How to set goals to successfully buy a house
A house is something we all dream of, and we strive to work hard and earn enough money to save up for our dream house. However, since a house or condo is a high-value asset, it's crucial to have a clear, accurate, and systematic plan and savings goals. Otherwise, the chances of successfully purchasing a house will diminish. Here are some guidelines for setting a goal to successfully save for a house:
Specify a clear "house price" target.
Typically, people who dream of owning a house often only think about "saving up to buy a house" or a condo. They often don't specify a specific price. Without a specific house price, they don't have a clear plan for how to save enough money to buy the house they want. To make savings more concrete, it's best to set a clear target price, such as a house valued at 2,000,000 baht. This will allow you to plan how to save to achieve your dream. However, setting a target price must be grounded in reality. This goal should be a dream that inspires us, not a fantasy that discourages us from striving to make it a reality.
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Set a deadline for achieving your goal
Once you have a target house price, the next step is to set a timeframe for achieving it. This goal must be stated in a specific number, just like the house price itself. For example, if you want to buy a 2,000,000 baht house within 5 years, for example. The reason for setting a deadline like this is because if you don't set a timeframe for saving, you'll keep putting it off and lack true savings discipline. When time passes and you see that you haven't saved enough, you'll feel discouraged and eventually give up on saving to achieve your goal.
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Develop a savings plan that aligns with your goals and lifestyle.
Once you've determined the house price and savings period, the final step is to write down a clear savings plan. This will provide you with a clear guideline and foster consistent savings discipline, ultimately leading to achieving your goal. For example, if you set a 5-year savings plan to buy a 2,000,000 baht house, a rough savings plan that you can immediately think of would be: You need to save 400,000 baht per year, or approximately 34,000 baht per month. When you see these numbers, you need to recalculate whether your monthly income can be allocated enough to achieve your goal of buying a house. If your income is too low, it indicates that your house price target or savings period may not be appropriate. You should revise your goals to make them more realistic. Alternatively, you may need to "increase your income" from other sources to make your goal a reality. Writing a savings plan is crucial and essential, allowing you to constantly monitor how close you're getting to your goal.
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To buy a house, you don't always need to save up a large sum of money. You can opt for a loan, which can help you reach your goal faster. However, banks typically approve loans of approximately 80% of the selling price. Therefore, you still need to have at least 20-25% of the selling price saved as a down payment. Setting goals and planning your savings remains essential. Furthermore, when purchasing a house through a loan, We'll be burdened with monthly mortgage payments for decades to come. Therefore, it's essential to carefully plan your expenses and set a disciplined monthly savings goal. Otherwise, it's highly unlikely that we'll be able to successfully save up for our mortgage payments.
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Source: REIC
