7 Money Saving Tips for First Time Home Buyers
The moment you decide to invest in a real estate property, saving is one thing that comes to it. Purchasing a home will probably be one of the biggest investments you can ever make in life. For first time homebuyers, it is a huge achievement. But that does not come with a fair share of headaches. Real estate investment does not just end up with finding the property of your choice. There are still a lot of things to consider – saving money is not an exception.
If you are planning to invest in a real estate property in the Philippines such as Arca South Taguig, make sure you can afford it. But admittedly, saving and budgeting can be challenging. Fret not! There are tricks you can follow to achieve a desirable outcome.
1. Consider all expenses
The number one rule when saving is to determine all of your daily expenses. From food, groceries, clothes, gadgets, fare or gas, utility bills and other things you considered as your expense. With this point, you can start identifying which of those expenses you can live without and scrap it out! You have to start saving right away. If you think that you do not need to spend too much on a particular thing, then do not waste your money for that. Be a smart homebuyer.
Moreover, listing down all of your expenses will help you track down on where your money went. Considering all of your expensive will also help you budget your money.
2. Location: Don’t buy a house for the view
Although having a good view is a plus factor, do not purchase a property mainly for that reason. Because eventually, there will be new developments that will restrict their view of the surroundings. Unless you own the land between your home and the view, then the view will be useless since it can change overnight. Look at the bigger picture and not just with your current situation.
3. Don’t be house poor
First-time home buyers should know that there is a rule of the thumb when investing in a real estate. Never invest in a property that is 30% beyond your monthly income. When you do, then this will eventually lead you to financial problems later on. Yes, property hunting can be overwhelming. But you do not just consider the appearance of the property, but its price as well. With this, you will know whether you can afford to invest or not.
4. Pay for home inspections
Before you decide to move into your new home, make sure that there are no damages inside and outside of your house. Make sure there will be no problem on the plumbing aspects, electricity, water, wall cracks, and other things that can be potential risks to our lives. However, if you are not sure about it, then consider hiring a home inspector to make sure your home will be in good condition. This is to ensure that there will be no costly repairs in the future.
5. Shop for your mortgage
There is more to real estate investment that merely house hunting. If you are planning to purchase a property, you have to research your financing options with multiple lenders. This is the best way to get the lowest interest rates. Moreover, consulting with a mortgage broker for processing the transaction would be advisable.
6. Bundle insurance
There’s nothing more satisfying than living a secured life. When you decide to purchase a property, never forget to have it insured. This will protect you financially from any accidents such as fire, burglar and other potential risks that can prevent us from living a peaceful life at home. Aside from the financial assistance, insurances are also willing to help and guide you on the things that are best for you to do.
7. Know your market inside and out
Just because the property is appealing, that does not mean it is the right property for you. If you are planning to buy a property, you need to make sure that you know what other homes are listed on the market. With this, you will be able to compare prices from different real estate properties. Moreover, this will make you informed in the negotiation process and keep your agent honest when working all throughout the investment.
Although there are times that saving money in real estate can be a little bit tricky, you can definitely play it out. You do not need to be stiff about it and just know how the real estate works. With this, you will be able to survive within the duration of the transaction. Just know what and what not to do when saving, then you will learn how to maximize your budget.