If you think that students can’t make good investments, Martin from Studenomics, is here to set the record straight. Martin doesn’t believe that students have to be broke. No Ramen noodles and five roommates in a three bedroom apartment for Martin. His college experience was very different – he actually bought his first home as a college student. Martin tells us all about it in his blog. Studenomics is a personal finance blog for 20-somethings that preaches the fact that anyone can afford to have the lifestyle they want with a little bit of planning, some motivation, and a really good budgeting calculator.
Who says college students can’t invest?!
Very often college students can’t even afford tuition, let alone additional personal expenses such as investing during their college years – and sometimes afterwards. Martin says this doesn’t have to be the case. 20-somethings can afford to invest in themselves during their college years and everyone should be planning for their future. “I was 20 years old and I wanted to make a huge investment,” says Martin about why he decided to buy a home while in college. “I was ready to take on the risk and see what it was like to have my first rental property.”
Martin saved for his own down payment by “working like a mad man.” He lived on a very strict budget (some may say extreme) and applied for financial assistance. Martin admits that his goal to buy a home did come at a price, “I missed the whole college experience because I lived with my parents and commuted to school (in order to save money on housing costs).”
How does a college student buy a condo?
As a 20 year old single college student, Martin knew he didn’t need a lot of space. He admits he didn’t have time to spend fixing up a house, and he was almost certain that he wouldn’t be approved for a large mortgage loan from the bank. He needed to keep his costs down if he wanted to buy his first home so he decided to buy a condo.
“I purchased a condo in a developing area. It was more out of necessity than anything else, to be honest.” says Martin about his decision to look at the costs over convenience when choosing where to buy his first home.
Two things everyone needs to know about buying a condo
Martin has since sold his condo. He enjoyed owning a home because it was a place where he could just shut the door and be quiet, but his homeowner experience wasn’t without surprises. The biggest shock was how much buying a condo really costs and Martin admits he wasn’t ready for it. “All of the fees! They never stopped. You have to pay lawyers, real estate agents, and the government.”
If Martin could give one piece of advice for all potential condo owners everywhere, it would be, “Always buy a parking spot! This will pay off. Trust me.”
If you are planning to buy your first home, join SaveUp and be rewarded every time you pay down your mortgage.