The acquisition of a property of your own is the dream of many people, but it is also a great challenge, because it requires a lot of cost cutting and sacrifice. And that’s why many consumers sometimes get lost in the midst of possibilities, ending up in debt and finding serious difficulties to pay off the financing or loan assumed. How about seeing some suggestions for you to save more money and buy your property easier and faster? Then check out our post and turn your dream into reality:
Reserve a monthly amount
Raising money to make a bigger investment in the future can be made much easier if you create a monthly payment commitment for yourself. In this scenario, you would take at least 10% of your earnings and put it in some fixed income fund or medium term redemption investment, both of which let you know exactly how much you will earn at the end of a certain period.
Apply an amount in CDBs
Bank Deposit Certificates (CDBs) are private securities issued exclusively by banks. They can be fixed in advance, so that the client agrees a fixed rate of return with the financial institution, or floating-rate, using an index to calculate the income to be obtained from the investment.
The risk of this application is due to the eventual bankruptcy of the bank. However, the biggest advantage is that the investment of up to 250 thousand Dollars in the CDB is guaranteed by the Credit Guarantee Fund. As the guarantee is valid for each CPF and financial institution, the decomposition of more than one investment in that amount is allowed in several banks.
Get rid of all your debts
It takes a little willpower to avoid making purchases on installments for a long period of time, so as not to commit your money to purchases that will delay the realization of the dream of buying the property. If there are open accounts of obligations assumed at other times, make an effort to settle the commitments and not get stuck in the excessive interest that is usually charged in the installments?
Research about financing
There are numerous home financing contracts in banks, with different interest rates and funding conditions. Therefore, try to finance the lowest possible amount and for the shortest time possible according to your conditions. Try to make the biggest down payment you can and don’t sign a financing agreement that will compromise your income for more than 15 or 20 years and installments related to more than 30% of your net income.
Make a good home budget
It is worth writing down all your expenses, not only to understand well where and how you and your family spend the available resources, but also to identify superfluous or less relevant expenses, which can be cut or greatly reduced. You must create a control so that you don’t spend more than you earn, writing down every exit and entry of resources, in order to see where your money is escaping.
It is important to remember that if you do the right things now, you will have a positive return later and you will be able to achieve a quality of life for much longer. On second thought, of course it’s worth the effort, don’t you agree?
Now comment here and tell us what you’ve been doing to speed up the purchase of the property of your dreams! How is your financial control? Share your experiences with us!
Posted by: John Labunski
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