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The-Mortgage-Gal

Power-save your way to a down payment

 
Part 1 of 2
 

1.  Move in with your parents or in-laws

Explain that you're thinking strategically in moving back home.  The quickest way to get into the housing market is to maximize savings, which is difficult to do when you're paying the cost of rent in a big city.  You'll pay your parents a token amount of rent, but most of your savings will go directly into your house down payment fund.  Tell your parents to think of the grandchildren you'll be raising in the house you're saving for!

Yearly rent at:                                          $9600 ($800/month)
Minus token rent payments to parents:   $2400
One year savings:                                   $7200

 
2.  Move down one level of rental
 
If you have a two-bedroom apartment, try going down to one bedroom.  Or, trying squeezing into a bachelor apartment.  You could also look at moving to a cheaper part of town, as long as it won't jack up your commuting costs.  Get rid of stuff that won't fit in your new, smaller place, or store it in your parent's basement.  Don't spend money on a storage unit.
 
Yearly rent at :                                       $9600 ($800/month)
Minus yearly rent at:                              $7800 ($650/month)
 
One year savings:                                 $1800
 
 
3.  Sell your car and take the bus
 
You'll be saving on fixed costs such as parking, insurance, gas, maintenance and possibly car payments, and you'll be protected against the risk of financially catastrophic four-figure repair bills.  Rent a car or use a car-sharing service for those times when the bus won't cut it.  A cheap bike will help you save on bus fare.

 
Estimated annual cost of gas, insurance, maintenance and parking:              $5000
Minus estimated annual cost of a bus pass and occasional car rental:           $1500
 
One year savings:                                                                                            $3500
 
 
4.  Stop buying lunch
 
A pain, but worth it.  You'll have to think ahead by either picking up the right groceries to make your own lunch, or by scooping up after-dinner leftovers.  Healthier than your food-court lunch, which you're probably sick of anyway.
 
Estimated cost of buying lunch at $8 or so per day:                                      $2000
Minus cost of spending about $15 per week for stuff to make your lunch:    $  750
make your lunch:
 
One year savings:                                                                                          $1250
 
 
With these four habits you will be saving $13,750 per year.  Stay tuned in two weeks for another 4 ways to save more.
 
If you have any questions or concerns about this article or saving for a downpayment please call me at 250-862- 1806 or email [email protected]
 
 
 

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Tracy Head helps busy families get a head start on home ownership.

With today’s increasingly complicated mortgage rules, Tracy spends time getting to know her clients and helps them to better understand the mortgage process. She supports her clients before, during, and after their mortgage is in place.

Tracy works closely with her clients, offering advice and options. With access to more than 40 different lenders. She is able to assist with residential, commercial, and reverse mortgages in order to match the needs of her clients with the right mortgage package.

Tracy works hard to find the right fit for her clients and provide support for years down the road.

Call Tracy at 250-826-5857 or reach out by email [email protected]

Visit her website at www.headstartmortgages.com

Download her app: Headstart Mortgage Architects

 

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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