Home loan interest rates are low, developers are offering fantastic deals, and the worst of property market is believed over already said by many property gurus. Perhaps now is the right timing to add real estate into our portfolio.
But the common feedback I always received from friends is: No money to buy a property! How do you overcome this problem?
My Own Ways of Step by Step Save Down Payment Money for Buying My First House:
Step 1: Check your credit for a home loan from bank (How much can you borrow?)
Step 2: Determine the affordable figure to be paid as home loan monthly installment based on your cash flow status (How much is your budget?)
Step 3: Start the savings plan by monitoring your daily cash flow closely. Record your daily expenses into a cash flow spreadsheet for better monitoring. Maximize your Savings, Improve your debt management. (Do you have your own cash flow spreadsheet?)
Step 4: Target for first savings of RM5,000 and save the money into best interest rates Fixed Deposit (FD) 1 month tenure. (What is your action plan?)
- Reason 1: Why RM5,000? That is the minimum amount for FD account with 1 month tenure.
- Reason 2: Why one month tenure? If anything happen and affect your income, you may still cash out the FD after 1 month without penalty charges.
- Reason 3: Why fixed deposit? For me, that is the best way to ensure us not to spend the money.
Step 5: Target for second savings of RM5,000 and save the money into FD one month tenure too.
Step 6: Repeating Step 4 & 5 until sufficient fund for the down payment. (How much is the minimum down payment?)
Note: Withdrawal money from EPF account for buying your first house is subjective to individual investment strategy. However, it is a good option to be considered for first time home buyer if they have insufficient down payment money from their savings account.
How do you save the down payment for your first property? Your sharing is much appreciated by our readers here.
{ 1 comment… read it below or add one }
My way I just put RM 1k for 2 months. This way you do not need to withdraw an entire 5k if any emergency happens. You will need to keep additional emergency funds for loan repayment later too.