5 Tips to Save for Your First Home

 The real estate market can be a minefield. As a first-time buyer, sourcing the perfect home for you and your loved ones can be comparable to finding a needle in a haystack. But before you start shopping around for your forever home, you must ensure your finances are in order and that you are in a position to start climbing the property ladder. Whether you are eyeing up an apartment or a house, continue reading to familiarise yourself with a number of tips to save for your first home. 

  1. Find out how much your down payment is

When it comes to saving for your first home, one of your first tasks should be to research how much your down payment is likely to be ahead of time. As a first-time buyer, this will be your greatest expense throughout the entire process. As a result, it requires a great deal of planning and preparation beforehand. How much your down payment is will differ depending on several factors including the final asking price of the property you intend to purchase, which mortgage provider you opt for, and your current annual income. With a growing number of mortgage providers offering mortgages for 3% or less, you may be able to take your first step onto the property ladder sooner than you may think. The same thing goes if you are looking to build your own home. You will still need to research all of the costs associated with the job, such as land costs and labor. In this case, it would be beneficial to consult with a top home builder in PA , or one more relevant to your location, for valuable insights into all of the expenses necessary for the project so that you're able to set a budget.

  1. Cut back on a bad habit 

Whether you are aware that you spend too much money on clothes or are partial to a takeaway coffee at work, cutting back on a bad habit can have a dramatic impact on your savings in the long run. This is especially true if you are in the process of saving for your first home. It may not seem like a particularly large saving at the time, but every penny adds up. If you are feeling brave, you may even want to cease spending on non-essential items altogether. Common examples of bad habits that can be easily curtailed include buying takeaway food or drinks and online shopping. Over the course of 12 months, your savings could end up reaching the four-figure mark with minimal effort. 

  1. Consider a second job 

If you are on a part-time contract or find yourself twiddling your thumbs at the weekend, a second job could beef up your savings and allow you to put your free time to good use. For example, if you are struggling to accumulate enough savings for a down payment and are considering a DBS Home Loan, finding a second job, or even switching to a job with a higher salary, can bridge the gap between you and your forever home. To do so, browse local job boards and enquire within the local area to find out if there are any vacancies available for your individual knowledge, experience, and skillset. If you are happy at work but could benefit from a greater salary, consider asking your boss for a pay rise. 

  1. Skip a holiday 

Whether you are accustomed to yearly holidays or are desperate to jet off to a tropical destination, skipping a holiday can save you a considerable amount of money in the long run. With the average family of four spending up to $5,000 on the final cost of a holiday, this can end up contributing to a large chunk of your down payment. If you refuse to stay put, a staycation in your home country can be a great way to explore the local sights and sounds and save a little bit of cash at the same time. By opting for public transport within your country as opposed to flying overseas, you can also cut down on your carbon footprint in the process. 

  1. Automate your savings 

If you are the type of person who is unwilling to eagerly part with their cash, automating your savings can ensure you continue to save but at no inconvenience to you or your bank account. This is a great option for those prone to impulse or online shopping with your money better spent on a down payment for your first home in the not-so-distant future. If you are a couple or a family, inviting each member of your family to also automate their savings can lead to enormous savings in the long run and may even allow you to take your first step onto the property ladder much sooner than you originally thought. There are several apps available to automate your savings on your behalf. Alternatively, your bank should be able to set up a standing order so you can continue to save with little to no manual intervention. 

If you are in the process of saving for your first home, it can be impossible to know where to begin. By finding out how much your down payment is, cutting back on a bad habit, considering a second job, skipping a holiday, and automating your savings, you can take one step closer to your dream home today.

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