Buying that all-important first home? We know how hard it can be to save for a home. That’s why in today’s contributed post, we cover 4 best tips first time home buyers need to know. Enjoy!
******
In today’s day and age, a lot of people assume that they are never going to be able to afford a property. While it is true that it is more difficult to get on the property ladder today, it is not impossible.
You simply need to have a careful and considered approach to saving, and you need to work out all of the money that you are going to need to accumulate so that you do not experience any hurdles down the line.
With that in mind, read on to discover everything you need to know about saving for your first property.
Work out exactly how much money you are going to need
The first thing you should always do is work out how much money you are going to need to save. This is where a lot of first-time buyers go wrong because they only concentrate on being able to accumulate the deposit that is required to purchase the property.
However, you are going to face a lot of other costs. This includes estate agent fees and legal expenses, as well as the cost of home insurance and getting the much-needed property inspection. You need to make sure you account for each and every cost that could come your way, and add a little bit on top of this so that you have a cushion.
You the need to have an emergency fund too. After all, once you are a homeowner you are going to be responsible for all maintenance and repairs, so it is vital to have a cash reserve so you can deal with anything that goes wrong.
You can find some great advice on building an emergency fund here: https://www.forbes.com/sites/nextavenue/2017/08/29/10-ways-to-build-an-emergency-fund/. Once you have got a figure together regarding the money you need, this may be off putting and you may feel like you have a mountain to climb.
However, it is always better to err on the side of caution and have too much money than not enough. After all, you do not want to run out of money half way through completion.
Related: How To Make Finance Your New Hobby
Put together a budget
Once you know how much money you are going to need, you then need to look at your own finances and get them into check. A simple budget is a must. Read our budget tips here: https://www.runthemoney.com/budget-tips/.
This does not need to be complicated. It merely needs to give you an overview of your incomings and outgoings every month so you can see how much you can put into your savings. The good thing about this as well is that you will be able to see how long it should take you to save the money you need, and this can help you to stay motivated because you can see the finishing line.
When working out your budget, assess your current expenses to see if there are any savings that can be made. Do you really need all of the subscriptions and TV services you are signed up to? You should also call your utility providers to see if you can go onto a cheaper tariff.
You will be surprised by the amazing deals you get offered once a company gets wind that you are thinking about leaving, so do not hesitate to give all of your suppliers a call so you can explore your options further.
Find out whether you are entitled to any government help
As you are a first-time buyer, there is a high chance that you may be entitled to some government assistance. Of course, this all depends on where you are from and where you are buying a property. It can also depend on whether you are going for a new build or an old property, and other factors like this.
You can see more information about this here: https://www.rumah.com/panduan-dan-referensi/membeli-rumah/berburu-rumah-murah-vs-berburu-rumah-subsidi-pemerintah. Either way, you should do some research and explore your options, as there are many schemes and help-to-buy programs that are available.
The last thing you want to do is miss out on monetary assistance simply because you did not realise you were entitled to it.
Look for second income streams
The last thing you need to do is look for some extra ways to make more cash so you can add more to your savings every month. You can find some ideas here: https://www.savethestudent.org/make-money/10-quick-cash-injections.html.
Today, there are so many different ways you can make money from the comfort of your own home. You do not have to go out and have a second job. Why not look for freelancing gigs on the Internet? If you have skills in areas like writing, admin, website design, and graphic design, you should have no trouble picking up some side jobs on the Internet.
Other ways to make some extra money include selling your belongings, taking paid surveys, and renting out your driveway. The latter is an ideal way to make some extra cash if you live in a popular area. All you need to do is leave your driveway free, as the transaction can take place over the Internet beforehand.
Hopefully, you now feel more prepared for saving for your first home. While there is no denying that this is going to take a lot of effort and dedication on your part, it will certainly all be worth it in the end. You should always begin by putting together an effective budget.
It is always better to overestimate than underestimate so you do not run into any problems latter down the line. After this, you can then work on different strategies to accumulate the money you need to buy your first home. Good luck!
Leave a Reply