Buy Your Dream Home: Saving Up for a Down Payment

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couple looking at their house

Renting can be great, but it has its own downsides. Some landlords can be rude, and the choice of location is sometimes limited. On top of that, the payments that go to your landlord does not help you build personal equity.

If you are tired of renting now, considering a real estate property will surely do you a lot of good. This is because a real estate property, whether a house and lot or a condo, does not depreciate. Over time, its value gets higher. Your rent could have gone to an investment that grows over time!

To start your home buying process, you need to find a home that suits your lifestyle and current budget. This is where you will also need to read lots of housing loan guides in the Philippines. Once you have locked in your choice, you are supposed to start saving up for your down payment.

Here are some tips you may want to keep in mind:

Make a savings goal

savings

Now that you have dedicated yourself to building your down payment, you need to have a savings goal. But this will depend on how much you are willing to pay for the down payment. Depending on the property, you can save up to 20% of the total contract price. But the bigger, the better.

When you already have a savings goal, it will be much easier for you to determine how much money you’re supposed to set aside every month.

Cut down on some living expenses

You may not realize it, but some aspects of your life can actually be adjusted so that you can add more money to your savings. For one, if you always eat out and decide to prepare your own meals, you are sure to save up to P5,000 a month.

The same goes for your coffees; you can brew your own and save a lot. Fight the urge to buy more clothes and sneakers, as the money could very well be added to the monthly savings.

Find a side gig

The goal here is to build your down payment either by cutting corners or making more money. The latter may be something that you should consider. If you think you have a marketable skill, you can use it to earn. For example, if you have great writing skills, you can work as a freelance writer.

Being a dog-walker can also help you get more money.

Postpone some upcoming expenditures

A lot of people have their traditional or annual big-ticket purchase. Some may be collecting a designer handbag every year, while others may be travelling abroad. Postponing any upcoming big-ticket splurges will surely help you build your down payment.

Buying a home requires a big wad of cash. And saving up for it can be pretty challenging. Overall, it is not impossible. All you have to do is to reconfigure your budget and start altering parts of your lifestyle. You may be required to make some petty sacrifices and give up some conveniences.

But it will all be worth it in the end. A proper mindset is something that you should have.

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