It’s 11:00pm. You’re home watching TV and are a bit restless, probably because your bestie conned you into meeting her a few hours ago for a latte and now you’re WIRED. You’re watching one of those real estate shows where an agent is helping a young single find a property. Only this chipper 20something Redhead isn’t buying anything. And the stuffy Realtor isn’t selling anything either. They run around town entering into multiple offer bidding wars and losing every single time. It’s pathetic. But wait –it gets worse. All this paperwork and heebee-jeebee negotiation isn’t for a purchase –it’s for a RENTAL. Mortified? You should be. Renting is the fastest route to Financial Nowhere. It’s walking into that electronic store every month and buying a giant 55” LED Flatscreen TV. It’s taking it home and throwing it off the 21st floor of your high rise condo and watching your 1400 hard earned dollars go DOWN, Down, down.
In many cases buying is an option.
No downpayment? No problem. Talk to your bank about getting a line of credit to use towards a deposit on a pre-construction property. Preconstruction homes don’t require a mortgage until completion. So you can own without requiring a mortgage.
First time homebuyer? You can borrow up to $25,000 as an RSP loan to use towards a downpayment. An added benefit is the RSP contribution will boost next year’s tax refund.
Credit report not squeaky clean? Try a mortgage broker instead of the bank and access dozens of lenders that will provide you with competitive rates.
Concerned about monthly carrying costs? The amount you pay to rent your home in Toronto is only about $150 less than what it will cost you to own it. That’s just one less pair of shoes or one less new dress.
You can purchase your own home, and over a short period of time actually see that hard earned cash of yours start stacking up, instead of falling down.
Realtor & Investment Strategist