Are you looking for an affordable flat on your first job? If so, affording a flat is possible, but often it depends on a few key factors. These include your income, location, lifestyle, and financial habits. Thus, it all boils down to realistic budget planning, so that you can make your plan of buying your first flat achievable.
Mind your income and monthly budget
You can evaluate your monthly income and compare it to local rent or mortgage costs. Make sure that you are not spending more than 30% of your income for the housing cost. That said, there are also other monthly expenses that surely you would want to consider as well. Such may include transportation, food, student loans, and insurance. After all that, you may have a clearer picture of what should be left for housing.
Save for deposit and down payment
If you are renting a property, it will likely demand for a deposit and perhaps the first month’s rent upfront. On the other hand, if you are buying a house, you may need a down payment. This may typically be around 10-20% of the property’s value.
Location and the housing market
You should know that the costs for housing may vary widely depending on the location. For instance, urban centres may generally be more expensive, while you may get more affordable options in the rural areas. Therefore, you have to research the local housing markets so that you can find areas to suit your budget.
Lifestyle and financial flexibility
When you have a steady job and have opportunities for growth, it might feel comfortable to allocate a portion of your income to own a flat. However, you may have second thoughts when you are on the opposite side of the coin. Thus, renting a studio flat can be more affordable if you consider sharing it with a roommate to lower the costs and save more.
Alternative options for first time buyers
If it is your first time buying a property, you can look into government grants or schemes intended to help new homeowners like you. The best thing that you can do for now is to rent initially to allow you to save up for a down payment while you are building credit.
Types of Property That Will Suit You
You have to focus on something that will fit your current needs, particularly when looking for your first property investment. This is an ideal decision while you are still considering your potential future plans.
- Affordable size and layout
You can pick one that is manageable in size, such as a studio or one-bedroom flat. This generally costs less to buy or rent and to maintain. The layout should also be efficient as well, wherein you can maximise the space or one with good storage options.
- Low maintenance and affordability
Choose one that requires minimal maintenance, such as newer or recently renovated properties that tend to need less upkeep. At the same time, calculate your budget so that you can handle monthly payments comfortably. After all, paying up your property may increase your HDB resale price over time. Therefore, if you are buying a property that you can afford without stretching your finances, then you also have to keep saving for unexpected expenses.
