, furniture, property taxes will all slap you in the face.
3) Income! This is the hardest part, you can have $100k saved and make $30k a year and you won't get approved for a lot. So think about how much you make because that will affect how much the bank lends you.. Or get married haha
How will I survive after buying a home?
That's the real question, you'll never know until you purchase your home. To prep for all the costs, make sure to calculate and make sure that your monthly income is enough to cover mortgage, utilities, property tax and more. You want to prepare to pay these bills and also have enough leisure funds in your account. Don't buy a house if you can only afford the house. You still have to eat, travel and pay more bills.
I hope you enjoyed reading about my next big saving venture.
So please, don't invite me out, I am saving for my crib!!!
Next blog will explore how I survived university as a BROKE and STRUGGLING student athlete.
-Coll
Well not yet, but soon! This blog post will be about my next big goal which is buying my first home in 2023. And by home I mean (to live in), I'm also looking to buy my first rental property this year *cross fingers* but that will be for another blog.
Below I will list my saving plans, how and how much I will be saving to reach this goal. How much I currently save for my future home while paying all my bills. Finally, how much I will be saving for my down payment.
Enjoy,
Where do I want to buy?
I'm looking to buy a town house or detached house in areas such as Bolton, Brampton or Hamilton. There's cities are surprisingly cheaper than most at the moment (approx. 500k). These cities also have GO bus and train services which is very important to me since I work downtown Toronto.
How much do I plan on saving?
I plan to save $54,000 in 2.5 years. Yes, I know that is a lot of money to save. It's basically my income for the year. But big goals need big actions, if you're going to be successful you need to sacrifice. I'm currently paying $1,500 a month on OSAP which is preventing me from saving a lot of money. But with God's grace and my payments coming to an end in the next year, I will be able to start increasing my monthly savings to about $2,000 a month. This will put me over my goal of saving $54,000 in 2.5 years.
How much do I currently save?
With Car insurance, memberships, family, friends and travel costs (spending about $1,000/month on lifestyle). I end up saving about $400-$600 per month after my OSAP payments. This range works best for me. Some months my car needs a tune up so I'll only save $200 and some months I won't party with my friends so I'll save $600. It really depends, but right now I try not to stress much about how much I'm saving because I am in the progress of completing a goal which is paying off OSAP. It's important to prioritize, you can't save for everything at once. As a determined saver I know my saving's will go up once the OSAP goal is completed.
How to increase your savings and still live life?
As explained, don't stress yourself too much. I tend to treat myself after a milestone! For example, if I save $500 a month for 6 months straight I will give myself one free month where I don't have to save as much. That $500 can go to the new phone that I've been dying to get (or whatever floats your boat). You have to find balance or you're always going to be stressed, unhappy and unsuccessful.
When will I be ready to buy?
I will begin my serious hunt in 2022, hopefully by then the market has crashed hahaha. I plan to move in the following year. I'm still flexible in my time frame, my goal is 2023 but if I have extra money one month or get a higher paying job then I might be ready earlier or the opposite. Anything can happen so always have a open mind when creating you're goals. Be realistic but also optimistic (hope for the best but always be prepared for a set back).
How will I get approved for a mortgage?
You tell me, this is one piece of the puzzle that I'm trying to figure out. I know a few things.
1) Credit! If you don't have good credit you better start building it
2) Down payment! (5% for new home buyers but always have more than that) Closing costs, furniture, property taxes will all slap you in the face.
3) Income! This is the hardest part, you can have $100k saved and make $30k a year and you won't get approved for a lot. So think about how much you make because that will affect how much the bank lends you.. Or get married haha
How will I survive after buying a home?
That's the real question, you'll never know until you purchase your home. To prep for all the costs, make sure to calculate and make sure that your monthly income is enough to cover mortgage, utilities, property tax and more. You want to prepare to pay these bills and also have enough leisure funds in your account. Don't buy a house if you can only afford the house. You still have to eat, travel and pay more bills.
I hope you enjoyed reading about my next big saving venture.
So please, don't invite me out, I am saving for my crib!!!
Next blog will explore how I survived university as a BROKE and STRUGGLING student athlete.
-Coll