financialtreat – will explain about Find Out How to Finance Home Purchases and Renovations! which you will get in the following article. let’s look at this article carefully!
It’s hard for you to find the perfect place to live when you buy it. So, if you are buying a house, you need to consider the cost of a large renewal or renovation, you may need support from a Residential Building Credit (Kbr). Well, for that, how to finance a house , let’s know carefully.
These costs must be factored into the total price, especially when choosing between various properties or comparing the costs of building your own residence. For that, know how to easily finance a house and be able to build a house with the same comfort as buying an existing house.
Come on, find out how to finance home purchases and renovations!
You not only find huma but also have to consider the time to find an architect or builder, choose every element of the new structure, to the business of finding the ideal bank to apply for a Residential Building Credit.
Many consider that buying a house is not an easy matter. Because not only through various considerations, it takes discipline in managing personal finances to be able to own a house.
But don’t worry about realizing your dream of owning a house. As long as you still have income and are wise in managing your finances, the opportunity to achieve your dreams will always be there. There are several things to consider in buying and here are some tips that can be use as a basis for consideration to undertake it:
1. Improve Financial Flow
Start by managing all your finances. If you want to buy a house on credit through a bank, then make sure the debt payments are in smooth condition. This is because every loan application to the bank, including housing ownership credit (KPR), must go through a checking process at Bank Indonesia (Bi checking) to determine the eligibility of prospective debtors. If your name is blackliste by Bank Indonesia, your credit application will automatically be rejecte.
Pay off all debts, both consumptive and productive debts, before taking a mortgage. If the prospective home buyer still bears other debts, such as to a bank, friend or relative, it is possible that the cash flow will be disrupted to pay off the mortgage. Generally, mortgage installments are quite large, reaching approximately 30 percent or even greater than your monthly income.
2. Determine the Value of the Residence to be Purchase
This step is very important. Don’t let you become a house poor, spending a large portion of your income on buying a house which results in difficulties to meet other living needs.
The first residence you will buy and occupy should not be recognize as an investment instrument. Your main goal is to buy it because you need a house, not an investment. Choose a place to live that you can buy.
To avoid a house poor, mortgage installments should be limite to a maximum of 30 percent of monthly income. If your net income is IDR 10 million/month, look for a house with a maximum installment of IDR. 3 million/month.
3. Prepare Down Payment
To buy your first residence using a Residential Ownership Credit (KPR), a down payment (Dp) of at least 20 percent of the house price is require. The larger the DP you deposit at the beginning, the lighter your monthly installment burden will be.
Determine the amount to be collecte and when it will be use before setting aside money to pay Dp. By having an understanding goal, you will be more motivate and discipline to raise funds, and also understand exactly the amount you still have to collect. Ideally, DP is collecte over a period of one or two years. If it is more than that, the price of housing will be higher and it is likely that it will no longer be able to be purchase.
In preparing Dp, allocate at least 30 percent of your monthly income. This is also a vehicle for training for you in paying off mortgages. Not only relying on monthly income, you should also take advantage of the THR and incentives you receive to prepare Dp funds. Not everyone can buy or build a new home. But do not make this an obstacle to have a dwelling even though it is not a new building.
It’s just that if the house you buy is not a new building, it generally requires renovation in several parts to make it a comfortable residence. Especially for a newly built residence, sometimes many owners are not happy with the shape of their house, so they plan to renovate their residence.
The need for renovation will also be more urgent if the condition of some parts of the house requires repairs as soon as possible. Cases will arise if the funds owne for the renovation are still far below the budget or even from zero. If so, you don’t need to worry, here are some tips that can be considere as a solution to overcome this case:
4. Apply for Residential Renovation Credit (finance a Home)
Astra Credit Companies (Acc) is a financing forum that offers convenience for you. By providing financing facilities for various needs and one of them is residential renovation financing. With a fast process and easy requirements, the Fund Facility from ACC provides an additional opportunity to realize your dream of a beautiful and comfortable place to live.
5. Take advantage of the Residential Renovation Credit Facility from Jamsostek
For those of you employees who are already registere as members of Jamsostek. (Currently calle BPJS Employment) and have been a participant for at least 5 years. You can take advantage of the residential renovation credit facility from Jamsostek.
In financing this residential renovation credit, Jamsostek also cooperates with an exclusive bank. The guarantee is your funds store in the Jamsostek account. For the process, you just have to come to the nearest Social Security office and complete the require requirements.
6. Take advantage of the Top Up Facility for Residential Renovation Costs (finance a Home)
For those of you who have a place to live with KPR facilities whose payment status has not been paid off. When the atmosphere of the house already requires renovation. The quickest and most conducive solution is to take advantage of the top up facility from your KPR.
Top up facility is the application of loan funds with residential collateral. Which is currently still being finance by the Bank in the form of KPR. This facility is supporte by several banks and can generally be provided after the customer has passe half of the credit period and has a good credit history. Your initial mortgage will be close and you will get a new credit. The difference between your loan ceiling funds after deducting the previous mortgage residue, you can use to renovate your residence.
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7.Operate Transfer of Mortgages to Get Renovation Funds
If the house you have now is still on credit (Kpr). Then you can transfer/transfer credit to another bank to get renovation funds. You can use the difference between the credit ceiling and the loan residue for renovation costs. You can do this method if you are unable to apply for a top up facility to the bank providing your mortgage
8. Cooperation with Material Stores in the form of Term Payments (finance a Home)
If you have no money at all, it’s best to save first. However, if you only have a limite budget for residential renovations, then you can get around the renovation costs by collaborating with material stores in the form of payment for the purchase of building materials on a term basis through monthly installments.
You need to know that the material store has a target from the supplier. (Distributor) to immediately spend stock in the store. Base on this and the understanding that the cost of home renovation is very large, material stores deplete stock by making it easier for prospective buyers who will carry out renovations in installments to purchase building materials in their stores.
The payment tempo is usually in the short term of 1-3 months. And the main condition is that you are well known by the building material shop. You can apply for an extension of the payment due if your reputation is good or look for another building shop.
The biggest cost in the home renovation process is the purchase of building materials. If you have found a solution for this, then you just need to find a fee for the builder. If you can find a building contractor that you can work with to get term payments, of course this will make it easier for you to renovate your home.
Well, those are some important reviews on how to finance a house with this article, I hope this is useful, thank you for your attention.