I know, I know – who wants to purchase a home that they read about on Friday the 13th – right? It’s just the recipe for a bad after school special! ha!
THIS is a little property that would be the perfect fit for a First Time Home Buyer or a new student at U of C. When I was in University, I easily spent $700 to $1000 each month, renting rooms, living in residence, and moving all over the place over my 4, (cough cough), 5 year degree. What a huge outlay of expenses over that 5 year period. Consider this, if you’re parents put money into your RESP and it is available to you, what about using a small portion of it for a down payment on this AMAZING condo, walking distance from U of C.
Purchase price: $220,000
Minimum Down Payment: $11,000 (that’s right)
Minimum Mortgage Payments: $973.70
Condo Fee: $486 (hold the phone – this sounds like a lot of money)…
This condo fee includes, Exterior Maintenance, Heat, Insurance, Landscape And Snow Removal, Professional Management, Reserve Fund Contributions, Utilities For Common Area, Water/Sewer. So this means that, essentially, you’ll have no other payments.
SO…total montly payment of about $1500. Now, rent a room to a friend/student/exchange student and charge them $750/month (which is a great deal for an amazing condo like this one)! You can live for a total monthly payment of $750/month!
Let’s see what that looks like after 5 years…(assuming no changes to the interest rate). You will have made payments that total $58,422 over 5 years. Of those payments, $33,391 went to reducing your mortgage amount. That means that you built $33,391 in equity over the 5 year period (and you still just paid your $750 room rent).
Purchasing a home and figuring out creative ways to have others make your mortgage payments is truly a way to come out of university with a lower debt load and some equity to start building your life. Connect with me if you want to talk about more strategies to get started on the right foot!