You must do this to fix the mortgage! – Loans
Getting into the housing market may seem like an impossibility to many – but it works. With the right savings method, a well thought-out budget and a clear target, the cash contribution and the mortgage are closer than you think.
“It is important to be consistent and to stay focused on the goal,” says Emma Persson, Housing Economist at SBAB. Declining square meter prices, stricter amortization requirements and tough loan calculations mean that many never even consider the possibility of taking out a home loan.
It’s worth the effort in the end
A saving of USD 5,825 per month would be required. “Then you have to be prepared to bet. You may not be able to make a trip abroad every year and you may have to stay with others for a period to cut costs. The important thing is to be consistent in their savings, ”says Emma Persson. Making a budget and calculating what the daily expenses cost in a year often facilitates saving. (See example below article.) “If you eat breakfast in town twice a week, it will be many thousands of pounds in a year,” says Emma Persson.
Avoid major risks As far as savings are concerned, Emma Persson thinks that an interest-bearing savings account is the best option. “If you know that you will spend the money in the relatively near future, I recommend it. If you have the money in the stock market, you may be unlucky when you buy, that is an excessive risk, I think, ”she says. However, it may be well-invested time to periodically review what savings rates the various banks offer. “It can change over time. There are very good comparison services today, so it doesn’t take long, ”she says. While saving money for your cash efforts, it is important to look at the areas you can imagine living in.
Some have too high demands on their first accommodation
Says Emma Persson. “Proximity to town, size and condition are factors that affect the price most and which you can labor with if you want to come down in price. Maybe you are handy and can renovate a renovation object yourself? ”Says Emma Persson. Widening the Views She also recommends first-time buyers to turn their eyes a little outside metropolitan areas. “Outside of Stockholm, for example, there are several nearby municipalities where prices are not as high per square meter, but where it can still be a good investment to buy. As prices rise inside the city, they also rise in the immediate area, ”says Emma Persson.
It may also be worth visiting the websites of different municipalities to see what is going on in the area. Perhaps large investments are being made that may in the long run raise the price level of housing? Never give up ”In Barkarbystaden in Järfälla municipality, for example, one should build a subway. Then it might be smart to buy a home there now maybe? Many municipalities make outline plans that they put on their website, so just go in and look, ”she says. Last but not least is the key to the first home purchase not to give up. “Once you get a foot in the market, you have good conditions to make a good housing career. But it is important to be consistent and to keep in mind the long-term goal. It is worth the reward in the end, ”says Emma Persson. Emma’s best tips – How to save : – Sell the car. A 15 year old car costs about USD 2 750 / month (depreciation not included). You can calculate yourself on the Motormännen’s website. By cycling or walking or going public, you can save a lot of money per month. – Make a budget on the Consumer Agency’s website and see how you can cut down on expenses to find savings.
Food is a big expense for many, by making big food and cooking more vegetarian you can cut down on this expense item. – Bring your lunch box to the job / university. If a lunch costs USD 85 and you eat out five days a week for the 48 weeks you work per year, it costs USD 20 400. If you cook at home and it costs about USD 25 per serving, you can thus save USD 14,400 per year. – Try to save at least 10% of your income each month. If you earn USD 25,000 per month and receive about USD 18,800, it will be USD 1880 per month.