3 Opportunity Costs of Buying a Griffintown Condo for Young Professionals
If you’re a young professional just setting out on your own, you may be excited at the prospect of buying your first condo. But going from renting (or living at your parents’ home) to owning can mean an increase in your cost of living. This may leave you experiencing a real feeling of FOMO—Fear of Missing Out—whenever you begin thinking about things you’re missing out on due to budget constraints.
It’s important to ensure that you’re ready to take on the benefits and costs of homeownership before you sign any closing documents.
Here are 3 opportunity costs that may come with buying a Griffintown condo, as well as some of the factors you’ll want to consider when deciding whether this is the right condo purchasing time for you.
1) Avoiding the Risks of Entrepreneurship
When missing a monthly housing payment can mean foreclosure instead of eviction, you may feel constrained when it comes to setting out on your own in the working world. If you’ve hoped to start your own business in the upcoming years, having a mandated monthly housing payment can mean added stress and may even be enough to put off your self-started business entirely.
Buying a Griffintown condo doesn’t mean giving up your business dreams, however; if you’re serious about setting out on your own, you may want to gradually work your way up by starting your entrepreneurship as a side business.
2) Forgoing Weddings and Expensive Vacations
With the average cost of a Canadian wedding exceeding $30,000 these days, making a down payment on your condo could mean putting off that wedding indefinitely. And if you’re used to taking an overseas (or at least a tropical) vacation every year or two, you may need to start planning staycations or local road trips in lieu of your former jet-setting adventures. Taking on a mortgage and the other costs associated with homeownership can mean having far less money to spend on travel, concert tickets, and other experiences.
3) Dining Out and “The Latte Factor”
When you’ve begun working a good job and still have relatively few fixed expenses, it can be easy to begin ratcheting up your lifestyle choices to include daily lattes and weekly sit-down dinners with friends. After you buy a Griffintown condo, you may have less disposable income to spend on takeout when you can cook at home for a lower price, even though you may still live within walking distance of a number of great local restaurants and bars.
Although these factors may seem discouraging at first, many Griffintown homeowners find that they enjoy the advantages of homeownership—from building equity to insulating themselves from future rent increases—enough to make any opportunity costs well worth it in the long run. As long as you go into this decision with your eyes wide open, and with a well-planned budget, you’re likely to be satisfied and happy with your condominium purchase.