For many Canadians property ownership is an important element in achieving future financial freedom. It’s not uncommon for people to wait to purchase a home until they’ve found a good job or even longer until they’re established in their career. Also, buying a first house or condo might not be foremost in the minds of young adults until they’ve met the right partner and settled into a marriage.
Today’s youth can be forgiven for leaving home ownership off their immediate wish list. However, there’s definitely merit in considering how to plan to own your own dwelling while you’re still in school. Here are my suggestions.
Pay off student debt
Student debt can be costly. Hats off to anyone who is managing to put themselves through school without accumulating debt. If you’ve borrowed money to finance your education, pay it off as soon as you can. Take a look at your budget to see if you can squeeze even a few more dollars out each month to put towards your student loan.
Be selective when it comes to making some money while you’re studying. This means finding the highest paying part-time jobs you can and looking for other ways to make a little income online. Whatever you can do to pay towards what you owe will allow you to start saving earlier for a mortgage down payment.
Improve your credit score
You might think that you have to be working full time to develop a good credit score. Not so! While you’re a student you can get a head start on improving your credit history. Any moves you make to pay down your student debt will count and if you pay off loans early that will count in your favour.
Don’t forget to use your credit card sparingly and pay the balance in full each month to avoid the very high interest that this form of credit comes with. This also shows that you’re a good credit risk when it comes to applying for a mortgage. Did you know that you can check your credit rating for free through TransUnion or Equifax to see where you stand?
Keep an eye on the market for a good deal
Start your property search early by keeping an eye on the market to see what houses are selling for in different areas of your city. At the same time, read everything you can about home ownership so that you’ll be well prepared to take on this responsibility. A little knowledge and planning can go a long way.
Make a list of questions to ask a real estate agent and quiz friends and family members about their house buying and owning experiences. Be aware that while your first property purchase is not likely to be your dream home, it will definitely give you a strong foothold in the market.
Rent out rooms to other students
When you do find the perfect first house or condo that’s reasonably affordable, remember that renting a bedroom or two to other students is often a great idea. This can help you pay your mortgage and set aside some funds for unforeseen expenses and to help with the cost of regular property maintenance. Plus, if you have a few student friends that need accommodation they may be willing to lend a hand with some of the caretaking tasks.
In closing
When you feel ready to begin your search for a condo or house or if you just have some real estate questions, please reach out to me. I’m only too happy to assist you with one of the biggest and best decisions of your life.
