Congratulations on entering the practical phase of your life, where you are considering purchasing a house. It is a security blanket for your family. However, some may purchase a house in the form of an investment. Here are a few tips to actualise the objective.
Five years is a realistic timeline for a long-term investment such as a house. You will easily purchase the first house if you have a stable income and follow the budget. At the same time, if you save aggressively, you can shrink the timeline too.
A savings pillow to fall on is always a good idea. Unfortunately, many people do not think of it. The future is not linear. In a five-year plan, the downfall is imminent such as a medical scare, the car breaking down, or unemployment.
An emergency fund will prevent the individual from utilising mortgage savings for emergencies. The funds remain separate to purchase a house in five years.
You may be tired of hearing the word, but budgeting is essential for buying properties. The accounting concept involves expenses and income. It will help you analyse savings successfully. Therefore, the accuracy of a budget is paramount to follow the timeline.
The buyer is encouraged to browse the market to discover their desired house. After picking the property, calculate ten or 20 per cent based on the market amount. This is the resultant amount you need at the end of 5 years. You can divide the percentage amount by 60, which you will transfer to the house-savings account.
If you lose motivation throughout the five years, remind yourself of the bigger picture. Consider the amount you will save on rent or commuting to/from work. If an emergency surfaces, you can utilise the fund created in step 1. Continuously contribute to savings and prioritise your future over the present.
TRPE is a team of property experts that will budget your expenses and income so you can purchase a house soon. If changes happen or the future changes drastically, TRPE will adjust the planning accordingly. Visit our physical office to learn more about our operations. You can also schedule a meeting with TRPE online.
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