Over the last 6 months I have worked with 7 Millennials who wisely bought either a condo apartment or a townhouse in London Ontario and had help in reducing their living expenses and for two of them, earning about $200 month over their mortgage, taxes, utilities and condo fees!
How did they do it?
Not to make this a 30 minute dissertation on buying a condo in London Ontario and for brevity sakes, here is how one did it.
He works for a gaming company here in London and by his words, a 'nerd'. He had been following my blogs and website for 8 months and finally emailed me that he was thinking about buying a house or a condo in London.
We met in my office and went over his perceived criteria, his fears , financing and his ideal property for resale because he felt headhunters would be coming after him in a year or two and wanted to ensure that if he sold his property, he would not get fleeced too much.
After doing what I call 'Market Education' (we looked at 3 houses in various parts of London & 4 condos, 2 apartments and 2 townhouses) we then sat down again and he was much more informed what he could afford and the style he preferred. He chose a townhouse because of the long and weird hours he was working and thought a hammer was a female hamster! (I s**t you not!)
At his work, his company is growing rapidly, people coming and going and we discussed about how he could maybe rent out a room and still have privacy, yet help in paying down his mortgage.
Well, that was a no-brainer! He had 5 co-workers who jumped at the idea. I helped him buy a 3 bedroom townhouse for a good price that offered some individual privacy and a place that was move in ready.
His mortgage payments, condo fees and taxes came to $912 per month ( he was paying $850 a month for a dinky apartment) and got a co-worker to rent a room for $500 per month and share the utilities! Also, I suggested he meet with one of the lenders I use, ( he said he was pre-approved by a mortgage broker , I said he should get another opinion), which he did, and he saved .7% in interest fees, less hassles and did not have to spend 13 hours filling out forms, documents and what colour socks he wore!
Who's the nerd now?
He was so pleased in how the whole process worked, he referred me to some of his co-workers, even one of the co-founders of the company. They are happy and I am happy!
You can be too!
Note: He just got a 2016 year end bonus and has used it as a downpayment on another town house!
I just wrote this new report that may get you thinking about retiring in 15-20 years. The problem with this plan is that it is too simple and we humans just like to complicate things and listen to opinions from people without any finacial sense!