Shelter is every human's basic need. A physiological need. In Malaysia, the homeless population is getting larger especially in a city like Kuala Lumpur. Due to the Covid-19 pandemic, more people loses their jobs. They have no money for food, let alone rent. Without regular income home owners are at risk of foreclosures.
10 years from now, if another global disaster is to happen will we be more financially prepared? The younger generation still studying in colleges and universities should start to seriously think about their future. How can you prepare and protect yourselves if another economic meltdown happens?
One of the ways is to start saving early as soon as you start to earn an income and invest in a home. But don't buy a home just because you need a home so you won't be homeless in the event of another disaster. You need to plan.
Yes, preparation is key! A lot of young people think owning a home is near impossible. I disagree. With proper planning and guidance, I have helped millennials succeed in preparing to buy their first home. As a result, they have successfully achieved their goal in owning their very own first home!
I have put together a 3-part series with tips on owning the very first home. It may be intimidating, only if you are unprepared! Let’s go through some of the steps so you will have an idea how to prepare to buy own your very first home!
Preparing to buy your first home.
- Set Home Buying Goal (Why)
- Are you buying for your own stay?
- Will you be staying with your family?
- Do you want to buy it as an investment for the future?
Determine what sort of home suits your purpose because this will help you to have clarity. It will be easier for you find the right property that fits your purpose.
Determine Your Budget
- What is the amount you can afford to pay monthly
- Loan instalment
- Maintenance & Utilities
- Insurance
This step helps you map out the expected costs including the additional costs which many first time home buyers miss. This will also help to map out a savings plan.
Start Saving Early
- Save the amount required
- Form a saving habit
- Use for down payment
Now that you have the expected cost, it is time to save! Have a saving plan that you are able to follow and maintain until you reach your goals.
Stay tuned for Part 2: The Buying Process, where I will share what to look out for and common mistakes by first time home buyers.
