How savings can help tremendously on achieving your

How to Buy or Save for Your Dream
House

 

The
latest inflation in Malaysia has had a massive impact on households across the
country, especially when you have been planning to buy a house of your dream at
this tough time. While all of us are feeling the pain from rising prices and stagnant
wages, ideas on savings can help tremendously on achieving your goals in life
relatively faster.  

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So
now, you will need to take things into your own hands, and make sure you are
putting enough money aside. In this article, we will provide you practical tips
on how to help you buy or save for your dream house, and embrace your efforts
towards becoming a homeowner.

 

Choose the Right Housing Loan

For
most people buying a house, it is considered one of the largest purchases in
their life. Therefore, picking a home loan that offers a best interest rate is
very important to pay off your mortgage. Low interest may not seem helpful for
a one-year loan, but can definitely make a HUGE difference for a mortgage that
is over 20 years.

 

There
are quite a number of bank loans available in Malaysia, with a current market
interest rate between 4.2% and 4.4%. Spend time to do some research and you may
find a package with a lower interest. Here is a comparison among the best home loans in
Malaysia. A home loan
calculator
can help you to figure out your monthly repayment for the mortgage as well.

 

Alternatively,
you can tap into special scheme such as HouzKEY. HouzKEY is
offered by Maybank and is open to the public. Three months rental deposit is
all you need to have, and then you can move into your dream house in no time.

 

Save on Daily Activities

While
they’re totally practical, many of our recommendations for saving on daily
activities require cutting back on things you enjoy—well, not everything, but
some of them—like watching ASTRO channels, eating out, daily coffee at
Starbucks, and buying cigarettes.

 

Compare
this yourself: switching your RM10 meal at a restaurant for a RM4 homemade lunchbox; a
RM200 monthly ASTRO for a less than RM50 monthly package of Netflix or iFlix; a RM12
Starbucks Americano for a RM2 brewed
dark coffee from home. And quit smoking! A pack of cigarette costs RM18-23,
and if you don’t smoke, you pay NOTHING. Did you get the idea?

 

A
few hundred or even a thousand ringgit here and there can make a big
difference, and you will have enough money to put down for that house deposit
sooner than you thought. When you can get as much joy out of saving as you do
out of spending, you’ll be well on your way to home ownership.

 

Get Assistance from Government
Schemes

Combine
frugal habits with a smart long-term mortgage strategy and you’re almost there.
Here’s more good news: there are some schemes from the government that can help
you out, if you are purchasing your home for the first time.

 

These
government schemes are PR1MA, Rumah Mesra Rakyat 1Malaysia (RMR1M), MYHOME, My First Home (SRP), Youth
Housing,
Rumah
SelangorKu,
My Deposit
2018,
etc.

 

 

Starting
early, planning and saving whatever you can for your dream house, puts you in a
better position down the road compared with someone who waits. If you need
financial consultation and assistance, Direct Lending is here to
help you out!