There is more than one way to be a homeowner. No, no, no. We’re not suggesting to build one yourself.
It’s no secret that many Gen-Y adults struggle to own to own a home. It’s not like the good old days of our parents when owning a home was simply the natural next attainable step in the evolution of adulthood. Although times have changed, we as a resilient generation have found several unconventional ways to reach that goal of home ownership.
Sharing to buy a property with another person enables you to stretch your finances, which allows you to acquire a better property in a better location. The rule of thumb here is to share the purchase with either a relative or someone who has made a lifetime commitment to you. Making such a big-ticket purchase involving a long period of commitment with a friend – even if it’s someone you grew up with – is far too risky, although not impossible. However, banks would still assess the risks and carefully consider the stability of the relationship between the joint borrowers before approving the loan.
2. Get a side hustle for extra income
The side hustle is already synonymous with Gen-Y adults, many of whom earn extra income via part-time jobs. There are many options available, such as signing up as a Go Getter to run errands on demand. For a more passive option, you can try something like Wrapla which pays you to turn your car into a billboard for advertisers. All you have to do is drive around to meet the agreed mileage and watch the numbers in your account grow at the end of every campaign. The more you earn, the stronger your capability to own a home. You can easily increase your monthly earnings by an additional of RM1000 (and above) by side hustling.
3. Invest in a high return fixed deposit
If you’re in no hurry to purchase a house, you might want to consider investing some of your savings into a fixed deposit. Look for one that has a high return rate so that when you are eventually ready to withdraw that investment to purchase a house, you will see a sizable growth in your savings. This requires some planning but like any big purchase, planning is essential.
4. Use credit card, get cash back
Another option to consider is using your credit card to pay off the down payment. No, really. Making a down payment can be tricky if you’re strapped for cash. On the other hand, it could be an opportunity to rack up credit card rewards, if your card offers them. Granted, this is only applicable if you have a big enough credit limit on your card.
Of course, the down side of this is that the interest rate might be too high for it to be worth it. So, make sure that you have the full down payment amount ready, so you can reap the cash back benefit and pay off the debt before the interest kicks in.
5. Strike an agreement with your landlord
If you’re planning to buy a home, but are still struggling to come up with a sizeable down payment, try cutting a deal with your landlord. Whether it’s a studio apartment, a three-bedroom condominium or a landed property, renting is a quick and often painless solution for many of us. However, the catch here is you’re coughing out a lot of money monthly for a property that isn’t yours.
If there’s one thing that could make renting better, it’s a rent-to-own policy. You can strike a deal with your landlord to allow you to rent the property for a fixed period of time and factor the accumulated rental paid into your down payment. It’s a win-win situation. Your monthly payments end up with you owning the home you’re in and your landlord gets to sell off the property hassle free.
6. Look for developers who offer home ownership schemes
All the options above are certainly manageable but there are no guarantees that they will work out the way you envisioned them. However, there are other creative ways you can try to increase your rate of success in owning a home.
Some developers offer home ownership schemes to help you own your dream home. Schemes such as #OnlyEcoWorld Help2Own offers exactly that. All you have to do is pay 5%, apply for a 75% 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.
Before you know it, you can be the proud owner of a beautiful home in one of EcoWorld’s many developments around the country. Visit EcoWorld’s galleries nationwide today or call for more information.
Happy buying folks!