Budget Guide: Saving Up For Your Dream House

Buying a house is one of every adult’s dreams. It is a direct reflection of an individual’s hard work throughout the years. Buying a house involves a lot of preparations. It includes legal and financial preparations. One of the most crucial parts of buying your dream house is financial preparation. It may take years to save up and be able to afford that dream house. This is true, especially in Singapore’s property market. This is because Singapore has one of the most competitive property markets not just in Asia but also in the world.

There are a lot of factors that drive Singapore’s house prices up but the greatest factor is the limited supply of land. There are too many residents in Singapore and the land area is not enough. People from all over the world tend to cramp in Singapore’s little spaces for job opportunities. This is why the cost of buying a house in Singapore is one of the most expensive. There are a lot of helping hands available to help ease the expensive Singapore house prices.

Many institutions acknowledge the expensive cost of buying a house in Singapore. There are banks and even the Singaporean government themselves who offer loans. However, the most effective way is still to save up. That is why in this article let us talk about some ways on how to save up for your dream house.

How to save up for your dream house

Know your priorities

To save up for your dream house, you must know your priorities. This means that you should only spend on things that are considered necessities. This includes food, transportation allowance, and utilities. You can list down the things that you need to survive. You can budget your salary and categorize your expenses based on these necessities.

One of the things that eat up a lot of our finances is impulsive buys. Since online shopping is very accessible nowadays, we tend to buy things that we don’t need. If you list down only the things that you need you can avoid making unnecessary purchases. It would also remind you that to afford the cost of buying a house in Singapore, saving up is necessary.

Singapore house prices may be relatively more expensive. However, you would be surprised just by how fast you can reach this if you avoid things that you do not need. These things are also considered luxuries. For example, a newly released phone is not an excuse to buy it. Especially when you have a perfectly functioning one. These kinds of purchases are what usually hinder individuals from reaching their dream of being able to afford the cost of buying a house in Singapore.

Set up a savings account

Another effective way to save up for your dream house is to set up savings in a bank account. This would act as a keepsake of your money. This way, you would not be tempted to use your money on unnecessary purchases. You would also be reminded that it is intended for a house. Singapore house prices are high, that is why keeping and saving your money in every possible way is crucial.

Take as an example, a man named Ryan. He has been saving his money on his own for almost two years. However, he keeps on using it for other things. He realized later on that having a large amount of money with you is always tempting. He started making progress when he set up a savings account intended for his dream house. The cost of buying a house in Singapore may be easily obtained if we keep ourselves from spending.

Be flexible

Singapore house prices may still be unreachable if you have unrealistic goals. It is not a bad thing to be open to other options that do not necessarily stray away from your dream house. You should be flexible when it comes to available housing options. There are a lot of housing types that might be perfect for you if you open your doors to some changes. At the end of the day, a more expensive house does not equate to being the best there is. The perfect house is what you make it to be. 

Know more about Singapore’s property market

The cost of buying a house in Singapore has always been pricey. However, there are a lot of ways that we can do to afford our dream house. In SRX Property, we have useful tips and reminders for you. Read more about them today and be financially ready for your dream house.