Buying your first house how to save for a deposit
Whether you just got married or looking for a place to settle in the future, buying your first house is a huge investment and requires a major decision. Monthly mortgage for the next five, ten, fifteen or thirty years of your life is no joke. This is why is it very important to get into the nitty gritty of things to consider when buying your first house how to save for a deposit. Here are things you need to consider:
Set a realistic goal
First, you have to set a goal and it should be a realistic one. Buy a house that is suited in your budget or you would end up paying it for a while and having it forfeited by the bank.
Determine how much you need
Determining how much money you have to raise allows you to identify the sources of income you have, the amount of money you can get from each source and the time when you have to get them. You can determine the amount you need by getting a quotation from your bank or broker.
Buying your first house how to save for a deposit in short-term investments
It is important to identify where to save or invest your money where it can grow in a short period of time. Most of these investments include regular bank savings and flexible saving accounts. Although these accounts have smaller return of investments, they can also be used to save when you are buying your first house and save for a deposit.
These types of investments include bonds, time deposits, mutual funds, etc. They have higher return but to enter one, you have to deposit a huge amount of money. Supposing you have such amount of money, it is advised to have a trusted broker or financial advisor to help you invest your money wisely.
Cut of expenses
Another thing you should consider when buying your first house how to save for a deposit is to cut expenses – especially the unnecessary ones. You have to save a certain percentage of your monthly income and toss it to your savings account. The lowest amount that you must save from your monthly income is 10% if your serious 20%.
Buying your first house how to save for a deposit – Pay your debts
If you are planning on buying your first house how to save for a deposit, you have to pay your current debts first. Remember, once you get your house for monthly mortgage, it will add up to your current debts. You will find it difficult to buy a house if you still have outstanding balance in your credit cards.
Save. Save. Save.
There is no other way to raise money but to save. Before getting those signature clothes or perfume, think first the amount you can save if you opt to second hand items. It is very important to maximize the value and use of the things you have at hand. If you can make use of those items, use them wisely and refrain from buying things you don’t need.