Dear Friends,

Home buying is the theme of this newsletter because so many of my clients have it as a goal and David and I have decided to make it our goal too.

When it comes right down to it there are a lot of good financial reasons to buy a home. Not only do you build up equity every month by paying down your mortgage, but also having a mortgage free home in retirement is one of the best financial plans anyone can make.

And there are a lot of very real emotional reasons why people want to own too, like wanting roots and a place that is all your own. David and I acknowledge both our financial and emotional motivations, and so, have decided to map out a plan of action to buy a home.


email: sheila@moneyreallymatters.ca

P.S. For tips on home buying join me and Realtor Patricia Houlihan at my next Coffee Talk: Buying a Home: Its Easier Than You Think! April 25th at Bojangles in Yaletown

Does it really make sense to buy a home? In Vancouver, prices have gone up as much as 30 - 40% over the last 3 years. You might think that would be a deterrent but our record low interest rates still prove to be a serious enticement to buy real estate. And, what other investment can demonstrate such a high tax free return on investment and give you shelter from the rain in the colour scheme of your choice?

There is no doubt, be it a condo apartment, a townhouse, a carriage house or a bungalow with a white picket fence, it’s a BIG investment. And it can feel like an overwhelming endeavor. It is important to remember that buying a home, particularly if it is your first, is actually the last thing you want to do - sequentially speaking. The first step is dreaming, then goal setting, followed by researching, and of course saving.

David Bach, author of Start Late, Finish Rich has a great story that illustrates the journey one man took to buy his first home. The story begins with the man giving all sorts of excuses as to why he couldn’t possibly buy a home: in debt, wife having a baby, etc. But, David challenged him and said, “What if you absolutely had to buy a house in 18 months – what would you do?” The man thought about it for a minute and said, “I guess we could move in with my wife’s dad, pay down our debt and start saving for a down payment.” As he was talking, he starting thinking, “Hey we could do that!” And so they did. Two years later they achieved what they thought was unimaginable. In reality, it was the minute the man let himself imagine it was possible that it all came together.

Moving in with your father-in-law may not be the answer you are looking for. To discover how you can get on track with your own home buying goals, sign up for Money Matters Getting your Financial House in Order Money Coaching Package and find your own way home.

Read more on Client testimonials...

	Set a goal: The trick is to make sure your goal is true to your heart and achievable. Something like ”I want to buy a townhouse on the West side by September 2006”.
	Make a Plan: A plan is a list of action steps you need to take to make your goal happen. For example: Pay down debt by January 2006 Save enough for a 10% deposit by September 2006 Ask for raise at work at the next review Sign up for Money Matters Get your Financial House in Order Money Coaching Package
	Start Saving: Pretend you own a home now. If your current rent is $1,000, and your mortgage will be the same, then put an extra $500 (real dollars) into a savings account each month to cover your pretend condo fees, maintenance costs, taxes etc.

If you can do it, in a year you will have saved $6,000 towards your down payment and you will have had plenty of practice living on the budget of a homeowner!