Gone are the days when people used to buy their dream house when they were old and gray. Instead, people as young as their late-20s also take home loans and purchase fancy apartments or houses!
Did you know that in the US, nearly 47.9% of homeowners are millennials? Well, irrespective of where you live, you can also buy the home of your dreams in a few easy steps!
So come on, let’s start!
1. Be financially aware
So first things first, you need to have a very clear idea about where your finances stand.
Since you’ll be buying your house with your money, the down payment has to be made from your bank account. And that can only happen if you have enough money in your account.
If you’re unaware of your expenditure, you can always start by making a monthly list. Then, start cutting your costs on unnecessary things and save as much as possible. If there are any outstanding debts, clear them as soon as possible.
2. Stay Informed
Even though young people are pretty tech-savvy nowadays, they can fall prey to loan sharks and scam loans. This is why you must be very careful about where to take a loan and how to go about it.
Ask your parents, relatives, and anyone with experience in this area.
You can also check out Real Simple Home Loans if you live in Australia. They facilitate quick home loans at competitive interest rates. Not only that, but they will also assist you with how to fill out your loan paperwork.
3. Invest your excess income
Yes, start investing in schemes that will guarantee you high returns.
Many young citizens often put their money in fixed deposits (FD) or recurring deposits (RD) because these schemes are not affected by market fluctuations.
However, you can even opt for mutual funds or stock exchange, provided you know how they work.
4. Arrange for a down payment
Arranging for a down payment is usually lengthy, but if you have the right kind of guidance, this will all be a walk in the garden!
For example, Real Simple Home Loans will provide you with all the basic information about your home loan down payment.
Usually, lenders will ask you to pay 10-20% of the cost of the house as a down payment, and the rest can be paid through loans. As a rule of thumb, it’s best to pay as much through a down payment as possible because it reduces the overall cost of purchasing.
5. Prepare for other expenses
Simply buying a house won’t do; you need to be prepared for additional costs as well, such as electricity bills, gas bills, the cost of renovating the house, etc.
Even when you’re preparing to buy your house, you must pay a stamp, registration, and title deed memorandum fee.
While it can be difficult to accurately predict the total cost of these expenses, you should have a basic idea and set aside some money for them. If you cannot, ask a family member to help you.
6. Choose an optimal tenure
If you’re able to choose an optimal tenure, it will allow you to buy a house at a young age and also ensure that the loan isn’t burdensome.
Many people opt for a longer tenure so that they can pay small amounts such as EMI. Still, looking at the bigger picture, this option ultimately adds to your already-accumulating interest and can even surpass the original cost of your borrowings!
So, it’s always wise to keep the tenure short.
Over to you…
If you have decided to buy a house at a young age, it’s truly a great achievement. But make sure you know the nitty-gritty of the entire process, so you don’t struggle later.
Home loan interest rates are pretty low, especially after the pandemic, so this can be the ideal time to go and look at some properties now. Other than that, you should also talk to Real Simple Home Loans experts to make an informed decision.