The rent for apartments in the city increase significantly every year. Yet, you hear of families being able to buy 3-bedroom apartments for sale from developers like Pointcorp.com.au. You start to wonder, how are they able to buy when renting alone is sky-high in the current market?
The secret is making smart financial decisions. A little organisation can go a long way when it comes to money. Here are a few actionable tips you can take to accommodate a home purchase or construction:
Start With a Goal
Take the time to figure out how much buying or building a house will cost you. Include mortgage payments, maintenance costs and other fees. Once you have an idea of how much you need, you can approximate the number of years it could take for you to save up for a down payment. By doing this, you can gauge how much you need to set aside each month. This is especially helpful if you don’t have a regular source of income.
Allocate Funds Like a Homeowner
Once you own a house, 30% of your gross monthly income will go to housing expenses. While you’re still renting, you can start your housing fund by taking this percentage and putting it aside. You may feel the pinch, especially when you’re also paying monthly rent and other payables, but this will help you adjust your lifestyle and expenses to accommodate home ownership.
Exhaust All Financial Options
There are many payment plans and loans available that can ease the burden of paying for a house. These can even help you become a homeowner far earlier than you anticipate. Make sure you learn as much as you can about each option to make sure they’re the best fit for your long-term financial plans.
Saving the amount you will need takes discipline and hard work, but it will be worth it when you become a homeowner. Owning or building your own house doesn’t have to be a pipe dream. If you start today, you’ll be closer to your financial goals.