How to stay within your budget when buying a home


By Rosalind Sabari

If you are worried about your finances you are either a known spend-thrift or you’re a thirty something year old experiencing what past scholars dubbed as a ‘mid-life crisis’. This is that that point in life where all hell breaks loose for 80% of people. Having to pay off school fees and put food on the table at the same time can be a daunting task to say the least. The needs are endless and each month something new pops up and demands your immediate financial attention.

How then can you squeeze a new home into the equation and get to the other side unscathed? Here are a few ways of doing that.

1. SAVE FOR A DEPOSIT

The mistake many potential home owners make is waiting till their dream home pops up on the market for them to start raiding their children’s college fund kitty that they swore to never touch during their honey moon.

From the moment you get that all divine insight from above that it’s about time you settled you should immediately started putting some money aside.

Do this consistently for a couple of years prior and you might be surprised to find out that you’re your young family is able to pay off 70% of the new house if not all of it.

   

 

2. LIVE WITHIN YOUR MEANS

I know it’s fulfilling to bring up your six bedroom house in conversations when out in public with friends but picture the polar effect taking place on the other side.

How long will it take you to pay off that 80 million KES home? 10 years? 20? 30? Who knows, you might even die in debt and your kids will have nothing to inherit from you other than debt!

Always aim to live within you means and you’ll never go wrong.

In due time you’ll upgrade, just be patient and stay grinding.

   

 

 

 

3. CHECK THE MARKET BEFORE YOU COMMIT

Don’t be the fool that bought a 20 million home in a neighborhood where houses go for 10 million max.

Your neighbors would surely have a good go at you anytime they need to illustrate the very embodiment of stupidity to their children.

It doesn’t matter what offer they gave you, take a day or two off and find out how much homes are going for in the neighborhood and its immediate environs.

You’ll either come to discover that you were being ripped off or that you’ve found yourself a good deal. This is the point where I have to invoke the saying, “knowledge is power!”

   

 

4. GET PRE-APPROVED

Most agents will not even waste time dealing with a potential buyer if they don’t have the cash or a document proving that they have been pre-approved by their lender. They’ll need physical proof that you have the ability to buy the home.

And you’ll also need to know that you can afford it before signing paper work.

So be sure to get your affairs in order with your local bank and avoid last minute disasters.

 

   

 

Thank you for taking the time to read through my blog. I hope that it will help you to buy a home well within your comforts in future. To read more of my blogs, click here, or to send me a follow up question on the local market in Kenya, click here.