Buying a new home is one of the biggest decisions you’ll have to make in your life, and planning for this monumental purchase can be both challenging and time consuming. Purchasing a house can be a very emotional decision so it is important to carefully consider your options and take time to thoroughly plan each avenue. With so much at stake, you want to make sure you have covered every scenario and considered every detail where possible.
Put money aside for a down payment – Even if you aren’t planning on purchasing a home any time soon, it makes sense to begin saving for the future and saving money if your attitude or circumstances change. The earlier you begin to save a percentage of your monthly income the quicker it begins to grow, and before you know it, you have a substantial amount of money in your account.
The best way of doing this is to set up a direct debit so it won’t become a chore to deposit money into your savings account. Try to put aside at least 12% of your monthly income or whatever is manageable after you have paid all your expenses.
When the time finally comes to buy a new property, most mortgage lenders will require you to put down at least 20% of the purchase price as a down payment.
Consider contacting a financial planning service – A financial consultancy firm will be able to advise you on the most appropriate way to save for a new house. They can develop a strategy which makes assessments on your current income and creates a suitable plan for your specific situation. They understand how to set financial goals that are realistic and achievable, they also know how to adapt them to integrate into your unique lifestyle. Elders financial planning can provide customers with invaluable information concerning financial plans adapted to suit the various stages of your life. They deal with life events such as:
- Purchasing a new home
- Education costs
- Establishing a new company
These are only a few of the many life events financial planning companies can assist with.
Create a Contingency Plan – It doesn’t matter how well you have planned and evaluated your situation there will always come a time when an unforeseen event or unanticipated incident will occur. The best way of planning for this is by setting up an emergency fund just in case you need to dip into it to help you out of a jam. Once you move into your new home, you will be surprised at the amount of unexpected issues which arise, by creating a contingency plan you will be better equipped to deal with unforeseen events.
It is advisable to build your emergency fund for a few years before you even consider stepping onto the property ladder.
Planning is the key to success and avoidance of any major incidents when the time comes to purchase a new property.