Buying a new house is probably one of the most important and often the most costly decision you make in your lifetime. Building or buying a house of your own often involves a huge cost and you can overshoot your budget if proper planning is not done. We all want a good, if not luxurious place, to call our home. These houses don't necessarily have to be costly homes; there are always ways to save money on a house.
Here are some tips on how to save money on a new house:
- You should always research the housing market before deciding on which house to buy. A comparison should be made between the home prices, facilities within the house and surrounding areas, and other factors like availability of amenities. You can explore various areas to find the best house price based on your requirements. You may find a good house cheaply in an area a little farther away from the central areas of a city, where a similar house would cost much more.
- For saving money, consider buying an apartment, rather than an individual house. The construction costs and other expenses involved are much lower in the case of apartments than in the case of separate houses. As a result, the home prices are also much lower. Besides, with an apartment you can save money on various facilities as they are shared between the owners of different apartments in the building.
- You can save money on a number of utilities such as electricity and power when building or buying a new house. For example, you should consider installing fluorescent lights, which have a longer life and use less electricity. Similarly, you can take a minimum amount of showers, and the gardens can have plants and flowers that are perennial in nature and do not need annual replacements.
- If you are building a house, do research on the cost of various construction materials. Compare the prices in different markets for items like wood, fittings, and other building materials and then opt for the best available choices.
- The cost of labor is another area that offers a lot of scope for saving money when building a new house. You can consider an area where wage rates are low. Often, labor costs are cyclical in nature and there are months when these costs are low. You can find out the trends after talking to those who have recently built houses.
Last, but not least, your mortgage offers the biggest chance for money saving on a new house. A backward calculation of mortgage can help your efforts of money saving and help you remain within budget for your new house. First, make an estimate of how much you can afford in monthly repayments and then calculate the size of the mortgage that you should take. Also, you should keep the mortgage period as short as possible and make the maximum possible downpayment to save on interest costs.
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