If you are highly focused on saving for a house, you may have to eliminate factors that may be holding you back. For example, moving into a smaller apartment before you finally buy your own house may help you save significantly on your monthly rent.
When saving money to buy a house, this has to be the most important strategy. By setting financial goals, you can understand exactly how much you need to save and by when. The best way to stick to your budget is by following the 50-30-20 rule.
A high-yield savings account is the best investment plan for buying a house since you can earn interest on the amount saved. One super reliable option is Freo Save’s digital savings account which allows you to earn up to 7% interest which is even better than a fixed deposit account.
No amount of research on how to save money for a house can really help you if you’re not ready to let go of bad financial habits. These little lifestyle changes can help you reach your financial goals faster.
Paying fixed EMI is much easier than arranging for a lump sum amount for the down payment of a home. So, you can monetize your assets and get enough funds to purchase a property in EMIs.
You can leverage the gig economy to make money on your own time doing what you like. For eg, if you’re into photography, you can take up some pro work to create a portfolio and then start taking up freelance projects. You can start earning from your hobbies.
When you’re considering a home loan, it is important to remember that the more debt you have, the less favourable you become as a candidate. This means that you may end up having a higher down payment requirement and paying more interest So, before you jump into it, take time to reduce your debt.