It can be challenging to save up for your dream home if you’re on a single income. But that doesn’t mean that it is not possible. It just requires more of your determination and discipline, which are essential to saving resources. Here are some practical tips that you can use when you’re planning to buy a home with a single income.
1. Have Realistic Expectations
If you’re on a single and limited income, then it is important to have realistic expectations about your home buying budget. Buying a home is a major investment. You need to be able to afford the monthly mortgage payments and use the remaining sum for other expenses.
Start by saving as much as possible, even if it is a small amount. You can also apply for a home loan with a cosigner if you have a stable income and cannot save up a lot.
2. Grab the First Home Buyer Perks
One of the first home buyer perks is an interest rate discount. This is usually in the form of refinancing your current mortgage to a lower interest rate. You can also apply for a home loan with a low-interest rate. This perk is available to both first time home buyers and folks who are purchasing a new home. However, there are some requirements that you need to meet before you’re able to get this perk.
The first home buyer perk also includes conditional rebates. These rebates are usually provided to first time home buyers who are purchasing houses that meet the government’s energy efficiency requirements. The government offers rebates to help encourage homeowners to go green, which is a good thing for the environment.
3. Be Prepared to Make Sacrifices While Saving Up
If you’re purchasing a home, then you will prioritize your needs. This means that you need to make sacrifices in order for your dream to become a reality. Keep in mind the things you would have spent on if you were still renting, like entertainment or eating out. Then, you can use the saved money to help you with your goal.
You will also need to control your spending when you’re on a single income. Avoid going shopping on impulse, as it will put a dent in your savings. Instead, plan your purchases and stick to your plan. Spending less is one of the best habits that you can develop to buy a home.
4. Ask for Help
Buying a home on a single income requires a lot of effort. You do not have to do it alone. You can ask for help from family, friends and financial institutions.
Your family can help you out by co-signing for the loan with you. They can also give you some financial support during your home buying process. They can help you emotionally and financially if you’re going through a rough time. Your family can give you the encouragement and the financial resources that you need to achieve your goal and get that home that you’ve always wanted.
5. Think About Rentvesting
Rentvesting is basically renting and investing simultaneously to help you save up for your home. It is a good option if you’re single or a young, growing family and you don’t want to spend a lot on housing because you’re saving up for your future, which is a home.
Rentvesting also works for couples who are saving up for a home. In this case, the two can decide how to spend their money, but depending on the family’s situation, the home buying spouse may need to cut back and save up for a home.
Buying a home on a single income can be a challenge. But it’s not impossible. As long as you’re willing to make sacrifices and do your best to save up, you will be able to achieve your goal.
FinanceCorp offers first home buyer finance that can help you get a home loan even if you have a single income. Let us help you achieve your homeownership dream! Contact us today to get started!