Money-Saving Tips to Buy Your First Home
Real estate is always a good investment. Financial experts agree that this particular asset is stable and reasonable -- with a solid portfolio at least having one real estate option in its roster. Despite the potential income real estate can make, it is still a daunting prospect to consider. How does one start? Where does a person begin?
The most important consideration is, of course, saving enough money to pay for the property. Real estate companies, such as Ayala Land offer practical advice on how to save money to buy one’s first condo. Consider the following:
Create a monthly budget:
The first step is usually the most obvious one. That being said, many people still forget the importance of designing and following a monthly budget. Financial goals should always begin and end with this. It is important to be honest and realistic about one’s spending habits and then create an appropriate budget to follow. In terms of saving up for that first condo, a good place to start is to speak with an accredited broker to assess how much one needs to have. For example, a house and lot for sale in Nuvali like Avida Southfield Settings, would have a different cost from say, a condo for sale in Makati like Avida Towers Asten or a West Gallery Place condo unit in BGC. Never be frightened by the initial figure; regardless of the cost, the amount will act as a goal in which to design a plan around.
Where most people fail in saving money for their first home is not taking it seriously. When they see a lot of zeros in their bank account, they immediately assume that they are on track, or worse, that they have some room to move around in. There is so much temptation to spend or use some funds to “treat one’s self”. This should be stopped at once. An excellent way to prevent this is to create a dedicated bank account just for the housing fund. This account should never be used and quarantined. Take note that one should still have their regular checking and savings account to pay for day-to-day expenses.
Make savings automatic:
Now that one has a dedicated account, saving into it should be automatic. This can be seen as a hassle, as one may have to deposit the money in a bank proper. However, the goal should always be thought of. Take note that while it can be difficult now, the potential income a condo for rent in BGC may have is worth the initial aggravation. Even if the condo is not going to be used for income-generating purposes, owning a condo is still a worthwhile endeavor.
Save 100% of bonuses:
Bonuses are a great source of surprise income -- but that’s exactly what they should be, a surprise. People should never rely on them for their everyday expenses and definitely not for a housing fund. Nevertheless, if one receives a nice cash-back or end-of-the-year bonus, these should be used to augment one’s savings account. This does require a lot of restraint but think about it this way: if one has already built a good budget, then the extra cash is not needed, so it’s perfect for saving.
The most important tip to remember is that saving should never feel like a punishment. The math of saving for a house is pretty straightforward, but it often gets skewed by emotions. It can occasionally feel frustrating or painful, but it does ease over time. Ayala Land has always carried itself on the pillar of sustainability, and that includes living correctly. It would never do to deprive one’s self of things just for a goal. The idea here is to save money, not to spend absolutely nothing.