Real estate and property investment remain to be one of the top 7 Best Investments for 2019, according to the market study of MoneyMax. So if you’re looking to buy a forever home or simply wanted to jump start a lucrative portfolio, it’s good to have an idea on how to finance it. That being said, what are the best ways to save up for real estate or property?
A Dedicated Savings Account
The average Filipino keeps less than 5,000 pesos in their bank accounts, according to the data of the Bangko Sentral ng Pilipinas (BSP). If you’re aiming to buy property in the future, you’ll need to do better than the established status quo. In fact, it is recommended that you have a savings account dedicated to your housing/property fund. That way, you can keep it separate from your other finances and it can accrue interest while you can add to it periodically. The important thing is that you have a fund that is steadily growing with time so you’ll have better purchasing power in the future.
Improve Your Credit Standing
If you’re planning on applying for a bank loan in your future, you need to start establishing a good record with a bank today. You can improve your financial record by getting a credit card and opening up savings accounts with a bank. If you’re a first-timer, take your time to look over which credit cards requirements you meet. Ideally, it shouldn’t make you jump through hoops and provide you with decent interest rates. That way, you’ll be comfortable using it to build your credit standing.
Zealously Track Your Finances
Around 42% of Filipinos finances are lost on unaccounted spending, according to the findings of Visa. When asked, Filipinos say they go to non-essentials like snacks or impulse buying. If you are serious about making real estate investments in your future, you need to start tracking your finances with zeal. You can utilize budgeting apps like Monefy, Mint, and Money Manager to track your expenses on the go. If you are able, set aside around ten to twenty minutes out of your day to look over your finances to see what you’ll need to work on. That way, you can keep a stern eye on the flow of your money and direct it where it should actually go.
Your mindset plays a critical role in obtaining your real estate or property goal. With all the talk of finances, budgeting, and planning, it is understandable if you feel overwhelmed. This is why it is important that you give yourself constant reminders of your goal. Give yourself a visual reminder of what all this effort is for. Pinup pictures of your dream property so you can remind yourself that you do have a goal and that all of this will be worth it.
Saving money for real estate or property doesn’t have to feel like pulling teeth. Knowing your options can help you decide on what your plans are and what type of properties you can aim for. Take your time and consider the pros and cons carefully so you can find the best sort of fit for your plans.