Buying a new home is such a major purchase that it can probably be one, if not, the most important purchase in an average person's life. Thus, making the necessary preparations before starting the purchase process is as important.
One of the biggest and hardest things you will do is to try and save up enough money for the deposit. No matter what loan you get, you will need to have enough for some kind of deposit and also for the other costs that come with buying property.
For a consistent plan to work, determine how much money you need to raise. With a set amount in mind, you can establish the time it takes to complete the goal and by how much you need to put aside on a daily or monthly basis, as the case maybe.
One thing you need to do first while in the planning stage is to determine the price of a home you can afford. Generally, it is possible to buy a home that costs twice as much as your gross annual salary as long as you have no heavy financial obligations such as high unpaid credit card balance or alimony responsibilities.
Having a clear goal, evaluate your lifestyle and make it adapt to the task of saving for a new home. Eliminate all non-essential expenses and avoid unscheduled purchases.
One valuable strategy is to make your savings a deduction from your income before you even get hold of it. You can open an exclusive bank account which has a feature that automatically withholds your savings from your salary account.
Other sources of available funds can be tapped and added into your savings. If you are a first-time home buyer, you can give yourself a loan through your 401(K) or your retirement plan.
Your family can be another source of additional funds for your savings account. A wealthy family member can give you $13,000 within a year (the maximum amount for 2009) without being charged a gift tax.
One of the biggest and hardest things you will do is to try and save up enough money for the deposit. No matter what loan you get, you will need to have enough for some kind of deposit and also for the other costs that come with buying property.
For a consistent plan to work, determine how much money you need to raise. With a set amount in mind, you can establish the time it takes to complete the goal and by how much you need to put aside on a daily or monthly basis, as the case maybe.
One thing you need to do first while in the planning stage is to determine the price of a home you can afford. Generally, it is possible to buy a home that costs twice as much as your gross annual salary as long as you have no heavy financial obligations such as high unpaid credit card balance or alimony responsibilities.
Having a clear goal, evaluate your lifestyle and make it adapt to the task of saving for a new home. Eliminate all non-essential expenses and avoid unscheduled purchases.
One valuable strategy is to make your savings a deduction from your income before you even get hold of it. You can open an exclusive bank account which has a feature that automatically withholds your savings from your salary account.
Other sources of available funds can be tapped and added into your savings. If you are a first-time home buyer, you can give yourself a loan through your 401(K) or your retirement plan.
Your family can be another source of additional funds for your savings account. A wealthy family member can give you $13,000 within a year (the maximum amount for 2009) without being charged a gift tax.
About the Author:
This individual has been blogging about saving for the previous two years. Moreover, the individual takes pleasure in publishing articles with respect to NYC neighborhood subjects, like apartments in Murray Hill along with Roosevelt Island apartments.
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