Congratulations!! you have a job, good looks, and a college degree. Buy a house? Is it possible? Yes, you can afford to buy a new home. It takes hard work, dedication, and discipline to plan your budget and finances. But then there is no denying the fact that owning a home at a younger age is a dream come true.
Planning well and making long-term investments are ways of living life with the confidence of not being dependent on anyone else for your day-to-day needs.
Here are some tips from this article that may help you out in making the dream of having your own house at a young age come true.
Benefits of Buying a Home Early in Life
Buying your own home is something many Pakistani youngsters dream about, but buying a home too early in your life can become a nightmare. There are many factors to consider such as the financial obligations that come with buying a home, the responsibility of maintaining a home, and the emotional aspect of being tied to one place.
Benefits of buying a home early in your life:
Buying a house is considered an investment. Over time, housing prices rise and you have the opportunity to earn money from selling your house.
Potential for appreciation
When you own a home, you have potential equity in it as soon as you buy it, and your equity can grow as property values increase over time. Homeownership is still one of the best ways to build wealth and achieve long-term financial security.
Equity is powerful
Building equity is powerful, especially if your home appreciates (which it will over the next 40 years). Since this is an investment that continues to grow in value, it’s likely that you’ll be able to sell it at some point for more than what you paid for it. The longer you live in your home, the more equity you’ll build up.
Tips to Buy Home Early
Start Earning Early
The key to buying a home early is saving. And the key to saving is earning.
The sooner you earn, the sooner you can save, and the sooner you start saving, the faster your stash will grow. The longer your money has to grow, the more wealth you’ll accumulate. So starting young can be a huge advantage.
Make sure you opt for a profession or business you’re interested in and familiar with. The early years of your professional life are where you need to learn and strive hard. So it’s important to invest your time and energy in something you’re interested in. This will lead to faster growth.
By taking advantage of compounding interest, you can make your money work for you and grow your savings exponentially.
By buying your first home early, you’ll be able to get a head start on building equity and paying off the down payment if you go for a home loan. This can help you save money.
Buying your first home is a major financial undertaking, and the earlier you start saving for it, the better. If you’re in your 20s and are just starting out in your career, you might feel like this is a goal that’s decades away. But by prioritizing saving in your 20s and 30s, you can be in a position to buy when you’re ready.
Be Financially Disciplined
Let’s admit it. We all want our piece of the pie! A house! Cars! Vacations! But at a young age, these big dreams can often feel like pipe dreams. But it doesn’t have to be that way!
While at first, you might not see yourself as ready to buy a car or your own home anytime soon, in reality, you could completely change your finances for the better right now with a little planning and discipline.
We all want to be financially disciplined, but in order to do so we need a good plan. If you’re not sure where to start, try these tips:
- Keep track of your spending, including your ATM withdrawals, monthly bills, and credit card statements so that you know what you’re spending extravagantly on and what kind of debt you have.
- Try setting up an emergency fund that’s at least three months’ worth of living expenses.
- Start small by saving 20% of whatever your take-home pay is—but don’t stop there: increase the percentage as quickly as possible so that those savings grow faster than your expenses do!
Aim for a Particular Budget
You probably don’t need to be told that setting a budget is important, but you should know that the process of setting particular numbers can be very helpful in terms of making sure you stick to them.
If you set your budget at 50 lac, for example, there’s always a chance that you’ll go over that number and buy a house for $52 lac or even 55 lac. The same goes for any other budget—the less wiggle room you’ve given yourself, the more likely it is that you’ll stay within those limits.
Another thing about sticking to your budget is that you should think about it realistically in respect to what you want out of your future home.
Research on Your Dream Home
Doing research on your dream home is important to make sure you know everything about it. It helps you when you need to go out and find or construct your own one. However, it’s important to keep in mind that your dream home might not be your budget—but that doesn’t mean you can’t get something very similar to it.
Start with a vision of what you’d like your new home to be, then do some research on the types of homes in your area that might fit that description. How many bedrooms? Do you want a two-story house or a one-story villa? How much space do you need?
After doing research, you’ll have a very specific goal to work for.
Don’t Just Save – Invest
Saving up to buy a home can take a lot of time and effort. For those who want to achieve this life goal as quickly as possible, you need to invest!
While it might seem like an obvious choice to just stash your money away in a standard savings account, there are other options that have the potential to generate more money over time—and therefore shorten the length of time until you’ve reached your goal.
The right approach is to invest in something that you understand well. If you don’t understand something, you won’t be able to predict its market and trends. To buy your dream home at a young age, it’s important that you start investing early in life.
Prepare for Other Expenses
Buying a home is a large investment, so you’ll need more money. To ensure you have a dream house at a young age, start preparing for other expenses. The major part of your full-time income should go towards the process of buying your home. While your other expenses should be managed by other means, which could be a side hustle or a part-time job.
Build a Strong Bank statement for Home loan Approval
Borrowers with a small deposit may struggle to secure a home loan in the current environment, but there are ways to bolster your application.
The first thing to consider is your spending habits. An easy way to avoid unnecessary spending is to set up automatic payments for regular expenses such as rent, car repayments, and utilities.
If you’re ready to buy your first home or upgrade, it’s important you start saving six months before you go looking for a loan. You will also need to start building your savings history.
While the banks aren’t likely to give you credit for one-off deposits into your savings account, they do pay attention if you can show consistent deposits over a period of time.
Bonus tip: Use a Real Estate Investment Consultation Service
Realtors or real estate investment consultants can help you buy a home at any age. They bring special expertise to the table when it comes to younger buyers. As Realtors, their goal is always to get you into the right home at the best possible price.
At UNF Marketing, we can help you evaluate your financial situation and goals to figure out how much you need for a home.
We have expertise that lets us do a detailed analysis of your finances so we can determine how much house you can comfortably afford. This is particularly important for first-time home buyers, who may not realize how many factors are involved in successfully securing a loan.
You can contact us at UNF Marketing for expert real estate investment advice. We have been helping many youngsters like you to make their dream of owning a home or real estate a reality.
Your journey will be unique, and your situation will be different, but these tips can hopefully help you get started in the right direction. As always, feel free to share your own insights and opinions on the matter with us in the comments below.