Do These 4 Things To Own a House at a Young Age

As a basic necessity, a house doesn’t just work as a home but also as an investment asset for some people because the price constantly rises.

The longer you delay your house purchase, the harder it will be to afford the housing price that continues to go up yearly and the bigger the cost that needs to be prepared.

Owning a house at a young age is not an impossible task if you have planned thoroughly. We have listed 4 things that you can do if you want to own a house at an early age.

Set the House Budget

The first thing you need to do if you want to own a house at a young age is to determine the price or budget for the desired house.

By doing this, you will find it easier to set a budget for saving the down payment and for a mortgage program.

Make sure that this housing budget aligns with your current income and the possibility of income growth in the coming years.

Once you have established the desired housing budget, you can start surveying locations and specifications for the desired house.

Start Saving Up for a Down Payment

There are various payment systems you can use to own a house at a young age, and one of them is the Mortgage Program (KPR) provided by banks.

Buying a house with a mortgage doesn’t require a large upfront payment because the bank can provide funding ranging from 70% to 80% of the house’s value. Therefore, for the initial phase, you only need to prepare the Down Payment (DP).

By purchasing a house at a young age, you can have a longer loan term or tenor. Typically, banks set the age of 60-65 as the maximum age for the end of the loan period. If someone decides to take a mortgage at the age of 50, the maximum tenor provided might only be around 10-15 years. However, if the mortgage is taken at the age of 25-30, you can choose a tenor of up to 30 years.

To have the funds for the down payment, a prerequisite for a mortgage, you should start saving now. You can create a specific savings account for the down payment, so it doesn’t get mixed with other funds. Make sure you set the amount of savings to be deposited each month, for example, 30% of your monthly income. Be consistent in saving every month, and always prioritize saving whenever you receive your salary.

To be more effective, you can create a planned savings account or a fixed-term deposit account at the bank. These types of savings accounts allow customers to save regularly through automatic fund withdrawals (auto-debit) from the main savings account every month. By using this type of savings account, you will receive a higher interest rate compared to a regular savings account.

Seek for Extra Income

To be more effective and accumulate the down payment quickly, you can seek additional income to save. Additional income can be earned through freelance work or running a small business.

You can use your hobbies to freelance or start a small business.

For example, if you enjoy cooking, you can start a catering business. With the advancement of technology, you can easily market your services through social media.

If you have hobbies and skills, you can earn additional income as a freelancer.

There are many websites available today where you can find freelance jobs, such as Fiverr, Upwork, Dribble, Sribu, Sribulancer, and others.

Spare Some Living Cost

To accumulate funds for the down payment on a house purchase, starting today, you need to live frugally. Ensure that your expenses do not exceed your income by cutting unnecessary spending.

Distinguish between needs and wants. For example, you can live without watching movies at the cinema or drinking trendy iced coffee every office break, but you cannot live by eating only once a month.

Be wise in shopping, make sure you prioritize essential items.

Don’t be tempted by discounts or promotions if the item is not something you genuinely need.

If possible, bring packed meals from home. Bringing lunch from home is usually more cost-effective than buying from restaurants or ordering food online. Additionally, homemade meals often offer better health and hygiene.

Also, make sure not to buy bottled water at the office when you can bring it from home or use water from the office.