There are many ways to prevent overspending on real estate that I want to make my reading audience aware of. Whether you are looking for downtown Vancouver apartments for sale, or condos for sale in downtown Vancouver, buying smart is important. Here’s how you can do so!
Ways to Prevent Overspending on Real Estate
First of all, and most importantly – don’t overspend! No one should be spending more than 40% of his or her gross household income when buying a home.
What That 40% Includes:
- monthly maintenance costs
- putting away money each month for property taxes
- monthly insurance
- monthly mortgage costs
- strata fees
Going beyond these parameters could put you into overspending mode. If interest rates were to go up, or costs of running your home increases, this could quickly become unaffordable.
Ways to Combat Costs When Buying a Condo
Other ways to combat condo costs includes: creating rental income through renting out a room or acquiring an exchange student. With so many people looking to live in Vancouver, but unable to afford it, providing rental accommodation within your home will allow you to pay down your mortgage and even provide a much needed service!
Other Cost-Saving Measures Include:
- get pre-approved from a mortgage broker who can help you understand all the costs involved when owning a home
- respect your lifestyle and buy accordingly (what can and can’t you live with/without?)
- know your budget – write it down so you are not overspending each month
- do you own a car and will you require parking, or would it be beneficial to sell your car
- take into account savings on your commute if you work downtown
Finding ways to help you pay your mortgage can cushion some of your costs. In the case that you have already overspent on your Vancouver condo purchase, the aforementioned ideas can help keep the payments manageable.
Put More Down on Your Vancouver Condo Purchase
Whether buying into a downtown Vancouver apartments for sale, or one of many condos for sale in downtown Vancouver, the more you put down, the less you will be “overspending”. So use your savings to put as much down as possible on the purchase of your Vancouver condo. With historically low interest rates – this a financial strategy worth considering.
As a Vancouver real estate expert who specializes in buying and selling Yaletown condos, I am here to ensure you do not overspend on your purchase, and look forward to helping you buy a home that is right for you!