The rent cycle can easily capture any first time homeowner. Most people cannot buy a home immediately so they begin by renting. Renting a home is not the problem, the problem begins when that is the only way you have a home. Constantly renting puts the renter at the mercy of landlords and the housing industry. Owning a home is not the easiest thing to do financially, but if it is achieved it is satisfying and fulfilling.
Here are three tips to help you break out of the perpetual rent cycle before you get there or to get you out if you are in it.
Save Up for the Deposit
Your first home doesn’t have to be a million dollar building. You can start small. You should keep in mind that owning your home is the objective. Find properties that you would like to own and figure out what a deposit would cost you. Save towards this cost. Once you are able to save up and reach the initial deposit you can get other financing options to help you pay for it all at once. You could discuss a payment plan with the seller to give you space to pay for the property. Before you can do any of this you would need to save up for your deposit and from there it would make more sense.
Pay Less Rent
Pay as little rent as you can. If you can comfortably afford and live in a smaller cheaper space that should be your first option. When you do this you are able to save up for the deposit on a home you actually want. If you are already in a place where you are paying alot for rent, you can get a roommate. This arrangement would reduce the amount you have to pay and increase the amount you get to save towards the home you want. It may be a tight squeeze in the beginning but being a homeowner is worth the small space, little rent and higher savings.
Live on a Budget
Be very conscious of your income and expenditure. There may be a few essentials that you literally cannot live without and those should not be affected. On the other hand there are some ‘needs’ that can be deemed as luxuries. For example, instead of ordering food from your favorite restaurant or ordering a ride everywhere, you could cook at home or take public transportation. These may be uncomfortable at the time but it’s worth it when you are able to save up for the initial payment of a home you actually want.
Owning a home is not an impossible task. With proper planning, financing options; friends, family or financial institutions, discipline and a vision you will be able to break out of the rent cycle. It may not happen immediately but owning your own home at the end of it all will be rewarding.
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