Whatever step to owning a home, prudence is key

2013-07-26 00:00

Becoming a home owner often sounds a tedious task to most young people, especially when they have to go through the entire building process by themselves. However, this is far less expensive when compared to buying an already built house.

Whatever the situation, the daunting task of actualising this dream is simply a commitment and dedication that will translate into diligent savings, even in a squeezing economy like ours where needs are often outweighed by most times unnecessary wants.

The first step however will be to determine what kind of property you can afford so that you don’ get trapped on the way while trying to save for the dream home.

To every project, there must be an allotted time frame else its aim will be defeated. So you must have a certain period you would want to complete your buying process especially if you will have to save to buy. This will also help you in the long run to access your progress and know if your dream is still feasible within the time frame.

Determining your source of purchase is very essential. To this end you are basically limited to three options buying out rightly, saving your income till you get or accessing a mortgage loan.

Buying out rightly require a little financial stress compared to other options.

If you intend to buy your new home with your savings, then you have a big task of saving a huge chunk of your income within a target period. This is will translate to cutting down on regular luxurious expenses for the time being, however experts say the cut in spending is worth the price.

If you settle for the loan option, Experts advise as an aspiring young home owner you explore low-cost loans such as facilities designed by the government to make home buying affordable to low- and middle-income buyers. Benefits from these sources range from low down payments to reduced interest rates, experts say.

 Also, if you own securities, you fear for there future you can either sell them or establish a loan through your stock brokerage to borrow against them if you are sure your new property will out weigh your stock value in future.

It is advisable you do not allow mortgage lenders con you into their no money down plans that make you pay private mortgage insurance and get a horrible interest rates.

By: ODINAKA MBONU