Will Christmas kill your new home Dream? A Home Builders warning
Home Builders warn first home buyers not to overspend at Christmas
We all know that Christmas spending can go over the top because when using cards there is no warning when you have over spent.
So how can first home buyers control spending so that we can still take care of the big dream of homeownership? Good question.
People love to enjoy themselves at Christmas and that can mean spending more than we ought over the festive season and losing sight of our main goals. No home loan means no new home.
Spending big over Christmas or at the New Year Sales is all fine and well unless you plan to buy a new home the coming year.
Why? Because a new home will invariably mean a home loan, and a preceding construction loan if you are building your new home. And that won’t happen if you incur bad credit, which is so easy to do over Christmas if you don’t have a plan.
Why and how Christmas can kill Home buyer dreams.
Come February your Christmas spending will hit the fan, and the bills will start to fill your letterbox. Then the kids go back to school and fees need to be paid. If you haven’t budgeted for these your credit card debt will grow, and you may not be able to pay the bills as they fall due.
But you need to ensure that you pay them, even if it means going without in some other areas.
Why, because if you don’t your loan may be declined. Its that simple.
Just a few hundred dollars unpaid on phone bills, gas and electric or judgements for money owed, and your chance to buy new home this year may be torpedoed.
How can you avoid Financial stress over Christmas and still enjoy the festive spirit.
Plan now for next Christmas, and your new home.
According to Mr Mortgage the lazy way to owning your new home is to set and forget.
To do this Mr Mortgage suggests:
Have three bank accounts, preferably fee free. Online ones pay high interest and with no fees.
Check about having your salary automatically split between the three accounts.
- A Christmas account. Ensures money for Christmas gifts and expenses, little by little.
- Living expenses account. This helps you pay your bills on time and live week to week.
- Home saving account. A regular saving amount that is never touched and always grows.
Doing this will ensure, there is no loose money around to overspend on.
With these three accounts in place you can now relax, your new home is virtually assured
- Christmas stuff only comes out of the Christmas account.
- Living and car expenses, including annual bills comes out of the living expenses account.
- And the home savings account never gets touched until you pay the initial deposit for your new home.
New Home Buyers that do this will:
- Have a fun Christmas
- Pay their bills on time
- Have their home deposit growing even over the Christmas period.
- Look like a great prospect for a home loan because they have clear credit and regular savings.
Make the financial stresses normally associated with Christmas are a thing of your past by having your money budgeted for living, Christmas and your new home down payment.
