1 minute read.
Nowadays, purchasing your first home is harder than ever. Between stringent lending rules and astronomical prices, it’s easy to feel defeated before you even begin. Living with your parents may not be terrible right now, but down the line, when life becomes a little more complex, the call to independence will be like a siren song that can’t be ignored. School is done, your career has started and you may not be thinking about buying a home right now. You may not be even thinking about seeking out advice from a Realtor right now BUT I’m thinking about you!
It’s Never Too Early to Start Saving. Odds are, if you’re living at home as opposed to renting an apartment, your parents are likely giving you at least a little break, if not a total break on rent. It may feel like high times when all your new-found career money is going in your pocket, but start putting it away so you too can own a home someday.
The best approach is to make sure that you have a plan. If you’d like to find out what down payment expectations are these days and how much to sock away based on how many years you want to save, we can help you with that or if you’re thinking ‘Knowledge Broker, I like you, but I’m not quite ready to talk to a Realtor,’ that’s ok too. There are plenty of online calculators out there that can give you some quick answers. For instance, if you plan to save for seven years and you need to have $50,000 down - quick math will tell you that you need to save approximately $7,100 per year! It may seem like a large number but if you’re lucky enough to be living at home still and not paying market rent, it is entirely possible.
If you are renting an apartment, you obviously won’t be able to save as much annually unless you consider cost-saving measures such as not owning a car or sharing your space with a roommate to save on costs.
The simple point we are trying to make is that it is NEVER too early to start putting some money away if you want to enter into homeownership one day! And hey, if you save more than you need once it comes time to buy, you’ll have a little left over for some new furniture too J