May 2014

Always keep learning…

It’s an age old adage that still holds true today. And presently I am learning from my two boys, who seem to know how to work my smartphone better than I do. Young people always have fresh ideas, and they tend to push the boundaries of what we term “the norm.” It shouldn’t be a surprise to any of us then that they are the new buyers in the housing market.

New buyers on the market:

Young singles

Young, single professionals are the new buyers in an already competitive market. But they don’t see it as competitive; they see it as opportunistic. That’s right: Twenty-something’s are getting into the real estate market in order to get a jump start on their “real” home. You know, the house with the yard? That one. But they know housing prices won’t let them buy a house with a yard whenever or wherever they’d like. Getting into the market now, while young, means they are building equity and saving towards the home of their dreams, one step at a time.

In certain cities, like Vancouver and Toronto, renting can cost as much as a mortgage payment, once you put 10-20% down. Why wouldn’t you put money in your own pocket for the future instead of paying someone else’s mortgage for them? And if you get into the housing market before prices increase, any profit you make at the sale can go towards purchasing a bigger or nicer home in the future, or to reducing your monthly mortgage payments. Some 20-year-olds see their first, small home purchase as a “dress rehearsal” – a micro-view of the cost and responsibility of owning their eventual dream home.

As a single professional moving up in the property ladder – say you go from an apartment to a small house – having a rental unit is a good idea if you can obtain a property with one. Why? Because if something happens to you, it would be ideal to have backup income. Normally, partners would supply a second income if one person became sick or lost their job. But with renters, you can guarantee you have income to cover the cost of your mortgage, even if something happens to affect your personal income. Another good idea is to obtain either disability or health crisis protection insurance while you are single. Either of these insurance plans will help you cover the cost of your mortgage in case a health problem arises.

How do you get in on the market now as a young, single professional? Look at the total costs buying a home incurs. Your ideal property mortgage amount, plus closing costs, maintenance and tax expenses should be added together and calculated into monthly payments. Then, set up an automatic, monthly transfer into a TFSA for this amount, and see if you feel comfortable living within your new budget for a few months. You will have a better understanding of what you can afford and you will have saved more towards a down payment.

Some young professionals are now transitioning into their 30s and are looking at moving up the property ladder since they’ve established good credit and equity. Others entering their 30s and are just now trying to get into the real estate market are finding it impossible to afford anything. Start young – just like you would with an RRSP. The younger you start, the more equity you grow. The more equity you grow, the sooner you can own your dream home!

Based on an article originally published by the Financial Post.

Personal Note…

Finally start getting outdoors…

May is when we finally start getting outdoors with the boys. It’s time to camp! We are all so excited to visit some of our favorite spots from last summer. I am also starting my second ASA Leadership bootcamp. I am motivated to increase my public speaking ability so that I can share all my well-earned wisdom and knowledge!

Business of the Month…

No Problem Networks

This month’s featured business is No Problem Networks, a service-oriented company that is committed to ensuring your computing environment works for you. They offer a wide variety of services to cover every need and problem, from network management to offsite backup. They also provide products ranging from desktop PCs to servers.

No Problem Networks offers service to many different types of businesses. If you have a computer, they can help! It’s their business to ensure your business keeps running smoothly, with no technological hurdles. Contact Paul Diamond today to make your computer work for you – with no problems!

Young and Single?

Young and single? No, sadly I’m taken. But I can help you create a plan to get into the housing market sooner rather than later. Or, if you’re ready, I can help you find the right, flexible mortgage for you to purchase a starter property. The sooner you start to save equity for your dream home, the better!

Coming up next month

Want to Minimize Your Mortgage this year? Simply submit an approved mortgage application with me and you could be entered to win up to $100,000 to put towards your mortgage. The link has all the fine print. Good luck!
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