5 Planning and Budgeting Tips for Your Dream Home Build

 Many people nurture the dream of having a home to call their own. There’s nothing quite like a place where you can completely relax and attend to your loved ones, perfectly designed to accommodate your needs and lifestyle. Real estate also remains a great investment across generations, and your dream home can one day become a valuable asset that can be passed down to your children or relatives.

However, buying your dream home is a big financial decision requiring planning and budgeting beforehand. This is an investment that you’ll want to save up seriously for, from the initial land acquisition to the stage in which you roll out your home’s floor plan. Knowing that there are some long-term saving tips that will soon allow your hard work to translate into the home you’ve always wished for:

1) Review Your Current Financial Situation

For most people, buying a house isn’t a one-time expense. Many need to build up years of savings just to afford the down payment, while some inevitably have to take out loans to afford them. Different methods of financing a home can suit different people depending on their income, so it’s up to you to determine how best to fund your future dream home.

To that end, your first step should be to undergo an in-depth review of your current financial situation. Do you have the savings to fund a down payment? Can your income comfortably support paying a monthly mortgage? What will constitute your monthly expenses after you finally become a homeowner? Having a clear view of your income and expenses will help you determine whether you’re financially capable of buying a home at the moment or if you still need time to build up your savings.

If you’re an aspiring homeowner based in the Philippines, you can start saving up for your home with Maya Savings, which allows you to enjoy a base rate of 3.5% interest p.a. that you can still boost up to 15% by simply using your Maya wallet when paying for your day-to-day expenses. A high-interest savings account like this one will not only help you save; it will also allow you to earn more substantially on your savings as you finance your future home.

2) Start Saving Up for the Down Payment

Once you’ve determined that you’re financially ready to buy and plan your home, it will be time to start saving up for a down payment. Remember that as far as down payments go, a smaller amount doesn’t always mean getting a better deal. Aim to put down an amount that’s higher than the minimum so that your monthly mortgage payments will be much more manageable.

If you’re still saving up to make a higher down payment, then try out personal finance solutions like Maya Personal Goals or Time Deposit Plus. Maya Personal Goals will allow you to set up to five sub-accounts that all stand for specific financial goals, and each one will have a designated due date and goal amount. From your Maya Savings account, label a goal “house down payment” and start allotting money from your main account to that sub-account. Your personal goal can earn 4% interest p.a. monthly, thus giving your savings for your home an extra boost.

Meanwhile, opening a Maya Time Deposit Plus account will allow you to benefit from high interest rates for your savings—up to 5.75% interest p.a. monthly if you reach your target amount and date. You can also add to your initial deposit after the term starts and thus earn a bigger amount when the time deposit matures. Simply set your savings term, and then allow the money for your home down payment to keep accruing interest.

3) Cut Back on Unnecessary Expenses

To support your goal of buying a house, over the long term, you should implement some lifestyle changes to get rid of unnecessary expenses. This could mean dialing back first on expensive holidays and instead putting the money you could’ve spent into your account for your dream home savings.

See if there are recurring expenses you can lower as well. For example, perhaps there are more affordable alternatives to the usual brands you buy. If quality and effectiveness won’t be compromised, then consider making the switch to add to your savings. Given that you’ll be spending on your dream home long after you’ve acquired it, every little peso put toward the future counts.

4) Look for Ways to Increase Your Income

If it’s viable, you should also look for ways to increase your income so that it won’t take you too long to buy your dream home and everything else that comes with it. This will allow you to be in a better financial position to support the ongoing expenses and make them less heavy on your wallet.

Try out part-time or freelance work to help add to your earnings, or perhaps explore opening a home business and offering your products or services to a certain market. You can also apply for a loan to ease up your cash flow, as long as it won’t be an extra financial burden to make the repayments. 

5) Visit Open Houses

Lastly, so that you can visualize the dream home you want to save up for, consider attending an open house event soon. Open houses are properties that are open for public viewing, essentially allowing potential buyers like you to window shop for homes.

Your attendance at an open house event may give you more ideas on the look and build you may want your future home to have. During the event, you may also get the opportunity to talk to real estate agents regarding prices and financing options. Keep an open mind about what form your dream home could take, and you may find it easier to plan the particulars—especially your budget and requirements.

In a long time it could take between your decision to build your dream home and your first time to step through the doors, you may find it both scary and difficult to maintain your financial discipline. But tips like these should give your plan some structure and make it easier to focus on the bigger goal of living your dream life in your own place.