Many people rent apartments or studios because it is a more affordable housing option, especially for young adults. In 2023, the real estate rental market grew from last year’s $2,376 billion to $2,561.84 billion. However, most people are still working toward buying their own dream home.
If you still cannot afford to buy your own house, this short guide is for you. After reading, you will get crucial tips that can help you get the money you need for your dream home.
1. Apply for Jobs Online
One way to get the money you need for your dream home is by augmenting your salary. Try applying for jobs online through Fiverr, Upwork, and Freelancer.com. These freelancing sites offer opportunities for people to do a variety of positions, including the following:
If you are fluent in a second language, you can offer translation services at Gengo. If you are knowledgeable in web design, you can even drum up business by making a translation site of your own.
Another way to make money online is by using sites like UserTesting.com, where you can get paid for testing websites. You only have to share your thoughts on specific websites and applications.
However, you must complete a short test before you can start working. Moreover, the pay you will receive depends on the test type.
Those with a penchant for embroidery, woodworking, jewelry-making, or pottery can sell their products on Etsy. This site allows artisans to market and sell their art, home goods, and other creative knickknacks.
You can save money for your dream home by working full-time or part-time online. Some gigs may not pay well, but the money you will get can still increase your savings.
2. Know How Much You Need To Save
After choosing where you want to live, you will know how much you need to save. Having a budget can make creating a savings plan with a deadline easy.
The down payment can be the priciest fee you must save for when buying a new house. Remember that most mortgage lenders recommend having at least 20 percent of the total price of your dream home as a down payment. This amount can help you save on private mortgage insurance (PMI) monthly costs, which can help you save more in the long run.
Another option you have is to look for government financing. The following are examples of housing support you can get from the government:
The Department of Agriculture (USDA) mortgages: The USDA offers loans to low and medium-income earners who want to buy homes in rural areas at zero down payment rates.
Federal Housing Administration (FHA) loans: FHA loans require borrowers to pay a 3.5 percent down payment and have a credit score of at least 580. You may also get this loan if you have a 500 credit score, but you must pay a 10 percent down payment.
Veterans Affairs (VA) loans: US citizens associated with the military can apply for VA loans for housing support with no down payment.
3. Minimize Expenses
This tip may seem obvious, but it is still worth mentioning. Failing to minimize expenses could delay buying your dream home because you might be tempted to use your savings during emergencies.
Remember that downsizing and minimizing expenses can be the fastest way to save for a significant purchase. Evaluate your finances and check for recurring subscriptions, assets, or fees you can do without. You can channel the savings to the account you reserve for your new home.
4. Work With Professional Real Estate Agents
Hiring a competent real estate agent can be worth it because they can help you find your dream home based on the specifications and budget that you provide. Moreover, they can help with the administrative tasks associated with purchasing a house, such as filing the necessary paperwork with government agencies and banks.
Working with an agent gives you peace of mind that your financial investment will be legitimate. However, the agent may charge service fees, so ensure you have the budget for their services. You should also specify the scope of work and corresponding payment to manage expectations from the partnership.
5. Do Your Research
Even with the help of a professional real estate agent, you should still do thorough research on your own. This strategy involves the following:
- Knowing the current market trends when it comes to buying homes and other real estate properties
- Looking for local real estate websites and listings
- Ask for advice from people who you know with experience in buying property
Remember that you can only make informed decisions with the correct information. So don’t be afraid to ask questions to keep yourself informed.
Take all the time you need to prepare before making a big purchase, especially as investing in a home requires significant thought and preparation.