Start Saving for Your Home Down Payment with These Tips

04 June 2019
Robert Greenberg Team

Everyone needs to start somewhere, and it’s never too early to start thinking about a real estate investment. You may not be in the market for a luxury real estate investment yet, but here are some tips for saving for a down payment that will help you get there.

Start with a Budget

The best way to start saving money is by creating a budget. A budget allows you to determine what you will and will not spend money on, and how much you’re willing to spend on necessities. Setting spending parameters and keeping a record of where your money goes will better your ability to save.

Really Think About Your Spending

Once you keep a record of how you’ve been spending money, you may be horrified by how much you’ve splurged on unnecessary expenses. Take this as a wakeup call to start prioritizing how you spend your money. Only you can decide what is and isn’t necessary, but be sure that you take the time to make an informed choice on every purchase. Try to make your spending a reflection of your values and put that future down payment #1 on the list.

Sell Your Stuff

Everyone has some sort of cap on how much they can realistically save over time; it depends on income and fixed expenses. Another way you can collect savings is by selling things you don’t want or need anymore. Especially consider watches, jewelry, and tech gadgets, as they can all provide a decent amount of cash to put aside for your down payment.

Set Aside the Extras

Whenever you receive unexpected money, perhaps through tax refunds, birthday gifts, work bonuses, or even finding a $20 bill on the road, put it straight into your down payment savings. These pleasant surprises can add up quickly.

Work a Little More

If you have the time, consider taking on a part-time job or side hustle to rake in extra money. Even a small extra pay cheque will contribute significantly to your savings goal over the course of a year.

Practice Patience

The idea of investing in real estate is exciting, no doubt, but there’s no need to rush into it if you’re not ready. If you work hard and work smart to reach your savings goal before you start investing, that investment will take you much further.

If you’ve already been practicing these savings tips and are ready to invest in Toronto luxury real estate, get in touch with top Toronto real estate agent Robert Greenberg to find the best investment property for you.