How to save money to buy a house
We are in times of change. Without a doubt, 2020 will mark a before and after in our lives. The Covid-19 pandemic brought a lot of challenges in all areas: cultures, economic and social.
Economically, and particularly in the world of real estate, investments are mutating in a very particular way. And this means that we are faced with new investment opportunities.
Buying a property has always been a suitable savings mechanism. And this happens all over the world. With the pandemic among us, this savings system is now benefiting from an exceptional opportunity: the possibility of acquiring properties at a price much lower than the market price. Why does this happen? Many people or companies have had to sell their properties to meet the expenses and payments. Undoubtedly, this has generated an oversupply of properties and the appearance of an opportunity for many.
Buying a property requires a primary starting point: having money saved. In general terms, and as stated by many specialists, the component for the purchase of a property is composed as follows:
- The total budget of the property value.
- The percentage of the price that the bank does not finance and between 10% and 15% is destined as expenses of the operation.
It is imperative to highlight that if you are thinking of acquiring a house, an apartment, or a property, you must act realistically, prioritizing everything needed to start the operation.
- For now, the first step is to get rid of those outstanding debts: this includes loans with the bank and payments on credit cards.
- Must be anticipated more significant source of income. This forecast is significant when conducting a future financial analysis. It is also important to cut unnecessary expenses.
- Order gastronomic consumption: when you need to save, putting aside restaurant meals or ordering delivery is an excellent way to save. Undoubtedly, all this will determine a good time to start cooking more at home, leaving less than usual.
- It is good to have some money previously saved, even if it seems redundant. Also, adjust in terms of service expenses: electricity consumption, gas consumption, satellite television, among others.
- Remove non-priority subscriptions: This includes magazines, phone apps, satellite TV, and similar.
- Organize a particular bank account for operations that involve the purchase of construction material and all those elements necessary in our real estate investment. Either if we are building from scratch or if we will need to make spare parts.
- If you apply for a mortgage, it is essential not to have outstanding loans or do not have debts. Banks always consider this issue before lending money.
- Experts suggest that you must save at least 20% of your monthly income. Logically, it is intended that the monthly payment corresponds to all members of a family, especially the father and mother in the case of a marriage.
For now, these are the main aspects to consider saving money before buying a house. In the meantime, knows that today the real estate market offers a lot of possibilities. If you are among those who did not suffer economically and significantly during the pandemic, you are undoubtedly facing a scenario of good investment opportunities.