Recently I was fortunate enough to travel to the small island country of Iceland in the middle of the North Atlantic. It had not been a destination on my radar until I started to plan a mountain biking trip for my milestone 40th birthday.
I knew I was going to utilize the locally owned (Whistler based) Big Mountain Bike Adventures, an award-winning global mountain bike adventure company. So I started following their Instagram feed @bigmtnglobal. I had shortlisted four of their trips, but one particular image from their Iceland trip clinched my decision, so I booked my spot and there was no turning back!
As an avid and passionate mountain biker, I was extremely excited about placing my bike tires on foreign ground.
As my departure drew closer, I became increasingly anxious about traveling on my own. I had traveled internationally many times, but never solo. It was something that I had always done with my wife, and I usually just followed. I figured out how to harness the anxiousness and bottle it,; put a label on it called EXCITEMENT… the fine 2016 vintage! I tried to focus on the journey and not the destination. I embraced the adventure!
What I came to realize was how much I still love to explore. I grew up roaming the forest around our home, which later developed into a love outdoor excursions and guiding. In my late twenties and early thirties I was fortunate enough to experience the guiding lifestyle.
As soon as I landed in Iceland to start the bike adventure I realized then and there that I want to continue exploring. This would be the first of many trips with friends and family.
You’re probably asking yourself, what does this all mean? Why is this Dominion Lending Centres Mortgage Broker talking about adventure travel within a mortgage and financing platform? It’s very simple. As the title says, LIVE YOUR LIFE.
Buying your first or second (or even third) home isn’t all about buying the biggest or the best. One’s lifestyle and long-term goals, plus needs and wants, should be the only things to consider, never mind how that new home will look on Facebook. My office is located in an area with an average household gross income of $95,000. Here is an example of that household’s maximum real estate purchase price.
Purchase Price: $600,000
Down Payment: $35,000
Mortgage Amount: $565,000
Mortgage Insurance: $20,340
Total Loan: $585,340
Monthly Mtg Payment: $2,620
Est. Monthly Strata: $300
Est. Monthly Property Tax: $209 ($2,500/year)
TOTAL Monthly Payment: $3,129
Property Transfer Tax: $10,000
Home Inspection: $400 (estimate)
Title Insurance: $250 (estimate)
Approx lawyer fees: $1,500 (estimate)
Can your household really afford this? Yes, this is what the federal lending guidelines allow you to extend yourself to, but do you want to live at the limit? Bear in mind that this doesn’t consider any travel, entertainment, social nights out, re-occurring monthly expenses or adding to one’s savings.
Buy within your means and don’t try to keep up with the Joneses. I have made a conscious decision to live within my means and save for the big trip as well as purchases.
What are your big goals, besides owning a home? Build them in to your purchase decision. Do an internal audit. Does the $3,129 home payment match your personal budget? Does it fit into your ultimately LIFE plan?
Courtesy of Michael Hallett, AMP – DLC Producers West