Do you want to purchase land, but haven’t yet established a budget to help you reach your goal?
It’s important to take your budget into account so that you can determine what you can afford and how mortgage payments will affect your overall financial situation.
By planning before making the jump, you’ll be able to save more money and ensure you don’t strain yourself. However, it can be tricky to calculate your income and expenses.
Today, the land developers of SRC Land will give you some tips to help you prepare your budget.
How Much Do You Earn and How Much Do You Spend?
The first step to creating your budget is to determine your income and expenses. By doing so, you’ll be able to determine how much you can save for your down payment.
When it comes to your expenses, determine which are related to your essential needs, and those related to your lifestyle and hobbies. It is these expenses you should focus on and remove those you can do without. Keep in mind that the expenses you eliminate should be done for the long term.
Make sure to keep a list either on paper or on spreadsheet software, such as Microsoft Excel.
Set a Goal: Calculate How Much You Can Save
Once you have determined your income and expenses, calculate the percentage you can put into savings. It’s generally recommended that you save 20% of your salary, which means 50% of your income should go towards your essential expenses and 30% towards personal expenses.
Of course, when it comes to savings, it shouldn’t jeopardize your economic stability. If saving 20% affects you too much, you can choose to decrease the percentage according to your capabilities and just save over a longer period.
Remember that your goals should be: measurable, relevant, clear, and realistic.
It is best to do what is reasonably achievable without sacrificing your whole lifestyle. All it takes is a bit of discipline and effort.
Remember That Your Budget Can Change
As much as we can try, budgets don’t tend to keep still. Circumstances can happen and sometimes we need to make adjustments to fit in unexpected expenses. These budget adjustments should only be periodic and controlled so that you can effectively work towards the project ahead.
Changes to your budget can also arise because of costs related to fixing up the land you decide to purchase. Some of these circumstances can be: additional works, permissions, changes in the specifications of any construction taking place, the rise in prices in the market, and other challenges.
Think About the Type of Land You Want to Buy
Think about your ideal lot so you can estimate how much you need to save. You’ll want to get an idea of market prices in your area and the type of properties available to you. Alongside the upfront cost of the property, you’ll also want to keep in mind any additional fees and taxes that may come along with the purchase.
Knowing what costs to expect should help you come up with a budget that will help you reach the next steps.
Land for Sale in Harlingen
At SRC Land, we know how overwhelming the process of buying land can be, and that’s why our goal is to simplify it and work with you to make your dreams of owning land a reality.
Find the best affordable lots for sale in Harlingen, Texas, with SRC Land!