Financial Strategies for Millennials and Gen Z to Own a Home
The current rise in house prices has made most Millennials and Gen Z pessimistic about homeownership. Homeownership is actually possible with sound financial strategies, even if you currently earn the minimum wage. Here are some steps you can take to make your dream of owning your first home a reality.
Targeted Savings
Create a savings plan with a target date for when you need to accumulate the money, especially for the down payment. This target savings plan should also be tailored to the house you plan to purchase, such as the location or housing complex you’re planning to move to. This can help you target the amount of money you’ll need to accumulate while monitoring price movements in the area.
To be more focused, you can save using a separate account and start a regular savings plan by separating your income from your savings target from the start, allowing you to better control your spending.
Debt and Lifestyle Management
Starting to pay off your debts and credit is a good step. Debt can complicate financial management and is a crucial factor in reducing the risk of default when taking out a mortgage. Moreover, paying off debt and credit will protect you from the risk of credit default and maintain your credit score in the Financial Services Authority (OJK)’s SLIK (Smart Loans and Loans).
Government Programs and Subsidized Mortgages
Taking advantage of government programs such as subsidized mortgages or tax-free loans for a certain period can be a financial strategy to reduce housing costs. You can research these programs and check whether you qualify.
Investments and Additional Income
The most realistic financial strategy is to seek additional income. Find a side job that doesn’t interfere too much with your main job, such as on the weekends. The money earned from this side job can be collected as capital for investment. By investing, you can maintain and even grow the value of your money over time. However, it’s important to remember that investments also carry risks depending on the type of instrument.
The steps above can be started as soon as possible, even if you haven’t decided to buy a house yet. It’s also important to remember that buying a home, especially for the first time, is a major decision that requires careful consideration. YUKARI Sawangan collaborates with several banks to make it easier for you to own a comfortable and secure home in the Depok area. If you are interested, you can contact us at 0823-1133-4579 (WhatsApp), visit us via Instagram DM or visit the official YUKARI Sawangan website here.
