Owning a home is much easier than it’s made out to be.
Owning a home is a major and necessary commitment for young adults stepping into adulthood. There are a lot of things to take into consideration before you can decide to purchase a property to call home, the biggest of which is can you afford it?
The dream of owning a home is possible if you make sound financial choices. You have to be smart with handling your earnings if you want to start owning a home. And yes, there are more ways than one to help you realise that dream of becoming a home owner. So, buckle down and let us guide you through some of those options.
1. Identify locations that are close to public transportation
For most Gen-Y, their transportation budget easily takes up the biggest chunks of their entire spending. So, a great way to save some money is to look for housing options that are located close to your office. That way, you reduce your cost of transportation, which can instead be channeled into your savings or to pay for that house.
In fact, you could also look for home options close to public transportation hubs – MRT, LRT, bus stations – that way you can still save on fuel and toll costs as public transportation is a much cheaper alternative.
2. Save as much as you can for 12 months
This one is an obvious one but bears repeating. Give yourself a little saving challenge where you put away some money each month for a year. You can decide to put away 10%-20% of your monthly earning into a separate savings account that you won’t look at, making it less likely for you to make a withdrawal. Otherwise, you could opt to take on a little side job to make some extra cash specifically to save up for a house – teach classes, go freelance with your skills, or sell cookies.
3. KWSP withdrawal-account 2
Now, this is not an uncommon option, and for good reason. The second account of your KWSP is there for when you need to withdraw before you turn 55 years old or after your retirement. Specifically, you can withdraw from that account to pay for education, medical treatment, and to buy a house. So, when you’re ready to buy your dream home, your second KWSP account is ready to help you out with the deposit. It’s your savings after all.
4. Buy properties that are within your budget
One of the follies of our generation – Gen-Y and beyond – is that we tend think bigger is better. We want what’s good and we’re willing to pay for it. Now, that’s a great policy to take on most things but when it comes to spending on big ticket items like property, starting small is best. The important thing is that you start. You should shop for property that’s within your budget, even if it’s a low to mid cost house or flat. Then when you move up the ladder in your profession and start earning more, you can upgrade to a better place.
5. Research and leverage on down payment assistance/schemes
Just like anything else, you can only make good financial decisions when you know as much of the facts and options as possible. So get on that computer and start researching any down payment assistance or schemes that you might qualify for. These schemes are there to help you own your dream home, so you should definitely take advantage of that.
#OnlyEcoWorld Help2Own is one such scheme that can help you realise your dream of owning a home. All you have to do is pay 5% of the down payment, secure a 70% loan from a bank and EcoWorld will take care of the rest for you. This offer is available for a limited time only with terms and conditions apply.
To find out more about this scheme, visit EcoWorld’s galleries nationwide today or call for more information.
See no fuss, right? Enjoy owning your first property!
ALSO READ: 6 Creative Ways for Malaysians to Own a Home