Buying a home can be a thrilling experience, especially if it is your first home. The process can also be difficult if you do not have the right strategies. And let’s be honest, buying property is not the cheapest thing around. It can really get you sweating and straining. But you do not need to break the bank to buy a home, or property for that matter. As a matter of fact, any employed person can comfortably buy a home without straining – As long as the budget matches the person’s lifestyle.
Making the right investment choices is one of the best ways to ensure you buy your preferred property at a particular point in your life. But needless to say, you’ll need to put a lot of things into considerations before buying home. If you do not plan strategically, then you might as well find yourself ‘homeless’ or living in rentals for quite a considerable portion of your lifetime. Enough with the basics; let’s cut to the chase already.
Here are some helpful pointers on how to purchase a property without breaking the bank.
Budgeting For Your Purchase
The average age of a homeowner in the United States is between 31 and 33 YO. An excellent plan will have to be in place for a person to get a home in the United States at this stage. The average price for a home is between $187,000 and $240,000 and the deposit that needs to be paid for the home is between $50,000 and 100,000 depending on factors such as the type of property being sought after. An average employee gets an annual salary of approximately $82,000. With this income, you can comfortably purchase a home that is worth between $200,000 and $240,000. You can comfortably afford a home that is three times your annual income provided you budget and invest right.
Think About the Expenses
Buying a property comes with quite a myriad of expenses. Before rushing to purchase that luxury home you’ve always desired, you have to consider the expenses you will incur. The purchase is only the first step. You will also have to deal with expenses such as insurance, utilities, property rates, and other fees. Also, when getting home, it is good to ensure that you do not have a high debt rate – Above 41%. Your home’s budget should take into account, the money invested in the home, the debts you have and the expenses you will incur.
Invest Wisely To Grow Your Deposit
The plan for purchasing a home is not a problem. Anyone can plan. The real challenge comes in when you have to decide where you should invest your money and get it when you need it without any regrets. You should be able to access your money when you are set to buy a home. Whatever you do, don’t gamble with it. For money you will need back, government bonds are one of the best and safest places to invest. In addition to bonds, you can also grow your money by investing in shares from large reputable public and private companies. In this case, you’ll want to be on toes with the stock market. Some of the best places you can choose to invest your money include the FDIC Guaranteed Banks, Government Treasury, and Government Saving Bonds. With these investment options, you can always get your money after your period has elapsed or you can choose to reinvest your money.
Even as you invest your money in shares and bonds, you can also get a second job to increase the amount you invest for a higher turnover. Otherwise, a home is one of the biggest purchases most people make. With proper mindset on investing and a great financial plan, you don’t have to break the bank to purchase a property.