Tips for Beginning to Save up for Your First Investment Property
On our blog today, we’re discussing the most effective ways to build up your savings towards your first investment property. It’s not as intimidating as made out to be, so get excited and take notes!
First and foremost, allow us to reiterate: saving up is not as intimidating as it is made out to be. It’s important that you internalize this, as if you don’t believe you can do it, it’s likely that you’re setting yourself up for failure. So to get yourself prepared, start planning. Sit down with all financial documents needed and don’t leave until you have a perfect grasp on where you stand and what you can afford. Professionals can greatly help with this, so don’t hesitate in reaching out to have a second pair of eyes along with years of experience. Realistically, the only thing you’ll be saving up for is your down payment, but you’ll want to have your finances in order so that you know what you can afford monthly in terms of mortgage payments and a rainy day fund for when unexpected charges come up.
Following this, your primary goal should be to stash your income. Put away as much of it as you can, and while it may be difficult, it will be worth it. Experts say that 50% is doable, but we know that’s ambitious so aim for at least 10-20%. The more you will be able to do, the better off you will be when the time comes to make a down payment. The more money you can pay upfront, the more equity you will have in your home. Start tracking all of your spending- everything. Budget and prioritize what money needs to be spent, versus what can be cut out. This will help to keep you on track and get you closer to your goals.
If you want to be overly ambitious, get a second job. Something to where you can stash 100% of your paycheck. It will be tough, but looking back on it you will be incredibly proud of yourself for being able to say that you did it and made your home a reality. All in all, the most important aspect is to have a full understanding of your finances. Don’t hesitate in getting a loan officer and real estate agent involved, as they will know the ins and outs of the whole process. Good luck!