Buying a house is perhaps one of the biggest dreams that every working adult has in life. This is the marking of our essential requirement, which can be attributed to Maslow’s hierarchy of needs. Also, when it boils down to practicality, having a house of your own will also serve as a secure plan for investing your hard-earned money. One of the most lucrative and safe ways to maximize your wealth is by using it on real estate.
It may seem like an age-old concept that people prefer to buy their properties early in life, but it is useful in several aspects. If you’re just at the beginning of your career and have a dream of owning your house as soon as possible, it’s a good time to start early. To understand how to create a game plan that will help you buy property as a youngster, this article will provide all the help that you need to get started!
Without any stalling, let’s get your investment plans in the right place right away!
Why should you start planning early?
There are several advantages of getting your finances in order early in life so that you can afford your dream house. For starters, the mortgage you pay is spread out over a longer term, reducing the financial burden as you progress in life.
If you had to buy a house in your late 40s as opposed to your early 30s, the downpayment, loan installments, and interest rates all would differ by a huge margin. Secondly, you can let out this property in the initial years to reap a rental mortgage, which also adds to the valuation appreciation of real estate.
It is hence advised that you use the help of thelindleyteam.com in order to create the most appropriate mortgage plan for the property to receive high returns. When you have a property to call your home early in life, you have a huge burden lifted off your shoulders before retiring because the loan would be completely paid.
Ten tips to secure your dream home in the early stages of life
1. Create an early financial discipline to afford your downpayment
The first place to start with your financial planning is to create a fund to save for the downpayment of the property you wish to buy. All the properties have a certain percentage of downpayment required to be paid so that the balance can be covered with a loan.
However, the secret to receiving an attractive offer in home loans is to afford a substantial downpayment. If you haven’t done this already, set aside a fixed amount every month in a high-return investment that can become your downpayment when the time comes.
2. Create a budget and stick to it
Having age on your side and a decent salary can make us forget that saving is important. Learning from the business moguls and other famous personalities, a key aspect of living well later in life also comes with having a frugal lifestyle initially.
No matter high your salary is, use only the amount that you need to live a healthy and secure lifestyle. Save and invest the rest to give you great returns and diversify your portfolio. Living on a budget will also create the discipline you need to attain financial independence.
3. Research deals on your dream property
If you could buy your ideal property today, what would it look like? It’s important to know what it is you exactly you’re looking for in a dream house.
It also serves as a great reminder that your life may add members in the future and hence having enough room and specs like a gated community, security and other facilities top the list. Research your home choices and create a clear picture so that your decision-making is simplified.
4. Talk to realtors for a better idea of property purchase planning
If you’re looking for professionals who can give you the perfect home investment advice, you need to speak with realtors. Since they understand every profile of a buyer, they’ll be able to introduce you to plans and strategies that can help you secure a great property that checks all your boxes while making great investment decisions.
5. Invest as a means to save
Investing in stocks and volatile markets is a great way to diversify your investments. However, with market risks, you also need to create secured fundings that can be accessed easily.
Create a strategy to invest in high liquidity assets so that you do not struggle with home downpayment at a minute’s notice. Popular properties run out quickly and need you to act quickly. Don’t let a good home go because of a shortage in liquid assets.
6. Set aside money for a few EMIs in the future
Once you buy a home, you will also need to think about the payments of regular EMIs. Preparing for contingencies and sudden expenses requires an emergency fund, but you also need to set aside some money for at lear three months’ worth EMIs. The security of knowing that your home loan is covered even in the face of a financial crisis is unparalleled.
7. Work on your credit score
Last but not least, your credit score is the gateway to several privileges as a citizen. It can also give you several tax benefits, loan waivers, or a lowered interest rate if your credit score is high enough. Additionally, you can easily secure loans from reputed organizations to purchase a new property without much of a hassle. Look for ways to keep your credit score high and practice them.
It may seem like a faraway dream to buy your own house someday, but we’re at an advantageous part of the timeline by having age on our side. If you use these tips and carefully plan your finances, you will be able to get your dream home early in your career and perhaps buy a few more! We hope that this blog helps you understand your financial standing to make the right decisions.
- About the Author
Alex Grigoryan is a Professional Home Improvement and Lifestyle Writer. He has been in the industry for over 6 years and has been writing for Chique Home Living since 2019. His work has been featured in prestigious blogs such as Spruce Home, Better Homes & Garden, and more.