Thinking about buying property? Here are some tips on how to save and make your dream come true!
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It’s no secret that the housing market is going through a period of uncertainty. Home prices are still depressed, and mortgage rates are at historic lows. The real question is: how can you take advantage of these conditions to buy your first home? If you want to get yourself on the property ladder, here are six tips that will help save money for your first home:
Invest in a TFSA
A Tax-Free Savings Account (TFSA) is a great way to save money for a down payment on your first home because any money you withdraw is tax-free. You can contribute up to $5,500 per year (or $10,000 if you haven’t contributed in the past), so if you start saving now, you can have a decent down payment saved up in a few years. The best part is that you can set up a TFSA with any bank, and there are no penalties for withdrawing your money if you need it. The process of opening an account is very straightforward, and you can even do it online in just a few minutes. All you have to do is go to your bank’s website and follow the instructions. Some banks even have special TFSA accounts which offer high-interest rates, so be sure to shop around.
Have a good Realtor
A good real estate agent can save you a lot of money when you’re buying a home. They will be familiar with the local market and can help you find the right property at the lowest price. For example, if you are trying to save money to buy a house in New Zealand, a good real estate agent will know which areas have the lowest prices and can help you negotiate a better price with the seller. According to different property investment in New Zealand guides, the real estate agent’s commission is typically 3% of the purchase price, and the amount of money you save with their help will more than make up for this fee, so it’s worth finding a good one. This can come in handy if you need some extra money for a down payment on your first house.
Get Rid of Your Debt
One of the best ways to save money for your first home is to get rid of your debt. If you have a lot of high-interest debt, you’re wasting a lot of money each month which could be put towards your down payment. One way to get rid of your debt is to consolidate it into a lower-interest loan. This means that you’ll have a single monthly payment, and you’ll be able to pay off your debt much faster. Another option is to use a credit card with a low-interest rate. If you can’t afford to pay off your entire balance each month, at least try to make more than the minimum payment so you can reduce the amount of interest you’re paying.
Get a Part-Time Job
If you want to save money for your first home, one of the best things you can do is get a part-time job. Not only will you make extra money which can be put towards your down payment, but you’ll also develop good money habits which will help you in the future. There are a lot of different part-time jobs out there, so you’re sure to find one which suits your skills and interests. For example, if you’re good with people, you could work in customer service or retail. Or, if you’re good with computers, you could work as a web designer or data entry clerk. Whatever job you choose, make sure that it’s something you enjoy so you don’t mind putting in the extra hours.
Save Your Raises and Bonuses
Whenever you get a raise at work or a bonus, put that money straight into savings. It’s easy to think of raises and bonuses as “extra” money that you can spend on whatever you want, but if you’re serious about buying a home, it’s important to resist the temptation. By saving your raises and bonuses, you’ll be able to boost your down payment fund quickly and efficiently. Just be sure to automate your savings so you don’t have to think about it—that way, you’ll be less likely to spend the extra money.
Invest in a Rental Property
If you’re looking for a way to make some extra money to save for your first home, investing in a rental property can be a great option. Not only will you make money from the rent each month, but you’ll also see a return on your investment when you sell. Plus, if you’re smart about it, you can use the rental income to cover the costs of owning the property, such as mortgage payments, insurance, and repairs. Just be sure to do your research before you invest—you don’t want to end up losing money on a bad investment.
As you can see, saving money for your first real estate purchase doesn’t have to be a difficult task. With just a few simple tips and tricks mentioned above, you can amass the funds you need in no time at all. Just follow these six easy steps and you’ll be on your way to homeownership in no time!