Costs to budget for outside your building and land contract
If you’re looking at your costs and your bank account numbers give you a good feeling, then make sure you take a second look. So many times, buyers forget about the extra costs that exist outside of their building and land contract.
When making what will be one of your biggest financial commitments in your life, you need to make sure your finances are in order, always remembering within this scenario that it’s better too have more rather than less. Consider these factors:
To some people, no frivolity means no fun. If you consider yourself to be part of this bandwagon then see how much you can leverage your finances outside of your building and land contracts. Do you have a disposable income to spend on the things you love to do? And if not, are you ready to ditch any of your habits? This can include opting out of pricey lunches, your daily lattes and more.
Speaking of finances, when’s the last time you updated your budget? Committing to that land and building contract doesn’t mean your financial foes are over. In fact, this is hardly the case. Have you taken into consideration your daily needs? This includes car payments, groceries, various bills and more. If you’re confused then it’s time to talk to your financial advisor. Just remember, every little bit matters.
This is one that people tend to overlook. Sometimes in the momentum of making our big commitments, we let a lot of details slip by and that can get you into a lot of trouble. Can you think of any legal fees you might have approaching? Are there strata fees or council rates? Do your research and do it well.
Focus on your savings
Outside of all these costs you want to make sure you’re saving for your future. In the grand scheme of things your land and building contracts are just the beginning of that. Do you have a financial cushion in case you lose your job? Have you considered opening a first home saver account? Paying attention to your savings account is crucial because it’s something that a lot of lenders will want to see in case you need any extra cash in the future. Think big.
Use these tips to your advantage and think outside of the box after making your building and land deposits. You’ll thank us in the future!