Nowadays, it is difficult to rely solely on income to buy a house because the prices are too high, and we hear about the complaints often. Indeed, it is indisputable that housing prices are high. Still, it seems even more unreasonable to expect housing prices to plummet or return as they were five years ago.
So, what are the tips for buying a house? Is either a one-off payment or taking a loan more appropriate for buying a house? Without further ado, let us discuss the skills and strategies to fully utilize the advantages of a stable salary income to buy a house!
Tips and Strategies 1: Saving or loan to buy a house.
When buying a house, the first reaction from everyone is that "the house prices are too high and unaffordable!". This fact may not be the case when you are buying a house. It would be best to use the benefit of income stability and other characteristics as an employee to buy the house.
According to a person's average net income, If you can save RM 1,000 a month, it will be RM 12,000 a year. By the end of 10 years, it will be RM 120,000. In other words, it will take 10 years for you to buy a house based on the current house price, not to mention the price may change due to inflation and future development after 10 years.
Meanwhile, you can solve the rental issue and live in the house when you buy your home. On the other hand, you can pay the house loan from your savings, making you easily own a house in 10 years. Besides that, the house value may increase if the location is good.
Tips and Strategies 2: Buy a house to avoid debt
Purchasing a home is generally regarded as a good investment compared to renting because you can build equity. When you rent, all you do is pay someone else’s mortgage.
However, some employees don't hesitate to get more loans, which affects them can't pay their bank loans and bear heavier debts, such as car loans, personal loans and etc. Luckily, more people have realized that living in serious debt is tantamount to putting themselves in shackles.
Tips and Strategies 3: Establish house purchase goals
It would be best if you specified the clear goals for buying a house. For example, how much you want to buy, the house's surroundings, location and completed or off-plan properties.
Once your goal is clear, you will create the motive of save toward the goal and register a savings account. It is an excellent self-motivation that makes you move further.
Tips and Strategies 4: Have a frugal life
Buying a house is not a small matter, which means it requires sufficient planning. You can start your saving by recording your expenses and find ways to reduce spending to plan out a budget for your saving. You can also set short-term or long-term goals and arrange your priorities for saving purposes and plans.
On the other hand, you can maintain your life quality and while saving money. Advocate frugality does not mean being stingy. Your saving plan should adequately practise it without over reducing the quality of life. However, you can use any saving method that works if it does not stress you down.
Tips and Strategies 5: Financial management is important
Many employees will stop saving after reducing the monthly expenses and house loan payments. You might get less money in your hand. Therefore, It will be excellent if you can learn financial management and build awareness of finances. The result can be a huge difference even though it's a small amount you've saved.
On the other hand, you can save a small amount of money and invest in mutual funds. In this way, you can use your money to work for you and accumulate fortune as a long-term plan and at the same time relieve the pressure of your housing loan.
Tips and Strategies 6: Liability coverage for the house
Buying a house is a long-term investment and should not be neglected to live a better life. Thus, insurance plans should consider liability coverage for the house, such as buy life insurance, fire insurance, etc. Therefore, insurance is not just about investment but preparing a guarantee for your future.
Conclusion
The tips and strategies above are some guides to look out for when buying a house. It will be great to take advantage of the stable income to save enough money as an employee. And prepare for the impact of your monthly repayment on your daily life. You may start buying a house!
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