It’s always inspiring to know many young adults are already thinking of owning a property before they even reach 30, its freedom from their parents or landlords, a declaration of independence if you will.
Yesterday, Aaron Dulmage, one of Team Leading Edge’s Realtors, hosted an Open House at 1851 Lemieux Close. It was a step closer for Edmontonians to finally own a piece of real estate. Sooner or later, you'll be in the same situation they were in… driving to a specific location to view a specific property-it’ll be an exciting time!
To help you successfully go through this venture, the team has gathered 3 simple tips to serve as a guide and a reminder.
1. KNOW YOUR FINANCIAL LIMIT – We’ve always mentioned this when it comes to mortgages; being approved for a certain amount of loan doesn’t mean you should take it.
It would feel amazing if your mortgage company approved you of a $400,000 loan; it proves that you’re earning enough to finance the payment of that loan.
The problem here comes with the monthly payment for the next 5-10 years. You may have to sacrifice a big part of your lifestyle just to payback the mortgage for the house. No more fancy dinners, out-of-country vacations, car upgrades, and new appliances just to make good with the monthly payments.
Worst yet, you have other payments to settle like energy bills, cable TV, mobile plan and don’t forget the groceries.
What if you had to make repairs for the plumbing, electricity and ventilation?
If you get blinded by the money that the mortgage companies will lend you and not calculate the other expenses outside of the selling price, you may end up in financial ruin, so know your financial limit and stick to it.
2. PLAN SHORT & LONG-TERM – Set a 3-year, 5-year and 10-year plan.
Short-term plan would mean reviewing if the property you like is close to your workplace, good transportation and has the necessary establishments within close range. Time is gold. It would not be productive for you to travel long hours just get to your office—worst yet, doing this for the next 3 years.
Long-term plan would mean estimating the future value of the property (just in case you’ll sell after 5 or 10 years or have it rented out).
3. PLAN FOR THE MISCELLANEOUS EXPENSES – Aside from the costs we mentioned in our first tip, you also have to plan and save up for expenses such as the Home Owners Association Fees, insurance and taxes.
Being independent can be quite expensive but it should not discourage you from pursuing it. Draw up your plan and act on it. You do not need to own a 3-bedroom house right away, a 1-bedroom condo would do. It’s not a contest on who has the most number of rooms or has the biggest square footage. No. It’s all about gaining that freedom that many struggle for.
Remember, you should not worry because you won’t go alone in this journey. You team of Realtors will help you get through this-and its free of charge!
Come and call the team today at 780-634-8151.
If you liked this article follow the team on Twitter at @teamleadingedge. Make sure to subscribe to Team Leading Edge to get newsletters on the Edmonton Real Estate market.
Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
Subscribe and get the daily news, updates and latest trends in Edmonton real estate.