The road to owning property isn’t an easy one, but it has both personal and financial benefits. Owning and maintaining a property builds responsibility, increases organization, generates revenue, and improves managerial skills. Before you can become a property owner, you must plan and save. Here are a few suggestions to help you save for your property owning dreams.
Research to find out the property value of homes or apartments in your area, or the area of your intended property purchase. Then calculate how much it costs to make a down payment, and pay for the entire property. Include any maintenance–construction or remodeling–that the property may need immediately. Also calculate maintenance issues that you believe could surface in the future.
Decide on whether to seek out a loan or pay the entire balance with your savings. We recommend paying with your own income to avoid future debt.
Work on Increasing Your Wages
Full-time workers should request a raise or additional work, freelancers or independent contractors should raise their rates, and underpaid workers should seek a new career or a second source of income. Apply to every opportunity to increase your funds: side gigs, temporary work, graveyard shifts, and task work. The more money generating opportunities that you can reasonably accomplish, the faster you hit your savings goal.
Set up a savings account that automatically deducts your earnings when you receive a new paycheck.
Start by writing a list of all your daily, weekly, and monthly expenses. Then divide that list by needs, wants, and unnecessary. Unsubscribe or stop buying everything in the unnecessary list, and then evaluate which items on the wants list you can eliminate from your monthly expenses. Be ruthless about cuts. If you can live without it, let it go.
Save on rent by living with a relative, finding cheap housing, or living with roommates. Give up short term desires for the long term goals. Say goodbye to weekend getaways, trips to Europe, and lavish shopping sprees. Instead, whenever you think about spending, remember your long term goals of saving to buy property. You do not have to completely give up everything, but you have to do it less often.
Live frugally. Make it a habit of using coupons whenever you go shopping. Whether buying athletic wear from Oakley or groceries from Target, find coupons, either directly through the retailer’s website or Groupon. Additionally, cook more than eating out, sign up for a streaming site instead of going to the movies, and buy clothing from secondhand shops.
Pay Off Debt
The most important tool you can have when buying property is a good credit history. Improve or maintain your good score and report by paying down debt. When the opportunity arises, make additional payments each month. Before paying for property, aim to pay off all major debt so that you can completely focus on paying off the building.
Get a Partner
Consider partnering with a close friend or family member to help finance the project. Teaming up with someone to buy property will make the journey a lot easier, but make sure it’s a person you completely trust: a trustworthy partner, who is financially stable and mature, leads to less stress and headaches.