The stereotype that millennials are unable to buy their first house is not just a recurring news. According to a report from the Urban Institute, only 52% of the total millennial generation are considered capable of buying a house. Are you one of those 52% millennials? Don't feel insecure, let alone despair, the desire to buy your first house at a young age can come true! Here are simple tricks to help millennials buy their first homes.
Make Sure That Your Financial Condition is Stable
For millennials who have consumptive habits, like buying a cup of coffee every afternoon at a coffee shop or like buying the latest edition of smartphone, you should try to evaluate your financial condition before planning to buy your first house. The trick is to divide the total debt owed by the total value of personal assets. If the result is below 50%, then your financial condition is fairly stable.
However, don't feel down if your debt ratio is still higher than assets. This is the time for you to pay off these debts and reduce daily expenses that are not included in primary or secondary needs. Try rearranging the portion of your budget so that you have money for savings and investment each month.
Investment for Paying Off The House Down Payment
There are still many millennials who are tempted by cheap Down Payment (DP) when buying their first house. In fact, a cheap house DP means a higher installment interest rate! By paying a great amount of down payment on the house, you will have smaller house installments that must be paid each month. So, you should first prepare a large sum of money to pay off your house DP before taking the first home installments.
In that case, the dream of owning your first house will get further away, right? Definitely not! Instead of putting money for a home DP in a regular savings account, you better invest the money to later be used as your house DP. Choose short-term investments with low risk, such as money market funds. You can also choose a term deposit to "cultivate" your home DP savings so you can collect them as quickly as possible to buy your first house.
Perform Thorough Home Surveys
While collecting the down payment for the house, why not look for the first house that you think suits you best? Take the time to find the best home, whether it's a new house in a residential area, a second-hand home, an auction house, or an apartment. Pay attention to the price, is it still within your budget? Don't force your financial condition to buy an expensive first house!
Also, pay attention to developers or home sellers. Look at their track records, can they be trusted? You can ask the residents around the house about their experiences while living there. Then, check the location. The house located at the outskirts of town will obviously be cheaper, but is the house close to public transportations or toll roads? Home accessibility is very important so that your activities will not be hampered.
Use KPR from Bank
The safest option to buy your first house within budget is through a KPR program (Household Loan Credit) from an official bank. By using the KPR program from a bank, you can enjoy various additional facilities. Meanwhile, the bank will also check the house before approving the mortgage application. So, once your mortgage application has been received, you can breathe a sigh of relief because that is a sign that your first house is legal. In addition, the bank also has a list of developer partners, proving that the KPR program from a bank is more reliable.
Check the Interest Rate and Tenure of KPR
The case of millennials stuck in debts because of mortgages is usually caused by high interest rates or short mortgage tenures. You can avoid this downfall by reading more carefully about the mortgage program that will be taken. There are two types of mortgage interests, namely fixed (fixed interest as long as the KPR is running) and floating (interest can change according to Bank Indonesia references). Take the right mortgage tenure, not too short and not too long, so that it fits your productive age.
For millennials who want to make their dreams of owning their first homes come true, you can take PermataME KPR. PermataME KPR provides easy payment, low DP, and low installment interest. You also have the opportunity to get a tenure of up to 30 years with a loan limit of up to Rp5 billion! Get your dream first home with the economical, flexible, and low-interest mortgage program from PermataBank!
With the #CantStopME campaign, PermataBank offers various banking products suitable for millennials, from savings, credit cards, mortgage, KTA, to investment. Check the full info here.
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