The phenomenon of the millennial generation being unable to buy their first home is not just news. According to a report from the Urban Institute, only 52% of the total millennial generation are considered capable of buying a home. Are you one of the 52% millennials? Don’t be insecure, let alone give up, the desire to buy your first home at a young age can come true! Here’s a trick so that the millennial generation can also buy their first home.
Make Sure Your Financial Condition Is Stable Enough
For millennials who have consumptive habits, such as drinking coffee every evening at the coffee shop or like to change to the latest edition of smartphones , you should try to evaluate your financial condition again before planning to buy your first home. The trick is to divide the total debt owned by the total value of personal assets. If the result is below 50%, then your financial condition is stable.
However, don’t get discouraged if your debt ratio is still higher than your assets. This is the time for you to pay off these debts and reduce daily expenses that are not included in your primary or secondary needs. Try to re-arrange the portion of your budget so that there is a portion of money for saving and investing each month.
Investing to Pay Off Home Down Payments Before
There are still many millennials who are tempted by cheap down payments when buying their first home. In fact, a cheap house down payment means a higher interest rate on installments! The greater the down payment for the house, the smaller the monthly mortgage payments that must be borne. So, you should first prepare a high down payment for your house before taking your first mortgage.
If so, the dream of owning your first home is getting farther away, right? Certainly not! Instead of putting money for a house down payment in ordinary savings, it’s better for you to invest money to later use it as a house down payment. Choose short-term investments with low risk, such as money market mutual funds. You can also choose term savings or time deposits to “cultivate” your home down payment savings so that you can collect them as soon as possible to buy your first home.
Thorough House Survey
While collecting down payment for a house, why don’t you all look for the first house that feels most suitable for you? Take the time to look for the best home, whether it’s a new home in a housing estate, a pre-occupied home, an auction house, or an apartment. Pay attention to the price, is it included in the price range of your house? Don’t force your financial condition to buy a first house that’s too expensive, okay!
Also pay attention to the developer or seller of the house. Look at their track record, whether they can be trusted or not. You can also ask the residents around the house about their experiences while living there. Then, check the location. The first house located outside the city will obviously be cheaper, but is the house close to public transportation or toll roads? Home accessibility is very important so that your activities and your family will not be hampered.
Choose a mortgage from a bank
. The safest option for buying a first home economically is through a mortgage program from an official bank. Through the mortgage program from the 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’s a sign that your first home has been declared legal. In addition, the bank also has a list of developer partners, so that mortgage programs from banks are more trusted.
Pay Attention to Interest and Mortgage Tenors
Millennials are in debt because mortgages are usually caused by high interest rates or short mortgage tenors. You can avoid this by reading more carefully about the mortgage program that will be taken. There are two types of mortgage interest, namely fixed (fixed interest as long as the mortgage is running) and floating (interest can change according to Bank Indonesia guidelines). Get the right mortgage tenor, not too short and not too long, so that it fits your productive age.
For millennials who want to make their dream of owning their first home come true, you can take Permata ME KPR . Permata ME KPR provides the convenience of a low down payment and light installment interest. You also have the opportunity to get a tenor of up to 30 years with a loan limit of up to 5 billion! Get your first dream home with an economical, flexible and low interest mortgage program from Permata Bank!
Together with the #CantStopME campaign, Permata Bank offers a variety of banking products suitable for millennials, from savings, credit cards, mortgages, KTA, to investments.