Buying a home in your 20’s might just be the hardest thing you’ll ever do, but its also the most rewarding. I bought my first home when I was 23, keep reading to find out how I did it and how you can to!

Hard work

If you want to own a home and think its going to be easy, think again. You’re going to have to work hard to save up enough money for a down payment.

Since I can remember, I’ve wanted to own my own home. The goal of owning my own home (and eventually multiple homes in the form of income properties) has been my main motivator for the past decade. Its even the reason I studied interior design in college. I had a fantastic vision of myself flipping homes for a living. But things were tough after I graduated from college.

Although I was out of school and finally “free” I was also financially responsible for myself and my future. The interior design market in Vancouver is extremely competitive. As a result young designers with zero experience – AKA me – are a dime a dozen. I was fortunate enough to land a part time design gig while I searched for full time work. After a few months of job hunting I decided to get a 2nd part time job. I ended up getting hired at a local restaurant delivering Chinese food in the evenings. That’s right ladies and gents, I was a Chinese food delivery driver with a bachelor’s degree.

You might need to get a 2nd job

I eventually got a full-time interior design job, but as a recent grad only making $15 an hour, I kept working at the restaurant on weekends for extra cash. Because I was working two jobs I didn’t have a ‘day off’ for two years. TWO YEARS. I sacrificed countless weekends with friends, free time, and sleep. But you know what? I am so thankful for that job because I was able to save the money needed for a down payment. In two years, I had saved $45,000, the amount I needed for a 20% down payment.

Save and sacrifice

I was fortunate enough to move back in with my parents after college. Lets be honest here. No one wants to move back in with mom and dad after four years of freedom, but if its an option for you, take it. I will be eternally grateful that my parents let me stay with them as I adjusted to adulthood. I was paying them room and board (at a killer price to be fair) and had my own bills like cellphone, car insurance, gas etc. But I was able to save the rest. After making some sacrifices – I quit buying takeout, limited my shopping, and lived frugally – I was saving over half of my income.

Be smart with your savings

Now that I was saving over half of my income, I wanted my money to work for me. I didn’t just let my savings sit in my bank account. I invested it. I opened a TFSA (Tax Free Savings Account for Canadians) and invested my money in low risk mutual funds. This was by far the best thing I could have done with my money. By the time I withdrew the cash I needed for my down payment, my TFSA investments were going up an average of $400 a month. I was making an extra $400 a month – tax free! If you want to buy a home, you need to be investing your money as you save up a down payment. Low risk stocks with a return of 3-4% is all you need. Be careful with high risk stocks as there is a potential, you’ll lose more money than your putting in. We want to move forward, not backwards when it comes to savings.

Adjust your expectations

We all dream of buying the perfect home, but if you want to buy a home in your 20’s you’ll need to adjust your expectations.

Look into cheaper suburbs surrounding the city
Consider buying an older home to fix up
Look into other options like a townhome, or an apartment/condo

I grew up dreaming about owning a beautiful home with a big yard and a view of the ocean (dare to dream right?!). As I reached adulthood I quickly realized I would need to adjust my expectations. Living in Vancouver, arguably one of the most expensive real estate markets in the world, owning a home in your 20’s is nearly impossible. I really wanted to get into the market but I knew I couldn’t afford a detached home. I started looking at other options in suburbs surrounding the city and ended up buying a two-bedroom condo in New Westminster. With real estate prices on the rise, it was extremely important for me to get into the market as soon as I could. Once you’re in the market (even if its only a condo) you will quickly start to gain equity and have way more buying power in the future. I’m all about playing the long game when it comes to real estate and patience is key. My apartment has doubled in value over the past three years and now I have a great stepping stone to move onto something bigger and better!

Build a security net

Owning a home is scary. Its stressful. And its expensive. As a young 20 something it can be really scary to dive into a mortgage.

What if there is a recession?

What if I lose my job?

What if I can’t pay my mortgage?

Can I afford this?

I had all these thoughts when I purchased my first home at 23. I’d only been in the work force for two years, and with my current employer for a few months. Not exactly rock solid job security. I was honestly scared something would happen and I wouldn’t be able to pay my mortgage anymore. I was able to relieve some of that pressure by getting a room mate. Renting out my 2^nd bedroom added much needed income and took some of the pressure off myself to pay for the entire mortgage. Now I have a security blanket if I can’t afford the entire mortgage myself. Plus, it’s increased my income and I’m able to save more money.