Interested in buying homes for sale in Coral Gables this year? You are not alone. The 2016 Financial Literacy Survey shows Americans are stocking away their hard-earned money more this year than last. Personal savings rose 2 percent from 24 percent in 2015 to 26 percent so far in this year. This slight increase is a positive sign since savings means there is extra money available to be held back from the daily and monthly expenses of living.
Renters Consider Buying Homes for Sale in Coral Gables
This year’s survey shows the portion of those contributing income toward non-retirement savings is back to where it was in 2013 which is 69 percent.
Determining who is actually able to make these type of savings varies from age to occupation. These national numbers eventually come back to those living locally in towns everywhere including renters in Coral Gables real estate properties.
This year’s renters are facing higher rental costs. Demands for rental properties are up and are sure to increase, particularly at this time of year with graduations happening all across the area. The idea of continually paying for space while not reaping any long-term benefit really doesn’t make financial sense.
Down Payments on Homes for Sale in Coral Gables
Financial advisers recommend first-time buyers place 20 percent down on a house to increase the chances of qualifying for a loan. This gives buyers wanting homes for sale in Coral Gables a bigger stake in the property.
Loans insured by the Federal Housing Administration, like FHA loans, require much smaller down payments. They can be as low as 3.5 percent of the home’s actual purchase price. However, there are other stipulations on these mortgages. Buyers will be required to secure private mortgage insurance and the costs for that can range from 0.3 percent to 1.5 percent of the loan amount every year.
If you haven’t really thought about saving on your future homes for sale in Coral Gables, then get started today.
How to Start Saving for Coral Gables Real Estate
When money is tight, it may seem impossible to save. Even toying with the idea may be painful but a plan of action needs to be thought out. The truth is life happens. Whether it is the loss of a job, the death of a family member, or onset of an expensive illness, the likelihood that something like this might occur in anyone’s life is 100 percent. It will happen. How well you can handle it financially is part of why savings is so important.
Tips from the National Foundation for Credit Counseling® offers these recommendations:
- Start small. Take 10 percent from every check you receive in take-home pay into an interest-bearing account.
- Check rates. Shop around for the best interest rate you can earn in a savings account. Just be sure it is in an FDIC-insured liquid account so you won’t incur any penalties if withdrawing money early.
- Commit to it. Although the money is yours and can be accessed whenever you’d like it, you need to think about it like it is not yours. Set out a defined amount that you want to save for in a down home and commit to it until it is reached.