Ever since the housing prices started to climb and the interest rates started to fall, people have been scrambling all over the country to snatch the best property deals. However, experts have mentioned that this housing boom is about to come to an end. So many people who have been waiting patiently and others who have never thought about buying property are starting to feel the tingle to start saving for it. If you’re actually thinking about going through it, you will need a lot of money to get you started but don’t worry. We have a few pointers on how to save money to buy your first dream home.
How to save money for a new home
Before you even start saving up for a new property, you need to understand what you’re getting into. Buying a house is not as simple and easy as you may think. You may think it’s finding the right house, look at the price, put in a deposit and get a loan from the bank. It involves all of that but it also involves other added costs. So before you start to save money, you must also think about the extra costs like stamp duty, building inspections, pest control, loan fees and strata inspections.
And if you want to borrow more than 80 percent of the property value, you’ll have to pay Lenders Mortgage Insurance and that can also add up to the total. You need to calculate all deposit and extra costs surrounding the entire process of buying property before you even start saving up.
Buying your dream house is never a quick and easy process. You may find the house of your dreams, save up as much as you can but still come short. And additionally, there may be some things in the house or in the back yard you’d have to fix up to meet your needs.
Whatever you do, which ever type of property you wish to buy, starting early is always the first step to your dream home. Save money early on, as early as possible, for any big purchases. You can probably put aside some money from you salary after every pay day and keep it in a savings account or an investment fund.
Years before, our parents and grandparents could just save their money in the bank and have enough to put in a deposit and pay off the home loan quickly and still have money to spend. These days, it’s next to impossible. You need to shop around for a decent home loan and still save as much money as you possibly can while having enough for your basic needs.
The best you can do is be disciplined about your saving habits. You don’t want to impulse buy anything you want but don’t actually need. You don’t want to go into any debt before you start saving for a house. Basically you need to mentally train yourself to save money and motivate yourself that all your effort is going into your new dream home. And it is going to be a fantastic home.