How to save to buy a house

One of the most requested properties by Ecuadorians are homes. The site that can become the home of Ecuadorian families. The acquisition or construction of a home is an issue that every family has to evaluate at some point in their lives.

For the purchase of a house are taken into consideration various factors, according to real estate consultant Beth Parrales, it should be determined if it exists: security, social benefits, modernization, proximity to their social circle and work. In addition to being at a considerable distance from supermarkets, schools, stores and hospitals.

For the purchase of a house, the financial possibilities must be determined. The financial coach Andrés Mórtola reminds that it is important to bear in mind that one should only borrow up to 40% of their income, since if it is higher, that would be considered over-indebtedness.

Once that value has been determined, advisor Parrales recommends two possible methods of payment. Acquire a house through an installment plan from a construction company to be able to give 30% down. The second is with a banking institution where the person proposes a savings that will serve to cover the payment of the entry.

Mistakes when buying a house

Coach Mórtola states that if buyers are not organized, buying a home can become a headache and mentions that people often make these mistakes:

Borrow more than your ability to pay, more than 40% of your income.

· Buy a house over 15 yearssince you end up paying more than double or triple what it costs.

· Not giving a good entry fee so that the monthly payment is not so high.

· not compare interest rates in the market.

Although the purchase of the property can be a long process of paying, it is necessary to take into account that it will not be the only debt that is presented. This is why advisor Parrales recommends measure expenses. “Don’t get into debt with cars or trips, focus on buying the house,” says Parrales. If your expenses rise, a banking institution will be able to see that the buyer is not as solvent and therefore, a possible loan would be for a lower amount.

How to handle income during savings time?

Make a real budget of your income and expenses

· Prioritize saving to meet your goals.

· Search for new sources of income, which are diversified.

· Find a type of passive income.

“I recommend verifying the growth of the area, if in the next 5 or 10 years there is going to be a regeneration project. Currently the sector of Guayaquil with the greatest projection is Vía a la costa”, explains Parrales.