Owning your own home is both a blessing and an accomplishment that comes with major benefits. Many people would love to own a home but there can be challenges that come with home ownership, such as saving enough money to actually make the purchase.
Saving money to invest in a new home is not a walk in the park – it requires discipline and commitment. Many people, especially millennials, have a huge problem when it comes to saving. We live in a world where we are used to getting things fast or on demand, without having to spend too much time, money or effort. This makes the idea of home ownership even more challenging and often times, people end up spending money on rent rather than investing in a home because it is faster and easier. Rent, however, has its own disadvantages when compared to owning a home.
Here are several benefits of owning a home rather than renting.
- Life expectancy – Life expectancy today is high. This means that if you take up a mortgage to pay in twenty years, you still have a lot of time to live rent free. Especially if you start paying your mortgage when you are young.
- Privacy – Home ownership means that you have more space and freedom to keep to yourself if you so desire, unlike when you live in a rented house or apartment where there is constant interactions with neighbors, maintenance technicians, etc.
- Rising Interest rates– Interest rates keep fluctuating, which means that rent may increase with time. The total cost you might spend on rent for many years can add up to be more than buying a house.
With all of this in mind, here are several easy steps you should take to save up for a new home.
- Be specific on the date you want to move in and plan from there – If you know the date you want to move in to your new house, then you can save towards that and avoid procrastination.
- Get a mortgage plan that is affordable – While being ambitious is good, remember to also be realistic. Get a mortgage that you can afford while also still pay for your day-to-day expenses.
- Practice – In order to be sure that you can afford paying mortgage, practice making payments to a savings account and see if you can make that payment on a daily basis.
- Set up a savings account for maintenance – You do not want to move into a new house with old furniture or equipment. Therefore, as you plan for your new home, save money for maintenance and interior designing. Download a money managing app like Mint that will show where you currently stand financially and ways to improve.
Buying a home for the first time can be scary, but at the same time exciting. Save up for your new home and see just how rewarding homeownership can be.