I presently pay a mortgage on my one-bedroom condo just outside of downtown Calgary, Alberta.
I love it, it’s cute, it’s manageable, it’s easy to clean and I have been renovating it since the day I bought it. Most importantly it’s affordable and in a well managed building.
Recently a neighbor confided to me that she was looking at selling her top floor 2 bedroom end unit and would allow me to make a first offer when the time came. She gauged approximately one year from now.
It has always been a goal of mine to own one more property as a rental unit and since she voluntarily offered this information to me, I considered it a sign that this goal of mine could be reached within a year from now.
In order to achieve this goal, I would need a 20% down payment (as a law all second mortgages need a 20% down payment on the selling price regardless if you choose to move into the property or use it as a rental)
Knowing this and that she would be considering selling her place for approximately $250,000, I am now know that I would need roughly $50,000 for the down payment itself as well as between 1.5-4% for closing costs, which includes the following:
- Home Inspection
- Land Title Transfer
- Legal Fees and Disbursements
Let’s use 4% in closing costs on $250,000, that would be $10,000 in addition to the down payment of $50,000, that I would need to save to be able to purchase her condo.
So now that my numbers have been researched, crunched, thought out, I now need to figure out how I can have that much saved and how I need to bring in extra money to do it.
Option #1 – sell items on kijiji but since I have a small condo, I have limited number of items that would produce a small profit. Yes something is better than nothing. So I will be adding this ‘action item’ to my to-do list to find things in my condo that I can part with and see if I can sell them on kijiji.
Option #2 – getting a part time job. I would need to figure out where I would be interested in working in my off-hours from my regular day job.
- Restaurants: I have my serving licence but most serving positions are in restaurants that are open till 2am. Would I be able to commit to those hours while also having a full time day job? I have to give this option some more thought, because if I am going to give up my evenings and weekends to working more, it needs to be at a place that I don’t mind losing my weekends to.
- Retail (Clothing). Yes it would provide a discount to clothing that I could wear to work therefore reducing my clothing budget but being around all that temptation, again, I need to think about this.
- Catering: this could be an extension of restaurants however, I am registered with a catering company where they send out emails for upcoming events and I can pick and choose which events to work. They pay more per hour and are mainly on the weekends so this a more viable option for me with more flexibility.
Option #3 – Offering a service. I could offer to pet sit while my neighbors are away on holidays, draft up people’s resumes, babysit in my area. Another option is that I dabble in photography so I could potentially create some stock photography and sell that online or offer to take professional corporate headshots within my neighborhood.
Option #4 – Work extra hours. I work for an accounting firm and our busiest season is always January – April each year. This naturally comes with longer hours to meet the deadlines and allows for some overtime which will help…next year.
With the Christmas season now starting and companies are advertising for seasonal help, I will need to narrow down my options and start sending out resumes.
I think I am on a good path with with some concrete planning. Stay tuned to see what I have decided to do in order to reach my savings goal.
Have you ever had to consider bringing in extra funds for a goal you really wanted to reach? What steps did you take, what was your goal and where you able to achieve it? Was there option that I left out? If so, let me know. I’m still only planning so I’m open to your feedback