If you're looking to buy a Toronto condo in the near future, you might want to start saving.
According to a recent report, the median price for a condo in the 6ix is around $565,000.
While the high prices may seem overwhelming, one Ontario real estate agent reveals his top tips on how to start saving for a space of your own.
Start contributing to your RRSP.
Alex Hood, a real estate agent at Strata.ca, tells Narcity that if you haven't already started contributing to your RRSP (Registered Retirement Savings Plan) you might want to start doing so now.
"These contributions will save you on income tax. You can also borrow from your RRSP for a down payment," reveals Hood.
"This borrowed money will not be subject to income tax."
On top of this, the Strata agent states that you also shouldn't carry a balance on your credit cards.
"Don't carry a balance on your credit cards, as that interest could be going right into savings."
"Build your credit by paying your balance on time, so you have access to better loans and interest rates."
Make a savings plan and see what expenses you can leave behind.
Hood states that when looking to buy your first condo, you should start making a saving plan and stick to it.
"See where your money is going. What regular expenses can you cut out? Some examples would be scaling back on eating out/delivery services."
"Also, how much are you spending on your commute? If your household has 2 cars, can you live with one? Is public transit or car-share an option? Due to the pandemic, many jobs are work-from-home; many will stay this way even after the pandemic is over. So maybe it's time to rethink your needs."
"You can still travel, eat well and live a fulfilling lifestyle...within a planned budget. If you're expecting a raise, budget that extra income into your savings."
It's also worth noting that depending on the price of the property, you can buy your new home with as little as a 5% downpayment.
Don't wait for your dream home.
Hood tells Narcity that getting your foot into the real estate market is crucial, even if it's not with your dream home.
"Don't hold off on buying because you can't afford your dream home. Getting your foot in the market is a huge step towards that end goal."
"Your first venture as a buyer might be a small condo. If this is not practical for your lifestyle, consider purchasing it as an investment property instead."
"When you're a renter, you're essentially paying someone else's mortgage. With spring around the corner, the market is heating up and you could be left behind."
"So jump on the wagon, and achieve your goals by investing smartly in real estate."