Here\u2019s the advice given to <\/b>realise your dream of owning your first property:<\/b><\/p>\n The first stumbling block most people face when it comes to buying their first home is in saving up for the 10% initial payment and other miscellaneous fees. The best way to do this is by exercising delayed gratification \u2013 reduce your luxuries now to enjoy even greater luxuries later.<\/p>\n This could be practiced in many ways like opting to use an outdated mobile phone or driving a modest second-hand car. Reducing these expenses helps to build up personal savings that can form the bedrock for the down payment on your home.<\/p>\n Relentless attention should also be paid to improving your personal cash flow by maximising cash inflows and\u00a0minimising cash outflows. This is best done by working hard to increase income and practising delayed gratification to reduce your expenses.<\/p>\n You can also utilise the money in EPF Account 2 to maximise the size of the initial payment and to minimise the amount borrowed.<\/p>\n \u00a0– Rajen Devadason, CFP,\u00a0<\/em>Securities Commission-licensed financial planner with MAAKL Mutual Bhd and CEO of RD WealthCreation Sdn Bhd<\/em><\/p><\/blockquote>\n Start with your aspiration. Understand why you need it, identify the type of house you want to get, where it should be located, when do you need it and how much it costs.<\/p>\n <\/p>\n Then, come up with a suitable regular investment or savings plan to help you achieve your goal. If you can\u2019t afford to buy your dream house yet, consider renting or start small.\u00a0Home is not only a place where we live but where we belong to. You want your \u201chome\u201d to bring you joy and not quarrels over the debts in the long run.<\/p>\n – \u00a0Sin Chee Kwan, CFP, Chief Executive Officer of Fin Freedom Sdn Bhd<\/em><\/p><\/blockquote>\n It\u2019s a norm to live on credit in today\u2019s economic climate. Spending is much easier than saving, especially saving for a big ticket item like your first home. It is increasingly hard for an average Gen-Y to buy a house of their dreams. \u00a0However, it\u2019s our financial behaviour, not financial mathematics that determines the success of this goal:<\/p>\n – Gavin Teoh Hock Geh, CFP, IFP, B.Sc(Hons), Director of Advisory & Practice Management,\u00a0<\/em>CMSRL\/A3564\/2007, Centum Sage Advisory<\/em><\/p><\/blockquote>\n Start saving as soon as you start receiving an income, be it angpow<\/i>, pocket money or salary. The most important part in the act of saving is not the amount but the habit. Inculcate this habit by first putting aside a\u00a0minimum\u00a0amount of money regularly, before you even get a chance to spend it.<\/p>\n The best time to save is now! The sooner you start saving, the more you will accumulate. Since you have longer time horizon (due to your young age), invest the money wisely and regularly to help you grow your money.<\/p>\n Always choose the right investment vehicle that suits your risk appetite.<\/p>\n – Datin Alice Neow Ean Lee, CFP, IFP, Associate Director \u2013 Financial Planning for Women, A.D. Financial Sdn Bhd<\/em><\/p><\/blockquote>\n Your plan to buy a home should start the moment you get your first job, and not a year before you get married. Make it your top priority and aim to purchase your first property before you get married because after you are married, your spouse will often influence your choice of property.<\/p>\n You can use this commitment to push yourself to work harder to earn more money. To save up for your first house, keep your living expenses below 50% of your take home income.<\/p>\n Save and invest the rest, about 20% to 30% for house. If you need a car, buy a used car instead of a new one, so that you can allocate more money for property. Maintain a good record of debt repayment so that it does not jeopardise your chances of getting a home loan.<\/p>\n Reduce expenses that do not put money into your pocket. All these will help you to cultivate the habit of saving for the future and spending within your means.<\/p>\n – SP Lim, CFP \u00a0Licensed Financial Planner, Wilfred Consultancy<\/em><\/p><\/blockquote>\n Before we get on to the common phrase of property, \u201clocation, location, location\u201d, let\u2019s start with the first and more important step \u2013 budget, budget, budget. For those considering to save for their first house, always start with a budget.<\/p>\n With so many financial expectations and limited resources, getting the first property can be a huge financial burden. Like any financial plan, the first steps anyone should take are:-<\/p>\n – Lawrence Seow, CFP, Head, Financial Planning, VKA Wealth Planners Sdn Bhd For most newlyweds, buying their first property can be stressful due to other commitments, such as car loans and family dependents. Thus, it is important to set a target for yourself.<\/p>\n If your target is to buy your first residence in three years\u2019 time, set aside a minimum of 30% of your household net income and save up to 20% of the price of your potential property.<\/p>\n For example:<\/p>\n Household net income = RM6,500<\/p>\n 30% monthly savings for 3 years to achieve 20% of down payment:<\/p>\n RM6,500 X 30% = RM1,950<\/p>\n RM1,950 X 36months = RM70,200<\/p>\n With RM70,200, you can start looking for a property within the range of RM351, 000<\/p>\n By setting a realistic deadline, it motivates you to achieve your target and minimise the risk of property volatility. It is also recommended to save up 20% down payment to cover the processing fees, legal fees, stamp duty and others. By saving more, you can hedge the property inflation risk.<\/p>\n – Nicholas Chu (CFP, IFP, RFP), Financial Planner cum Speaker, Phillip Wealth Planner Sdn Bhd<\/em><\/p><\/blockquote>\n Armed with these practical tips, you can take first step to buying your first home. These money management tips could possibly save you from making a bad decision that would delay your goal.<\/p>\n Ultimately though, saving, no matter how insignificant the amount may seem, is more than half the battle won. \u00a0Discipline yourself to stick your plan and goal.<\/p>\n Share with us some of lessons you have learned in buying your first residence in the comment section below!<\/p>\n <\/p>\n No idea how to get started in saving for your first home? Have your number one burning question answered by 7 financial experts here.<\/p>\n","protected":false},"author":9,"featured_media":9750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[218,21],"tags":[],"class_list":["post-9693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-management","category-properties"],"acf":[],"yoast_head":"\n<\/span>1. Exercise delayed gratification<\/b><\/span><\/h2>\n
![\"Rajen](\"\/articles\/wp-content\/uploads\/Rajen-Standing2.png\")
<\/a><\/p>\n<\/span>2. Begin with the end in mind<\/b><\/span><\/h2>\n
<\/a>Buying your first property is often one of the biggest events in your life and as such you should begin with the end in mind.\u00a0Do not make the mistake of rushing into buying or entering into any investment or savings plan without proper planning.<\/p>\n<\/span>\u201cYou want your ‘home’ to bring you joy and\u00a0not quarrels over the debts in the long run.\u201d<\/span><\/h3>\n
<\/span>3. Sacrifice now for bigger gains later<\/b><\/span><\/h2>\n
<\/a><\/p>\n\n
<\/span>4. Inculcate the habit of saving<\/b><\/span><\/h2>\n
<\/a><\/p>\n<\/span>\u201cThe most important part in the act of saving is not the amount but the habit.\u201d<\/span><\/h3>\n
<\/span>5. Start planning early<\/b><\/span><\/h2>\n
<\/a><\/p>\n<\/span>\u201cReduce expenses that do not put money into your pocket.\u201d<\/span><\/h3>\n
<\/span>6. Don\u2019t underestimate the power of budget<\/b><\/span><\/h2>\n
<\/a><\/p>\n<\/span>\u201cBefore we get on to the common phrase of property, \u201clocation, location, location\u201d, let\u2019s start with the first ands more important step \u2013 budget, budget, budget.\u201d<\/span><\/h3>\n
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\n<\/em>(A Financial Planning Firm Licensed by Securities Commission & Bank Negara Malaysia)
\n<\/em>(A Corporate PRS Advisory Firm Licensed by Securities Commision & Federation Of Investment Managers Malaysia)<\/em><\/p><\/blockquote>\n<\/span>7. Set a target and work towards it<\/b><\/span><\/h2>\n
<\/a><\/p>\n<\/span>Ready to start your home buying plan? Calculate your <\/b>housing affordability<\/b><\/a> and determine the property price point you should go for.<\/b><\/span><\/h3>\n
<\/span>Giving up on your dream home as it is just too far out of your reach? Get a starter home<\/a> first.\u00a0<\/b><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"