Your search results

Tips for Young Adults to Begin Saving for Their Future Home

Posted by Jayson Ang on August 5, 2023

| 0

TLDR

When aiming to purchase a home, it is crucial to gain knowledge about the buying process and track your spending to prioritize saving. Consider leasing out your property for additional income and engage in financial discussions with your partner. Evaluate the right time to buy or sell by seeking strategic real estate advice. Stay informed about market trends and make data-driven decisions to navigate the real estate landscape effectively.

You aspire to become a homeowner someday. However, the complexity of the real estate market coupled with the high cost of owning a home can be daunting.

Moreover, the competition for available homes is fierce.

The good news is that there are actionable steps you can take presently to steer yourself towards achieving this goal in the future.

1. Gain Knowledge About The Process Of Purchasing A Home In General

To begin with, it is advisable to acquaint yourself with the process of purchasing a home. I have provided a comprehensive guide outlining the necessary steps for buying either a resale HDB flat or a condo

You can refer to these articles for further assistance.

Step-by-step Guide to Buy Resale HDB in 2022

2023 Guide to Buying a Resale Condo in Singapore: How to Buy?

2023 Guide to Buying New Launch Condo in Singapore

Purchasing a home is a significant life decision and requires a substantial financial commitment. It is crucial to have a clear understanding of the process, regardless of your age.

The process can be challenging due to various factors that need consideration, such as affordability and eligibility for the specific property you intend to buy.

Therefore, it is essential to be well-informed before making any decisions. The accumulation of wealth can be achieved by leading a modest lifestyle.

2. Track Your Spending

To give practical financial advice to young people, it’s important to keep track of where your money goes by calculating your expenses.

Opt for savings whenever possible and remain committed to your financial objectives. To determine your monthly and annual budget, tracking your expenses is crucial.

To create a tracking sheet, you can utilize free templates available on Google Sheets that require you to enter your expenses, such as food, travel, and entertainment.

This will help you identify areas where your funds are being depleted excessively. Ultimately, this will assist you in saving up funds to finance your future home.

Need Vs Want

It’s important to know where your money goes and what you spend it on. This will help you remember an important tip when you come across a tempting deal: distinguish between what you need and what you want. This will help you focus on achieving your long-term goals.

For example, if you aspire to own a house someday, you should research the current property market and forecast how it may change in the next few years.

With this knowledge, you’ll be motivated to reduce unnecessary expenses and save more money.

3. Prioritise Saving

Accumulating wealth can be achieved by leading a simple lifestyle and making small changes in our daily routine, such as taking public transportation instead of a cab, drinking water instead of cafe coffee, and choosing a more affordable holiday option.

These minor adjustments can potentially save us thousands of dollars annually. While implementing these changes may seem challenging at first, it is important to commit to cultivating good habits gradually over time.

To prioritize saving, it is advisable to eliminate any unnecessary expenses in our lives.

4. Consider Leasing Out Your Initial Property And Renting A More Reasonably Priced Alternative

If you are thinking of investing in property, this plan could be beneficial for you.

You can rent out your newly purchased condo for $5,000 and live in a smaller, more affordable HDB flat that costs only $2,000.

This will give you a monthly income of $3,000 or an annual sum of $36,000, which can help significantly in paying off your mortgage.

On the other hand, if you invest in a private property for your personal use, you may not be able to earn any money from it.

Additionally, this move could exhaust most of your savings and increase your mortgage, leaving little cash for other investments.

Engage In A Conversation With Your Partner And Discuss The Matter At Hand

When preparing for marriage and a family, it is crucial to have a serious discussion with your partner regarding your finances.

It is important to consider having two incomes in the household, as this can help alleviate financial stress.

To manage both work and parental responsibilities, you may want to seek assistance from retired parents or in-laws who are willing and able to help out.

Proper management of combined incomes can also lead to increased savings each month.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Blog Posts Buying Tips

Learn the Essentials of Renting Property in Singapore as a Foreigner

Jayson Ang – May 26, 2023 –

TLDR Renting in Singapore offers various options for foreigners, such as HDBs, Condos, and even unique properties like heritage homes....

Buying Tips Mandarin Top 5

5 Things to do When You Go For A Property Viewing In Singapore Part 2

Jayson Ang – June 8, 2023 –

5 Things to do When You Go For A Property Viewing In Singapore Part 2 Here are 5 more things...

All Buying Tips

Buying a Mega Development Condo? Here are 5 Overlooked Issues You Should Know

Jayson Ang – April 20, 2024 –

TLDR In the world of mega-developments, living in a large condo with over 700 units can bring challenges like ongoing...

All Blog Posts Buying Tips

When a Property Seller Pulls Out of the Deal : What Now?

Jayson Ang – April 2, 2023 –

TLDR When a property deal is not yet formalized, sellers can withdraw without consequences. However, once an Option to Purchase...

All Blog Posts Buying Tips

5 Key Insights to Take Away from the Latest 2022 Cooling Measures

Jayson Ang – December 8, 2022 –

TLDR Affordability of HDB Market: Government is focused on ensuring affordable public housing and may increase supply if needed. Long-term...

All Blog Posts Opinion

Where to Find the Most Affordable New Launches in 2023 – Starting at $1.31 Million

Jayson Ang – January 24, 2023 –

TLDR When looking for an affordable new launch condo in Singapore as of January 2023, consider projects like 10 Evelyn,...

Mandarin Top 5

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds

Jayson Ang – May 21, 2023 –

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds 1. The first step in remitting money to Singapore...

All Blog Posts

Singapore Property Swapper

Jayson Ang – December 7, 2022 –

Jayson Ang, also known as the Singapore Property Swapper, is a certified Propnex agent and top 1% producer who helps...

All Blog Posts Opinion

Case Study : With Income Of $180K per Annum, Which Options Should I Choose?

Jayson Ang – February 28, 2023 –

TLDR When making property decisions in Singapore, it's crucial to consider various factors like affordability, loan-to-value ratios, and CPF requirements....

All Buying Tips Opinion

7 Essential Considerations to Keep in Mind When Assessing a Floor Plan for a New Condominium Development

Jayson Ang – March 6, 2024 –

TLDR When selecting a property unit, carefully examine the floor plan beyond aesthetics. Consider non-living spaces like ledges and void...

Buying Tips Mandarin Top 5

5 Things to Know About Singapore’s Freehold & Leasehold Properties

Jayson Ang – June 10, 2023 –

5 Things to Know About Singapore's Freehold & Leasehold Properties Here are 5 things you need to know about Singapore's...

All Buying Tips Opinion

What Factors Contribute To Singapore’s Real Estate Market Exhibiting Less Volatility Than Other Major Cities?

Jayson Ang – November 12, 2023 –

TLDR The Singaporean real estate market has remained stable due to government cooling measures. These include Additional Buyer's Stamp Duty...

Mandarin Top 5

Top 5 Seafood Restaurants in Singapore

Jayson Ang – April 3, 2024 –

Singapore, a melting pot of cultures and culinary delights, is well-known for its diverse food scene. With its strategic location...

Buying Tips Mandarin Top 5

5 Reasons Why You Should Consider Investing In Singapore Real Estate

Jayson Ang – August 1, 2023 –

TLDR Investing in Singapore real estate offers attractive tax incentives, low cost of living, high rental yields, market reliability, diversification...