Housing is undoubtedly a basic human need that everyone deserves. We all dream that we can own a home that meets our tastes and wishes. One of the proudest moments in my life was buying my first home at 25. This move came one year after graduating from campus. It can be difficult to do this, however, especially if you need to compare bridging loans just to reach the initial deposit, but it is not impossible.
If you are looking to own a home, I will share some of the tips that enabled me to buy my house at such a young age. Whether you’re starting your first job or just got your business started, these tips will help you make great strides in that direction.
1. Calculate How Much You Need
Before you can think of owning a house, you need to identify the type of home you are looking for and how much it will cost you to buy the said property. A good practice is to calculate the house's total cost and how much it would cost to put a down payment on your dream house.
My dream was to own a condo and to get to this goal, I started by scouting the prices in the area that I wished to buy one. I must admit that the prices scared me at first, but I was not budging from my dream. Once I knew the cost of the condos, I went ahead to calculate how much down payment I would need before I can get a mortgage.
2. Start Saving for Your Down Payment
With the calculations done and a clear understanding of how much you need to buy your house, the next step is to save towards your down payment. Set actionable savings goals and a plan that will enable you to reach this target within a time frame that is favorable to you.
To save towards my down payment, I calculated that it would take me half a year to reach that target. However, to get an advantage, I ensured that I stretch the limit to one year so that I could double my initial amount. By doing this, I effectively doubled the down payment I would make and also reduced the payment time for the balance.
3. Open a Separate Savings Account
Opening a separate savings account from the one you usually use comes in handy as you save towards buying your first home. While it is not necessary that you do this, a separate savings account ensures that you can stay on track without juggling your finances. Through this, you stand a better chance of not spending your home savings on something else.
I opened an online savings account that allowed me to remit the money I managed to spare from regular spending towards my house buying goal. Through this account, I was able to consolidate my savings, and I managed to reach my target in a record nine months against my goal of one year.
4. Take Up a Side Hustle
With a savings goal in place and the need to reach it within the time I set for myself, I decided to put my free time into prudent use. I took up a side hustle that allowed me to earn extra money, which I could then add to the savings account I opened. This side hustle came in handy also in enabling me to boost my income to meet my daily bills, and thus I could resist the temptation of withdrawing from my savings.
Conclusion
Your dream of owning a home is viable provided you have a plan. Follow the tips that I offer above in this post to help you start saving towards your first home.