7 Tips on How to be Homeowners at 30

Have you always dreamt of the time when you can buy a home? You're probably not the only one. Current data shows that homeownership rates are going down in the ranks of young adults as compared to baby boomers and gen Xers. As for Gen Z, these young people have an even lower homeownership rate.

Ever wonder why? Well for one, it's because of home price appreciation, meaning, as time passes by, the rate of a house and lot in the country is not the same compared to its previous years' value. Hence, first-time homebuyers may get intimidated and feel uncertain about whether they can become responsible homeowners. If you want to have your own home at 30, then all you have to do is to try and follow the following tips to get that home purchase.

1. Acknowledge financial hardship

Most millennials only buy homes when they know that they can afford the costs of down payments, let alone home purchases. With basic necessities' cost on the rise and other expenses like student debt and family need to look after, people of the same age groups delay owning homes.

But that should not hinder young people from homebuying. Rather, even through the pandemic, you must acknowledge that despite these challenges, today is the best time to commence planning this great purchase of your life.

2. Open and grow your savings account

What's one way to start building your wealth? It's saving money in a bank. Ideally, young people should be saving at least 20 to 30 percent of their salary, instead of buying during a sale, or putting it down to become impulse buyers.

However, your bank savings does not only serve as a way to safeguard your finances, another reason to have money saved in a bank is that you can use it to build your credit record.

3. Save for a house down payment

While we understand and cannot expect not to enjoy and spend your hard-earned money, it is wise to set a goal. For example, you can get started on saving enough for possible down payments for a house or even a home loan.

If you're thinking, why would I save if I am not certain of the cost I will have to pay in owning my future home? It's because there's no better time than today. You can start small, then as you earn more, you can increase how much you allot for your savings.

4. Research about the Home buying process and other Homeownership plans

So you think you have enough savings to stop renting and becoming full-pledged homeowners? Even if you've just begun, you should search for the best area for your first home. Do you want to stay at the place where you currently rent? Or are you looking across the country for the best investment? No matter which you choose, you should weigh the chances of where you would get the highest returns for your money.

You could also check out the process of how to find homes and what data or documents you may need to prepare and provide as first-time homebuyers. You can first speak with your parents for that much-needed purchasing advice, with realtors for a professional take, or fellow millennials who are already homeowners or have the knowledge to guide you about the housing market.

You may also need to learn how to read the fine print of documents, compare and contrast rates, or gather as much information as possible for you to reach a decision depending on the answers you have found. For instance, you may have a question about what type of financing best suits your payment capability as a homebuyer.

5. Look at several homebuyers' financing options

You don't have to wait for decades, or until you have enough funds to become homeowners. If you really want to start on your homeownership, consider getting a mortgage or a housing loan. Your homeownership rates will affect your mortgage, that's why you need to choose which lenders can provide enough finances to make your dream of owning a house happen. You can choose to avail of a PAG IBIG Housing Loan or if you prefer, you can also get a home loan from private lenders such as banks. You just need to secure the frequency of your mortgage payment, may it be every quarter or every half of the year.

6. Choose an affordable housing market option

The majority of affordable house and lot projects in the Philippines now offers plenty of payment choice. To counter the lower homeownership rate, Lumina Homes now suggests that you choose from a number of their affordable house and lot model houses. Don't worry, you and your future family can still enjoy quality features for a lifetime.

You can choose from the various development projects that you can see on a Philippine map. Bear in mind that mortgages may vary depending on the homeowners and the place where your house will be located, so a thorough analysis of realtors, the impact on your finances, and your line of work must be included before you buy a home.

7. Live within a required budget

In terms of saving and living within means, previous generations may have met fewer challenges as opposed to the millennial age group. As compared to decades ago, the value of our money can buy fewer items due to increased prices.

However, that should not be one of the reasons why you haven't reached your goal of owning your dream home.

Because not everyone has an inheritance, look for ways how you can boost your income. It might be difficult and may be taking a long while before you can close a deal for your house, but as long as you can keep increasing your source of income, then it will be worth it in the end.

Among the ways you can increase your income streams are via doing side gigs such as writing for social media, building websites, or becoming business owners serving customers. You can even indulge in stocks, and buy and sell shares from businesses.

Another way you can stick to your budget is to reduce shopping and excessive travel. Whether you focus on this tip for just a month, a year, or a decade, you'll be thrilled at how much you can save.

Get Your Life Changing Investment — Your Own Lumina House and Lot

Don't let the pandemic stop you from getting a house as the fruit of all your efforts. Enjoy the lowest rates and the highest returns when you speak to a Lumina Homes accredited sellers to kickstart your homebuying.

Homeownership need not be difficult, just settle the down payment, share some documents, and earn the rights to be called a homebuyer. It's not too early nor too late, become a Lumina Homes homeowner today!