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

Discover What Else You Can Focus On Beyond PSF – Here’s How!

Jayson Ang – July 17, 2023 –

TLDR When considering real estate investments, factors like property size, location, and PSF play crucial roles in determining affordability. Smaller...

All Buying Tips

5 Reasons To Invest In UK Property In 2024 Instead Of Saving

Jayson Ang – February 8, 2024 –

TLDR Investing in UK property in 2024 offers significant advantages over saving due to the potential for long-term value growth,...

All Buying Tips

Tips for Young Adults to Begin Saving for Their Future Home

Jayson Ang – August 5, 2023 –

TLDR When aiming to purchase a home, it is crucial to gain knowledge about the buying process and track your...

All Blog Posts Buying Tips

Discover How The CPF Accrued Interest Can Impact Your Property Sale Proceeds

Jayson Ang – April 12, 2023 –

Singaporeans are renowned for being smart and savvy - especially when it comes to selling their homes, whether it's an...

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,...

All Buying Tips

How Much You Need to Earn to Afford a Condo 2023

Jayson Ang – October 30, 2023 –

TLDR When considering investing in a private property in Singapore, it's important to understand your borrowing capacity. Financial experts recommend...

All Blog Posts Opinion

Unveiling the Truth: Why Freehold is Not Always the Optimal Choice for Property Investment

Jayson Ang – January 4, 2023 –

TLDR When it comes to investing in real estate in Singapore, traditional beliefs may not always hold true in today's...

All Blog Posts Buying Tips

What Happens To Your Housing Loan Once You Sell Your House?

Jayson Ang – July 5, 2023 –

TLDR When selling your home in Singapore, ensure you pay off your outstanding home loan, refund any CPF monies used,...

Mandarin Top 5

The Psychology of Property Investing: 5 Reasons Why Singaporeans Love Real Estate

Jayson Ang – May 4, 2024 –

Real estate investing has always been a popular way to grow wealth and secure financial stability. In Singapore, the love...

Mandarin Top 5

The 5 Most Popular Types of Properties to Buy in Singapore

Jayson Ang – May 19, 2023 –

The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...

All Blog Posts Buying Tips

What Hidden Costs Are There When Selling Your House?

Jayson Ang – July 7, 2023 –

TLDR When selling your house, be prepared to cover expenses such as outstanding home loans, legal fees, property agent commissions,...

All Buying Tips Opinion

Decoding the HDB Classification: The New Prime, Plus & Standard – What It Means for Singaporeans

Jayson Ang – December 26, 2023 –

TLDR The National Day Rally 2023 introduced a new classification for HDB flats, replacing the old 'mature versus non-mature estates'...

Mandarin Top 5

Top 5 Instagram-Worthy Spots in Singapore

Jayson Ang – February 21, 2024 –

Singapore, a beautiful city-state known for its stunning architecture, lush greenery, and vibrant culture, is a photographer's paradise. The island...