Over the last year, many people have been saving up their money as shopping for goods and services became more restrictive than ever. Whether the savings were intentional or not, people are now wondering how they can spend it wisely. Here’s why putting your pandemic savings towards a downpayment on a house might just be your answer. 

Money-Wise Decisions: Using Your Pandemic Savings On a Downpayment

Throughout the past year and a half, many people have curbed their spending habits. In fact, the average Canadian has saved $5000 during the pandemic. With programs, events, travel, and shops closed down, money was used primarily on essential items. While some people opted to put their unused cash into home renovations or paying off debts, others continued building up a hefty rainy day fund. Now, as we see the world slowly revert back to a shadow of its former self, people are looking for ways to spend their savings wisely. With the real estate market levelling out, now is the perfect time to use your savings towards a downpayment on a house. Buying real estate is an excellent long-term investment, and doing it now is a great way to see how good things can blossom from some of our toughest times. Here is how spending your pandemic savings on a new house can help you. 

Buying Real Estate Will Build Wealth and Equity
Spending money is easy because we live in a society that makes it effortless and accessible. Saving on the other hand, requires a plan, and a lot of discipline. Fortunately, by purchasing a house, you can ensure long-term wealth by means of “forced savings”. By paying your mortgage payment every month, you accumulate more equity. Once you have made all your mortgage payments, your home is now an asset worth hundreds of thousands of dollars. 

Mortgage-Free After 25 Years!
While renters will be dishing out monthly payments as long as they remain tenants, owning your own home gives you the opportunity to be mortgage-free after your loan agreement is paid off, typically in 25 years. With no monthly mortgage or rental payment, you will surely be able to reap the benefits and enjoy retirement to the fullest. 

Sense of Community
When purchasing a home, you commit yourself to a community and neighbourhood that you plan to grow in. You take more time getting to know your neighbours, frequenting local shops, and participating in any community events or activities that may take place. Homeowners often find a great sense of stability, security and community in the neighbourhoods in which they reside. 

Potential For Income
If you want to continue with your pandemic savings spree, purchasing a home can still allow you to make some extra income to tuck away. With options like Airbnb, renting out rooms, or renting your home out altogether, there is potential to increase your monthly cash flow and continue to build up your rainy-day fund. 

Pride Of Ownership
Lets face it, it’s not always easy to get a rental looking the way you want it to. With restrictions on how you can alter a rental dwelling, you might be at a loss of how to let your personality shine through and really make your home into the comforting place you want it to be. Owning your own home gives you the freedom to design it the way you want and show true pride of ownership. 

While buying a home is a major decision and a huge commitment, the experience is rewarding and the financial and lifestyle benefits that coincide make it well worth the price tag. When you find the right home in the right community, you surely won’t regret your decision to take the plunge. If you are looking to purchase a home, get in touch with me. I look forward to hearing from you and helping you navigate this very exciting time in your life. 

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