Posted 1.10.13 @ 9:25
Nearly anyone who is interested in buying Oakville real estate will need to make a down payment on their home purchase. Most lenders now require a down payment of at least ten percent and some buyers may need to pay twenty percent down. If you don’t have your down payment already, how well do you save? While our Oakville luxury realtors can best advise you on how much you will probably need to save to buy the home of your choice, having at least $10K to pay down is ideal.
A recent survey by the Real Estate Council of Ontario looked into how much Ontarians were willing to sacrifice when saving up the money that they need to buy a home or to make a down payment. The survey found that around two-thirds of the participants or around sixty-five percent, had saved for a home purchase at one time in their lives.
Among study participants ages eighteen through thirty-five, around thirty-eight percent were currently saving to buy a home, compared with only eight percent of those who fell into the thirty-five to fifty-four age group and the four percent of those seniors aged fifty-five and older who were saving.
Not surprisingly, those survey respondents who had completed a university degree or who had income in excess of $100K per year were more likely to sock away cash for a future home purchase than study participants who earned less or who had less education.
But how far were Ontarians willing to go to save for that dream home purchase? How far were they willing to cut back? Across the board, most savers were willing to cut back when it came to indulgences in order to save for a home. Seventy percent reported forgoing entertainment in order to pinch pennies for a home purchase, while vacations were a big no-no for sixty-nine percent of respondents. Vacations were ruled out more often among those aged thirty-five to fifty-four than their younger counterparts. Non-essential spending on electronics was also hacked fifty-one percent by survey participants. Simply put: the more you can cut from your budget, the faster that prize piece of Oakville real estate will be yours.
One big shocker from the survey found that women were more willing to cut their clothing budget than men, with fifty-five percent of women buying fewer clothes and only forty-three percent of men willing to give up their clothing shopping habit. With so much beautiful Oakville real estate on today’s market, giving up non-essentials and stretching your clothing budget can help you reach your savings goals faster.
As a group, men were more likely than their female counterparts to say that they made no reductions in spending when saving to buy a home. In fact, twenty-two percent of men in the survey say that they didn’t scale back their spending while only fourteen percent of women said the same.
Some survey participants indicated that they cut back on food and eating out when they were saving for a home. By cooking meals at home and avoiding the fast-food joints and takeouts, you can save a bundle of money to put towards a down payment on your chosen Oakville real estate.
For more tips on saving, see your Oakville realtor now.