Author: twcadmin

How to Save for Your First Home Loan Deposit

 

If you want to get yourself a little slice of the real estate market and have a place you can really call home, a place you can decorate as and when you see fit, then you’ll have to start saving. There are some grants you can get to help, but you’ll need a lot of money to serve as your 10% deposit. Here are some tips on how to save for your first home loan deposit.

 

  1. Save 10% of your Paycheck

This is one of the oldest tips in the book, but it’s stood the test of time because it works. Adopt a mentality of paying yourself before paying anyone else. A good way to help with this is to open a separate savings account with a different bank so that you have more trouble accessing the money. Then take 10% of each paycheck and put it through into this new account. You may need to miss out on a few luxuries but you’ll save a lot of money and it will all be worth it.

 

  1. Sell your Unwanted Stuff Through eBay

Sites like eBay offer the perfect place to get rid of all your unwanted things and get your hands on some money. Whether you’re selling your old curtains, the music you don’t listen to, or your old clothes, you can generate a lot of money from eBay in a short amount of time. How much you make depends on what you sell of course, but you could be looking at hundreds, if not thousands of dollars.

 

  1. Pay Off Your Debts

Paying your debts isn’t a savings tip in the classic sense of the word, but it does help you save money because there’s no interest payments. There are two reasons you should pay off your debts; it increases how much money you are able to borrow, and it gives you more money to pay off your mortgage payments. Start budgeting now to get rid of your personal loans and credit card debts before getting a mortgage that leaves you with hundreds of thousands to pay off.

 

  1. Get Rid of Luxuries

While it’s not fun to tighten the purse strings, it is an effective way to save money. Get rid of the luxuries, or downgrade them when you can, and put the extra money in your savings. You don’t need to get rid of absolutely everything though. Slowly get rid of one luxury a month and pocket those savings. By the end of a year you could have saved thousands.

 

  1. Get a Part Time Job

If you’re really serious about saving for a home deposit and you can’t stretch your budget any further, then you may want to consider part time work. Working a few evenings a week could grab you a lot of extra money in your account. Babysitting, tutoring students, teaching English, or doing some freelance work are solid examples of what you could do.

 

There’s never been a better time to take out a mortgage thanks to all the great rates on offer. Be sure to compare rates from different lenders before making a choice.

 

GENERATING INCOME THROUGH REAL ESTATE AND PROPERTY DEVELOPMENT

When you think about it, you realize the great amount of work and the obvious risk that is involved in real estate and property development. Additionally, Estates or homes cost a lot of money to purchase and develop, and can sometimes be difficult to sell. Due to the high expenses and challenging sales, and also because the return on investment takes some time, this explains the risk in the ownership and development.

Why then do you choose this as an occupation?  One thing to have in mind is that most real estate development projects are financed with debt leverage, to be precise, with borrowed funds, the earnings of which are assumed to earn a higher rate of return than the cost of interest. Using debt leverage rather than personal investment cuts the risk tremendously.

And obviously, for most, the real question is how one gets wealthy from home developments if the work is hard and the risk is so high.

The answer, of course, is complicated, and indeed, nothing is guaranteed. Many of the developers have lost as much as they have also gained, and the market fluctuates significantly. However, those who are smart about their developments and investment are the successful ones. After all, the whole point of real estate and property development is much like stock trading as you want to sell the product for more than you did pay for it.

Having a proper understanding of what makes real estate valued is essential. Make a right decision as to the location, upgrades, and the likes, and you are sure to make money. Make wrong decisions, and you sure will lose money.

To get wealthy then, it pays to do your homework as they say. Purchasing buildings or land on the low end is good, but then just because something is affordable doesn’t mean it’s actually going to turn a profit once developed. There may be a reason why certain buildings are up for sale, or why certain areas are undeveloped.

When people start to invest in commercial real estate, they start small. They may secure a single family house, a duplex or maybe even a small apartment building. To keep the commercial investment game going; you have to keep moving property. Actually, if you do not grow, you will eventually discover that your bank can no longer assist you because you have maxed out your investment portfolio. Taking too long to grow can be a death sentence in the game.

Getting wealthy from real estate and property development requires some effort and skill to stay ahead of the game, and the ability to organize all the needed steps.

However, with a bit of work, it can pay off. Real estate development has long proven to be one of the most lucrative areas of business that’s around (if you have the patience to play the game right.)