Buying Your Own Home: Is It Realistically Achievable?
If you’re someone that has always wanted to be able to buy their own property, then you’re not the only one. However, it’s definitely not something that seems all that realistic these days. Decades before, banks were handing out mortgages with no problems at all. You’d even be able to get 100% mortgages so that you could literally buy your house with no money. And while that definitely still doesn’t exist in the same kind of manner today, it’s probably that kind of thing that has made the housing market so hard to crack into today. Right now, the average age of home buyers is only going up. It’s currently around the age of 32. So if you’re under this age and you’re yet to buy your first property, don’t panic. It’s only natural that you’re going to take a little longer to get your money together and make that purchase. After all, we’re all living longer, so the steps we take also take longer too.
But regardless of the stats, does that mean you have to give up all hope of ever buying your own home? No – of course not. In fact, if you really want to be able to buy a property, then you can. You just have to be sure that you really analyze your lifestyle and work out how you’re going to make this happen. And, to do that, you’re going to have to approach things from a range of different angles. Because yes, being able to buy your home is a realistic goal – but only if you’re being realistic about it and actually working to make it happen. It may be hard and it may be stressful, but you’ll make it work. So let’s take a look at some of the things you can do to make that happen.
- Getting To Grips With Your Finances
So the first thing you really need to make sure that you’re doing, is really figuring out your finances. If you’re not someone that has always been good with money, now is the time to change that. Yes, getting a mortgage can be hard – but it doesn’t have to be impossible. In fact, it can be incredibly simple if you just start to be really aware of your finances, and you start to get smart about them. So sit down and work out what you have and what you make. This is always the best way to begin your plan.
- Paying Down Debt
So next, if you have any kind of debt, it’s time to work on that. You’re going to want to make sure that you’re really working to reduce what you owe. If you want to be able to buy a property, you can’t have debt hanging over you. So instead, think about paying it off as soon as possible. Consider using the snowballing method and even side-hustling so that you can generate the money you need to get rid of it altogether.
- Cutting Your Expenses
At the same time of paying off your debt and starting to get your financial life in order, you’ll want to think about reducing your expenses too. Everybody can cut down on what they spend. So why not make sure that you’re doing this right now – today. Go through everything that you pay out. Start to track what you’re spending and look to cut it down. Do what you can to really make sure that your expenses are at a minimum, then you’ll be in a better position to start saving.
- Starting To Save Money
From here, you’re then going to want to start saving money. If you’re already reducing your expenses, you can then be smart with the rest of what you pay out. Spend less at the supermarket and switch out your utility plans for better rates. This sounds extreme, but it can free up the cash you need for your deposit.
- Creating A Savings Plan
Your next step is to think about how you’re going to start putting that money aside for your deposit. Now that you know what you make and how much you spend, there should be a gap. And that gap is what you can plough into savings. First of all, you need to know what you need, without something like the housing loan calculator from PropertyGuru to help you. So sit down and come up with a savings plan that is not only realistic, but that will allow you to know how long it will take to get the money together.
- Living A Suitable Lifestyle
Next, you really need to make sure that you live within your means – even if this wasn’t a problem before. It’s not more important than ever. So reduce the cost of your car, think about renting a cheaper place, and just make sure that your current standing of living won’t stop you from buying.
- Looking For Options
It’s also a great idea to start looking for options. Finding your dream property can be tough. So start to think about what’s available right now, and what you can afford. Or on the flipside, how much you need for the kind of property that you want.
- Working On Your Credit
Next, it’s also a smart idea to improve your credit score. When it comes to getting a mortgage, your credit history is so important. Even if it’s been less than perfect in the past, you’ll be able to really change things by making sure that you are paying your bills on time and reducing your debt. This can often affect your chances of getting a mortgage and the rate you can be offered.
- Planning Financially
From here, you really need to make sure that you know what to expect. Think about how you’re going to be able to pay for the mortgage, and what the cost of buying a house really involves. From the amount you’ll be expected to pay back each month, to the length of the mortgage, and also fees, just make sure that you have factored everything in.
- Earning More
You may also want to consider ways to increase your income. Whether you want to go for a promotion at work, or you want to be able to start your own thing on the side to generate more money, make it happen. This could be the ticket to building up your deposit faster.
- Taking The First Steps
Then, from here, all that’s left is to start working through the mortgage loan process. While each of the above ten steps could have taken you a few months or even a few years to work through, this is the light at the end of the tunnel. So if it’s going to motivate you, make sure that you’re thinking about what steps you need to be taking in order to get the mortgage. This can help you to really keep in mind that end goal. And then as your financial situation is in order and you’re ready to buy, you can submit your application!
So there you have it. This is exactly how you’re going to be able to get what you want done, and work to get to where you need to be. Buying a house does seem impossible when you’re struggling to pay the bills and living paycheck to paycheck. But it doesn’t have to be. If it’s something that you really want to achieve, you will be able to. You just have to keep your eyes on the prize and really work for it. So get yourself exciting about owning your own home and start to work for it!
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