Buying a home is an effective way to build equity with money that you would otherwise spend on rent. For many young adults, the prospect of buying a home may seem daunting because of the down payment. This guide offers a few tips for saving so that you can buy property.

3 Budgeting Tips to Help You Save & Buy Property

1. Set a Goal

Saving may feel difficult and aimless if you don’t have a specific number in mind. Meet with a mortgage lender to help you determine how big of a loan you qualify for based on your income and credit score. Once you know what you can afford, set 10 or 20% of that amount as your saving goal. While 10% is the general down payment minimum, the more you put down, the less you’ll pay in interest.

2. Find a Reasonable Time Frame

Now that you know how much to save, you may feel overwhelmed by that number. The easiest way to save to buy property is in steady increments. Break the down payment into monthly or even weekly amounts. As you watch the savings steadily grow, you’ll feel proud of your accomplishments and inspired to save more.

3. Cut Excess Spending

The easiest way to consistently put money toward your goal is by cutting small, unnecessary expenditures. Check your monthly spending for small purchases that you don’t need, such as streaming services, premium upgrades without adds, and subscription boxes. You can also start bringing home lunch to work and making coffee instead of buying a cup every day.

When you’re ready to buy property, contact the knowledgeable team at SC Realty, LLC, in Honolulu, HI. From condos to single-family homes, these professionals will help you find the perfect house in your desired location. They’ll work within your price range so that you can stay on budget, while getting all of the must-haves on your list. View their current listings online, or call (808) 591-6277 to schedule an appointment with an agent.