For many 20- and 30-somethings, living solo in garage apartments or granny flats is a sign of success. It takes hard work to earn a comfortable living that aligns with your lifestyle and financial goals. It takes even more hard work and financial discipline to save for a house. Interest rates fluctuate with the housing market, and current rates may be attractive enough to tempt you into buying a house. Before you decide it’s time to establish a permanent primary residence, think about what you might have to sacrifice along the way. Is saving for a house more important than saving for a holiday?
Save money by buying what’s cheap.
Saving up enough money to come up with the down payment on a home and building up an attractive credit score to qualify for competitive mortgage rates can take years. Homeownership is a dream for many, but when you think about how much of your prime years you dedicate to earning enough income to afford a house, it’s exhausting. You don’t have to choose between saving for a house and saving for a holiday. Save money by buying what’s cheap at the time.
Nowadays the savvy traveler can take advantage of of a holiday package to jet-set overseas. For less than one month’s rent, you can easily find a deal that includes flights and accommodation for a week. Extravagance has a different meaning for each generation. Parents may see spending money on a holiday as reckless, while kids may see buying a house as a grandiose purchase.
Also, keep in mind wages have risen considerably over the years, which makes saving for a holiday practical. With the right spending discipline, setting aside discretionary income towards a holiday is feasible.
Before you start saving for a house, think about the true cost of homeownership. Lenders will qualify you as a home loan borrower based on your credit score. The loan amount, annual percentage rate, and life of the loan all factor into your monthly payment. The average rate for mortgage loans depends on the type of loan you shop for.
Lenders mortgage insurance is usually added to your home loan amount. These insurance premiums vary depending on the loan amount, the deposit amount, and any additional fees.
iSelect.com.au helps renters get an idea of home loan rates and see where current mortgage rates stand. Learn how an adjustable-rate mortgage works, see if you can participate in a direct loan program, and find ways to get a lower interest rate. You will need to get rate loan pre-approval to know the maximum property value you can afford.
Watching the average rate of mortgage loans fluctuate in order to secure the lowest rates is fun for some, but then again, so is watching for flights to go on sale. While they’re both good options, these days saving for a holiday is much easier. To help work towards buying a house, compare competitive home loan rates at iSelect
One House vs. Several Holidays
Coming up with the average 20 percent deposit of the overall property value takes several years, plus qualifying for a home loan. Then there is the reality that you will be making a monthly payment for possibly the rest of your life. When it comes to deciding what to save your money towards, ask yourself whether you live to work, or work to live?
Taking time off from work is good for you. Traveling gives you a broader perspective on life, teaches you new life skills, and challenges you to learn more about yourself and grow as a person. How impressive would it be to recount the story of how you backpacked in Brazil and learned Portuguêse on the road? Take full advantage of holiday leave, long weekends, and paid time off. You only get one life and one chance to be young.
The Mill Casino Hotel & RV Park is a site for shore eyes. Visitors can enjoy beachfront adventures by day and casino entertainment by night. Three picturesque state parks are linked by an extensive trail system that allows you to get lost in natural beauty. Travelers can see all available package deals offering discounts on accommodation online. Head over to The Mill Casino Hotel & RV Park and enjoy a relaxing weekend holiday in a natural setting.
No matter what your financial goals are for the future, what matters most is that you save for the things that are important to you.
1 comment
I think this is a kind of generation gap. While our parents or grandparents tend to save during their whole lives, we need quick dopamine, that’t why we spend money very easily. 20 or 30-years old can not save for more than some months.
One more reason we don’t usually save for a house is because we don’t know where we are gonna live in some years. For millennials, it’s not that important to stay in one city for life, they want to travel.