Buying home is a big decision for a lot of people. And this doesn’t necessarily mean the middle-class income group only. A lot of employed people or even retirees like to stop and think twice before investing their hard-earned money into a property. For, a lot of factors are at play before you can afford to become the owner of your dream house. The most important of them all is of course money. Every prospective home owner wants to maximise savings and minimise risk here.
If you too are on the same boat, here are 7 best ways to save more and spend less on your dream home.
Top 7 Ways to Save During Home Purchase
Pick your agent carefully – When the thought of buying a house arises, the first natural instinct is to start thinking of hiring a property agent to help you get the best deal. Exercising a bit of caution here can really turn the tables in your favour. Not just any agent on the block, you need to be sure that the one you choose for your home deal is experienced and scrupulous. For this, referrals from family and friends can be of great help but do your own research too by checking online reviews of popular agents.
Check loan quotes from several sources – When applying for a home loan, don’t get stuck at just one bank where you’ve had an account all your life. Go to multiple lenders and check each of them for their home loan quotes. Ask in detail about the rates of interest on offer, terms of repayment, processing fee and other fee charges too, if applicable. This would help you negotiate your loan deal better.
Check out all your home options – We ask to check loan quotes everywhere; the same applies to viewing properties too. It’s fairly easy to fall for a particular house you came across, sometimes even the first one! But that purchase isn’t wise until you’ve checked out other options in the neighbourhood and tried to negotiate a better, cost-saving deal.
Always save for down payment – Wise men say that one should ideally keep aside at least 20% of the value of their future home that they have their eyes on. This is a great way to avoid spending too much on private mortgage insurance; in some cases it can cost you .5-1% of the loan amount.
Saving 20% of the home value may sound unachievable but if you start right away, it gets a lot easier. Create a “new home fund” and designate a certain amount of your income to be added to it every month.
Pick only what you need – It may be your first own house but don’t aim for a penthouse when all you need is a 2BHK for you and your family. Sometimes desiring beyond actual needs can bring money troubles in the long run (think of maintenance costs, especially after retirement).
Do some work on the house yourself – It’s tempting to hire interior decorators to beautify your home like a palace. But believe us, doing some things yourself would not only bring joy, pride and satisfaction but also save you loads that you’d end up spending on various contractors.
Keep a check on the home market – Look for particular times of the year when property prices plummet and when it’s possibly the best time to invest into home buying. And when the time is right, don’t forget to negotiate further. It always pays.
Home buying is a wise decision; make it even wiser by remembering the golden rule, “Penny saved is penny earned”.