How to Save for your New Home

How to Save for Your New Home

Lydia Lohshini by Lydia Lohshini on Nov 2, 2016
Why you should care

If you’re a millennial and you’re wondering how in the world you’re going to afford your own home, then this is for you.

Property in metropolitan areas are skyrocketing and new homeowners are being squeezed out of the race. TLDR: homes are expensive and we have no money.

Between paying off student loans and establishing careers, saving up for a home can be challenging. Even if you’re not intending to be a homeowner in the too near future, here’s what you can do to prepare for one of the largest purchases you will ever make.

1 Accommodation

If you’re currently living with your parents then great. It may cramp your style but it will save you some big bucks. not having to pay utility bills on a monthly basis will helps you save more and spend less on your living expenses.

moving back homeIf you’re living away from family, then we suggest you take on roommates. This may be tricky as roommates can be major pain in the butt. Having said that, being able to split rent and utilities will save you a lot of money. So maybe tolerate them until you’re stable enough to escape?

2 Save Your Raise

Many organisations offer pay reviews on a yearly basis so every time you get a raise, we suggest you put that sum aside. Don’t think of it as extra money to splurge. Instead consider the “make more, save more” motto.

We see no reason to put the money aside as you’ve grown accustomed to living within your means with your previous salary, no?

3 Keep Tax Refunds

Maximise your rebates on things like book and gadget purchases, insurance fees, and donations to increase your chances of a tax refund.

It may seem like a good idea to use your  refund to treat yourself (for successfully filing your income tax) but imagine how much happier you would be to be a step closer your very own space.

4 Ditch the Satellite TV Subscription

Honestly, how many of us actually watch Astro anymore? We rely on the internet so much that we may as well substitute Astro for Netflix or Iflix. We’d rather binge watch then have to wait another week to see the next episode right?

online media platforms

Substituting satellite TV for a streaming service will save you quite the sum in the long run and you don’t even need to purchase a television to stream your favourite TV shows!

5 Stop Spending on Décor for your Temporary Home

Think of it this way, why would you spend on a home you will be moving out of anyway? If you’ve convinced yourself that you can spend that certain amount on new décor, then we suggest you convince yourself to stash that away for your new home

You will definitely want new things for your new home so just wishlist the item until you secure your own abode.

6 Embrace Technology

Technology is a big part of our world so we should be using it to our advantage. Start incorporating tech into your saving plans or purchases. Find all the best deals online if you want something, or find someone who can sell it to you for cheaper on sites like ebay, Ezbuy, Lazada and Mudah.

If you can’t keep track of your finances, download apps that will do it for you. Whatever you need, someone probably already has a solution, service, or app for it – use it to your advantage. Apps like Bill Watch and You Need A Budget (YNAB) help track your expenses and savings.

you need a budget app

SOURCE: expertreviews.co.uk

7 Do your research

Always, ALWAYS, do your research. When surveying the market for property, make sure all your questions and doubts are answered. Look into information regarding the residential area and the unit. Find out as much as you can about the unit you are keen on and the benefits the developer provides, like down payment and legal fee rebates.

research property

Once you’ve scouted and found your dream home, start planning for your purchase by determining the right location. Not sure where to start? Read our article on the upcoming townships in the Klang Valley.

Why you should care

If you’re a millennial and you’re wondering how in the world you’re going to afford your own home, then this is for you.

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