| So you want to buy your first property but can't figure out how to pull together the necessary cash and financing? The truth is, if you make some small adjustments to your lifestyle you'll soon be sleeping soundly – under your very own roof. Here are some tips on how to do just that:
1. Set a Goal
Ask yourself how much money you want saved up on a certain date and work towards that number. It is likely that there will be some months that you might not be able to save as much as you want, but it is good to have some kind of goal. Remember that the more money you save the more buying power you will have.
2. Cut Costs
To reach your estimated goal you will need to cut down on luxuries. Establish what is essential and what are mere comforts. Try to dine out less and keep the bills down by being more aware of how you are using electricity, telephones, cell phones etc.
3. Curb Spending
Before you even think of buying something, ask yourself if you really need it. It is hard to not be able to buy what you could afford a while ago, but keep thinking about the joy of purchasing your own home.
4. Keep Track of Your Expenses
Keep all pay slips so that you can track where you money is going. This can then be used to determine were you are overspending and were you can cut costs.
5. Reduce Existing Debts
Look at your debt history and what you currently owe. While you are saving for your first home, do not make new debt. Rather try to reduce your exciting debt by making more frequent down payments.
6. Get Legal and Financial Advice
A financial planner will be able to give you the best advice on how you can reach your goal faster. You can also call in the expertise of a real estate agent and property lawyer to help you make decisions regarding your purchase.
7. Put Money in Interest Earning Savings Account
Always ensure that you have two accounts: One for all expenses and debit orders and another for all your savings. Make sure that the savings account offers high interest so your money can grow faster.
8. Check the Market Conditions
You want to enter the market when house prices and interest rates are at their lowest. Speak to professionals about when they think the market is most beneficial for a first time buyer to start looking for property. It is great to find a bargain but always ensure that the interested rate won’t cripple you in the end.
9. Remember the Hidden Costs
When buying property there is always hidden cost. Make sure that it is included in your budget, which should be revised several times to ensure that you are not buying what you can’t afford.
10. Get Pre-Approved
Try to get pre-approved for a home loan before you start house hunting. This will save you time as you will be looking at homes in your price-range, it will help you avoid disillusionment while it will increase your bargaining power and help you close the deal faster.
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