Americans like to spend on a great many things, but one of things they love spending on the most is real estate. If you don’t believe it, the statistics say it all with experts indicating that 30% of their earnings are spent on housing. According to the data from the US Bureau of Labor Statistics in their 2018-2019 study, households are still spending a large portion of their income on housing, a statistic which indicates that with inflation it is bound to increase. It is for this reason that it is essential that you take control of your personal finances.
Getting Your Act Together
The first step that you need to take is to come up with a viable budget plan that will include all of your essential and extra expenditures. It needs to record the costs of food, drink, utilities, and groceries (which are considered essential costs) and any TV packages you might have.
When you take your income and subtract by the summation of all the bills you have, you will be left with the remainder which will be used to settle housing expenses, most importantly rent. Ensure that the remaining amount which you will use to spend on housing is below 30% of your total income to qualify for affordable housing.
However, in the end, if you find that you have insufficient funds, then it is important you work on a proper budget plan to ensure that all expenses can be punctually settled throughout each month of the year.
Take Good Care of Credit
Credit scores are a make-or-break deal when it comes to purchasing or renting housing and for this reason it is imperative that you maintain a good credit score. Maintaining good standing with credit is no big challenge, as long as you pay close attention to it. Bad credit scores are a big turn-off for property managers, and they will be less like to sell or rent a property to you. Most importantly when you are trying to purchase a property to own it, your credit score affects your ability to secure a loan to complete the sale.
Credit scores in the real estate market are a matter of monetary life or death. The process of checking your credit is easy and hassle-free. All you need is your Social Security number and you can check your score at AnnualCreditReport.com, in addition you will be able to get a detailed report. Apps such as Credit Karma are also useful and give you suggestions on how to improve your score.
Know Your Needs
There is a wide variety of affordable housing programs that are out there. You may look into the following: HUD housing, Section 8 housing vouchers, Non-profit housing, Homebuyer assistance programs. Look into each program and try to see which one serves your best interests according to your individual financial situation.
Housing is only one aspect that should be part of your long-term life plan and therefore should be part of your vision on how you want to live. For this reason, it’s important to determine what your needs are in terms of space and facilities. So, you should be asking yourself questions like how many rooms do you want and what type of rooms? What type of amenities do you want the property to have? What’s the crime rate and how easy is it to sell the property once you decide to leave? These are important questions to ask yourself before buying or renting any property.