Setting Your Budget
It is really frustrating when you have set your heart in a place and
suddenly you find out that it's beyond your price limit. If you are a
first home buyer, you must consider other factors that may affect your
budget, in the end you will realise it's not just the purchase price you
must find. You need to go over your budget again and prepare enough
funds for the stamp duty, processing fees, consultants fees, etc.
You will need to prepare a budget before you know how much you can
devote for the house that you really wanted. Try to be accurate and
honest. List all your daily, weekly and monthly expenses and try to work
out exactly how much you spend each day. Make sure to include all your
bills, such as credit cards, electricity, telephone and so on. Also, you
have to set aside enough amount of money for entertainment, clothes and
holidays. If you are determined to buy a house, you may have to become
more frugal but of course you still have to live.
Prioritise your needs such as food and transport, they are more
important and should be on top of everything. When computing your budget
try to list the other sources you have, work out what this bring to you
each week. Subtract you weekly non-rent expenses from this and you will
know how much you have left.
You may try to get a loan but anticipate some circumstances to change
over the next few years, such as having a child, make sure you take the
effect of this into account. Remember you are the one who will decide in
the end so you may choose not to borrow up to your limit.
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