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Five Tips To Help You Save for a Down Payment

Now that you are done scouting through neighbourhoods, tirelessly checking every potential house and then undertaking in-depth research of the areas, you have finally decided on a house.  So, the only thing that remains is to pay for the house.

Save for What 1

Buying your own house is no cheap matter. To purchase a house, you have to start saving money from the moment you get your first job and start earning. However, if you don’t have enough money, the other option is to take a home loan. Taking a home loan from a financial institution gives you immediate access to a large amount of money. However, you have to pay a certain financial sum as down payment.

Here are a few tips to help you save up for that down payment.

Know How Much You Need

You can’t start saving up for a down payment without knowing how much you have to save. Before you even start the house hunt, have a sit down with your real estate agent. Your real estate agent should be one that understands you and knows what you want. Only then will you get a correct estimation.

If you have already found a house, then find out how much money you will need for the down payment, registration, brokerage and other charges combined.

Take a Look at the Books

Its time you take a look at your financial books. If you don’t have one, perhaps it’s time you started making one! When you plan on saving, it is important you keep track of your spending and income. This gives you insight into how much money is coming in and where it is going. Once you identify your expenses, you can cut down on the unnecessary ones. Something as simple as this will free up more income for you to save.

Increase Your Income

Another option for you is to increase the income you’re getting. One option is to get a raise, however, that’s easier said than done considering today’s work environment. A more probable option is to try to work on gaining some cash on the side. No, we don’t mean you become some drug dealer! Instead, if you keep your ears and eyes open, there are plenty of schemes which will earn you additional income. You could also consider options such as part time jobs or freelancing in your professional field or hobby.

Have a Sale

Perhaps you should sell off something to give your savings a boost? You could have unused real estate lying around or stock and bonds which can be sold off. As a last resort, you can consider selling off your car. That will definitely give you a much needed boost.

Borrow

This is more of a last resort, if you can’t wait to collect the money for whatever reasons. You can borrow money from your parents, a close relative or a close friend with the promise of paying it back. For obvious reasons, you want to avoid this; however the advantage is that you won’t be charged an interest (ideally!).

Saving money is going to take time, so gear up your patience and don’t get too hasty to make the buy.

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