Save a downpayment to buy a home this year. Here’s how!Posted on August 3rd, 2017
You’re saving a down payment to buy your first home. Follow these steps and watch your down payment grow.
|1.||Are you celebrating
|Consider setting up a down payment account. Then let mom, dad, grandma, older siblings, aunties and uncles, and anyone else who usually buys you gifts, write a cheque instead.|
|2.||Have you accomplished
something important like
graduating from university
|Let relatives and friends know and tell them about your down payment account.|
|3.||Have you and your sweetie
been thinking about setting
a wedding date?
|Families and friends love weddings and will often ask what you would like for a gift. Mention your down payment account.|
|4.||Is clutter out of control?||Hold a yard, sidewalk, or garage sale and put the proceeds into your account.|
|5.||Be your own chef
|Breakfast, lunch, dinner or coffee out is expensive. Keep track for a week and you’ll see. Start making your own. You’ll be surprised at how quickly the savings add up.|
|6.||Use your savings.||You can use up to $25,000 of your RRSPS for a down payment under the Home Buyers Plan. The withdrawal isn’t taxable if repaid within 15 years.|
|7.||Get the first-time
|The property transfer tax is 1% of the first $200,000 and 2% of the remainder – but first-timers are exempt.|
|8.||Downscale.||If you have a one-bedroom apartment in a high-rent neighbourhood, consider switching to a bachelor suite or moving to a less expensive neighbourhood. Saving just $300 a month will add up to a down payment within a few years.|
|9.||One plus.||Consider buying with a sibling. You were roommates together all through childhood, so you know what you’re getting into.|
|10.||Two can live cheaper.||What about buying with a close friend? Make sure you spell out the fine print.|
|11.||The more the merrier.||Consider a larger property. Find the home you want and buy it as a group. Again, spell out the fine print.|
|12.||Stay home.||If your family arrangement is working, why not save for a down payment, buy and rent it out as an investment?|
|13.||Lower your expectations.||Instead of a bungalow, consider starting with a small one-bedroom apartment.|
|14.||Change your expectations.||If you can’t afford your first choice neighbourhood, find a home in your second choice of neighbourhoods.|
|15.||Handy?||Find a home in need of care and spruce it up! Get an inspection first so you know exactly what repairs are needed.|
Our Royal Pacific REALTORS® can help you find your first home – whether it’s a postage-sized condominium in downtown Vancouver, a townhome in Burnaby or Richmond, or a detached home in Coquitlam.
Give us a call at 604.266.8989.