Being a homeowner is a dream that all of us have with open eyes in broad daylight. And this is one dream that is the most difficult to fulfil, as it is one of the most expensive ones.
It can take people a lifetime to come to a point in their finances when they can afford to buy a home for themselves. And even then some of us fall short.
Yet, the dream never diminishes for a second. There is not a day when people do not think about becoming a homeowner and building memories in a home that they would not ever have to vacate because the lease is up and the landlord would not renew it.
Here are a couple of ways you can do it.
Ration, Budget and Save!
Buying property is not economical even in the slightest. It can take years and years of salaries being saved up to have an amount that might justify only half of the value of the property you are going to call you home.
So, savings are of utmost significance for all of our future homeowners.
And let me you one thing, you do not have to save the entire sum equivalent to the value of the home. That is an unrealistic saving hope and would never come true.
I am saying this because the value of property keeps rising every year. So this year you might come enough to save as much is needed to buy a home, but the next year’s rise in property value would make the target seem too far again.
A loan has to be the only option, and for that loan, you only need to invest as much as the loan provider will finance one-third of the value of the home and the rest.
So, start saving today.
Make a plan, find out where you can cut off expenses and where you cannot, prioritise the latter and stick to the project. Eat Ramen a few days a week, if you have to.
Substitute Rent with Instalments
You must be living somewhere right now, and you must be paying rent to make use of the premises you are living in, right?
And tell me honestly, is your monthly rent, not the most significant expense you spend on every month?
This is money that has gone out of your pocket every month and never coming back. Then is this not a waste of your hard-earned income. We do not exhaust ourselves with work every week to drain our finances. Am I right?
What if I told you that instead of draining your income through you can build an asset out of it? Would you be glad to hear it?
I know I certainly would.
Instalment loans are one way of financing that allows a person to make monthly instalments according to his monthly income and budget.
So, instead of paying rent, you would be paying instalments and one day, you would pay the entire sum back and become a homeowner.
Invest, Invest and Invest!
There is a third way, as well. You can also take up investing if your income allows you to.
Investment is an excellent way of fulfilling all your financial goals. The options of investment are enough to efficiently cater to your risk bearing abilities and allows you to become comfortable with the safer option and then try a hand at the riskier side.
From Fixed Deposits guaranteed returns to the highest rewards of the share markets;
From the security of governments to the uncertainty of mutual funds;
From agricultural investments to technological ones;
The investment would and its returns will make you competent enough to buy your home much earlier than just saving and budgeting would ever allow you to.
A combination of all three of these ways will make your dream home come to fruition in less than half a decade.
Even with savings and investment, you might feel the need to seek a loan lender, so do not be disappointed if that happens. Just remember the loan would end one day, and the home will be yours one day.
Emma Anderson is a highly accomplished Editor-in-Chief at 24cashfinances, renowned for her exceptional expertise in the finance industry. Holding degrees in Finance and Marketing, Emma has developed a deep understanding of the financial landscape, particularly when it comes to loans and personal finance.
Emma’s professional journey began as a financial analyst, where she gained hands-on experience in evaluating market trends and analysing investment opportunities. Emma’s enthusiasm for writing and her goal to educate and give individuals a voice motivated her to move into financial journalism. Her work has been published in popular magazines and she has produced thought-provoking pieces on various financial topics.