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When is the best time… the best time?

Lamudi PH gives tips on how you can afford your first home

Home-buying is one of the biggest purchases one can make in their lifetime. It pays to be ready before sealing that dream home deal. But the big question is: when is the best time to buy a home?

People often look at the current market standing, the trends in real estate, or the prevailing interest rates set by the Bangko Sentral ng Pilipinas (BSP) before deciding to buy. But in this case, online real estate expert Lamudi Philippines says otherwise. It is  wise to study the market and research for the best real estate deals, but it is way smarter to evaluate yourself and your financial standing first before signing the deed of sale.

Here are is a  useful personal finance  checklist you can follow.

EYES ON THE PRIZE. Financial freedom gets you ready  to finally get your dream home. 

Track your net worth

The capacity to buy a house depends on an individual’s circumstance and goals, and the best way to begin is by identifying your financial capability.  Track your net worth. Simply defined, your net worth is the difference between your assets and debts. The bigger the difference, the nearer you are to your monetary goals. Regularly monitor your financial standing to ensure that you are on the right track.

Settle your debts

If you have a mountain of loans, try settling all the smaller amounts as quickly as possible. It might also be best to cover first the loans with the highest interest rates to make sure that they won’t keep earning interests, which can be  hefty if you add them together.

Make a personal fiscal calendar

To veer away from late-payment penalty fees and big interest rates, keeping a journal or a calendar that lists all your money-related matters will help a great deal. This will help you not miss any upcoming payment or expense and smoothly plan your finances ahead.

Refrain from using credit cards

Impulse buying is empowered by that  plastic card inside your wallet. If you can try going all cash with your daily necessities and expenses, this will prevent you from spending unnecessarily.

Set a budget and strictly follow its

To successfully abide by this rule, discipline is key. After receiving your paycheck, quickly set aside a portion for savings and bills. Make use of what will remain and divide it for the next couple of days until the next payday.

Save and splurge

Allot a certain amount of your funds to lifestyle spending and firmly abide by it. This includes movies, restaurants, spas, expensive coffee, and all other non-basic necessities. This way you will not feel deprived.

Be content

This is the mantra that you should say to yourself every time you dreamily eye a new gadget, or an expensive pair of shoes that you don’t really need. 

Own a home

A good motivation better drives you to follow good money habits. Even if buying a home is your ultimate goal, you can also set smaller targets or short-term goals like taking a trip abroad. Once you reach these “mini goals”, you will have a daily reminder that all your dreams can be achieved, including your ultimate goal of settling into your own abode.

Topics: Home-buying , Lamudi Philippines

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