How to start saving for a home
Many people after wedding dream of someday owning their own homes but this dream is not something you can achieve quickly. Becoming a homeowner involves building up a great deal of savings in order to be able to make a down payment and then to afford a mortgage. With the proper preparation, however, you too can realize your dream of owning a home – simply follow these tips and start saving now!
1) Decide How Much You Need to Save
When saving for a home it is important to be able to set a goal. In order to set a savings goal, however, you need to decide what kind of house you can afford. When making these considerations, you need to think in two directions – how much can you afford to pay each month toward your home loan + wedding loan (if you have one, i.e. WeddingLoansOnline) and how much of a down payment will you be expected to make?
2) Decide When You Want to Buy
Property values generally increase over time, so take this into consideration when creating your savings plan. Set yourself a realistic goal of when you would like to purchase your home. Once you have decided when you want to buy and how much house you can afford you should be able to structure your savings plan around these factors.
3) Decide Where to Invest
There are many investment options out there and choosing one or several can be difficult. Many homeowners decide to invest in mutual funds using a Systematic Investment Plan (SIP). This plan will help you to save regularly – every month or every three months you will be required to deposit a check in a predetermined amount and your mutual funds will be allocated to you accordingly.
4) Start Saving Now
It is never too early to start saving for a home. Even if you do not know when you would like to purchase a home, starting to save early can only benefit you. Consider opening a recurring deposit with your bank or setting up an SIP with a mutual fund.