TNews – Buying a home is one of the long-term financial goals cherished by many people. However, to achieve this goal, thorough preparation is required, one of which is saving money. Here are some tips for saving to buy a house:
1. Determine the price of the house you want to buy
The first step to take is to determine the price of the house you want to buy. This is crucial in figuring out how much money you need to save.
When you decide to start saving for a house, the first and crucial step is to establish the price range of the house that suits your needs and financial capacity. This forms the basis for your savings plan. To do this, you will need to research the real estate market, examine house prices in your desired area, and consider factors such as size, location, and amenities you want in your home.
Moreover, you also need to decide how long you intend to save before you can purchase the house. This will help you determine the monthly savings amount required to reach your goal. Setting the house price you want to buy is the essential initial step in planning your financial goal of owning a home.
2. Focus on accumulating the down payment
Down payments for homes typically range from 15% to 20% of the house’s price. Therefore, it’s essential to concentrate on accumulating the down payment first.
After determining the price of the house you wish to buy, the next step is to focus on saving for the down payment (DP). The DP typically ranges from 15% to 20% of the house’s price. This is the amount of money you’ll need to pay upfront when purchasing a house, and its exact size may depend on the lending institution or bank’s policy.
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To stay committed to your goal of saving for the DP, it’s advisable to set up a specific savings account for the DP. You can automate monthly transfers from your salary account to this DP savings account. This approach ensures discipline in your savings and gives you a clear view of how quickly you can reach your DP goal.
3. Determine the monthly mortgage installment within your means
If you decide to buy a house with a Mortgage Loan (KPR), it’s essential to calculate a mortgage installment that fits your financial capacity. An overly large mortgage installment can burden your finances.
When you opt for financing your home purchase with a Mortgage Loan (KPR), it is crucial to carefully consider the size of your monthly mortgage installment. You must ensure that the mortgage installment aligns with your financial capabilities.
To determine the appropriate mortgage installment, you need to perform thorough financial calculations. First, calculate your total monthly income and subtract all monthly expenses, including the KPR installment, living costs, and other savings. Ensure that, after paying the KPR installment, you still have enough money to meet your daily needs and address any emergencies. Avoid a situation where the KPR installment strains your finances, impacting your financial well-being.
