Tips for saving for a home purchase
Tips for saving for a home purchase. Let 2021 start on the right foot! We want to share with you the best tips for saving for a home purchase and allow you to fulfill your dream of home ownership and building wealth. A home you will fill with wonderful memories.
It is very normal to feel a bit of frustration and confusion about the real estate purchase process, and at Budget Build Buy we are ready to accompany you in each phase of the process. But the first step, before moving into the property of your dreams, is to save and this is a habit you have to build. However, for most of the population this is not really easy to achieve.
Tips for saving for a home purchase
We believe that to fulfill any dream it is important that you are 100% sure that this is what you want for your life. Furthermore, you need to live it, feel it imagine it and feel it deep in your soul.
And we know that it can be very aspirational, but the truth is that this is the only way to mentally program yourself to respect your priorities and keep you focused on each of your goals.
If you imagine it you can achieve it
Take a deep breath, close your eyes and imagine yourself in your own home, in that spectacular apartment, or buying the lot you always wanted to build the house of your dreams.
Do you feel how your stomach and heart are flooded with feelings and out of nowhere your face reflects a smile? If so, you are on your way.
Now is the time you should start organizing your priorities. For this we advise you to start by making a list like the following:
- Monthly expenses
- Weekly expenses
- Activities and fun
- Total cost of the property you dream of owning
Open a spreadsheet and begin detailing each of your financial responsibilities, and don’t forget to assign an amount to reward your hard work. Then start checking which ones are really necessary, eliminate wasteful expenses like having multiple streaming platforms, or paying for an expensive data plan when you work from home and use WiFi all day.
All of the expenses that you eliminate will help your cash flow. Which will allow you to save monthly towards your down payment on your first home or apartment.
Stick to your budget
Convince yourself of your new decision and be very realistic with your budget. It is good that you try a little more, but the truth is that you do not want the process of buying an apartment to become an impossible mission. You still have to live and enjoy some of your life.
Set a clear goal
With your budget defined and expenses organized, it is time to define the amount that you will be able to pay as a down payment, taking into account the following:
- Generally the amount of a down payment is equivalent to 3-20% of the total value of the property.
- You can look for a property that you like and that meets your needs, and based on its price, establish the value of the initial down payment that you should save.
- Another option is to add the amount that you could save month by month for a certain time, and taking into account additional income such as bonuses, establish the amount you can offer as a down payment.
- Pay yourself first
Experts recommend that saving be established as the highest priority, in this way there will be no excuses such as “I didn’t reach it” or “I forgot.”
Tips for saving for a home purchase
You can set up an automatic debit to a different personal account, reserved solely and exclusively to your home savings goal.
There will be times when you feel that you will not be able to pay your other responsibilities, but you will probably end up subtracting a little from your entertainment expenses, which will allow you to keep up with your obligations, keep saving, and at the same time stay focused on your final goal.
Create new habits
The success of saving does not lie in living in austerity, it is in continuing to indulge yourself but with better habits, such as:
- Eat delicious food, but cook at home
- Take a trip, but stay locally, in the city or visit a nearby town
- Dress well, but pay reasonable prices
These types of changes will allow you to build healthy savings and make the process of buying a house or apartment much easier. This is undoubtedly one of the best options to buy a home.
You will find projects where the down payment is paid when you close, or for new projects between 12-24 months. And just like in personal savings, you can create a payment plan that suits your needs.
