Many people spend their entire lives living on rent. They never even get the taste of safety, security, and the wholesomeness of living in their own house.
Having your own house has plenty of perks. But, the most special part of having your roof over your head is that sense of accomplishment you get from buying your first real estate with your hard-earned cash.
If you wish to buy your own house in Florida, you have made an excellent choice as living in the sunshine state is something many people dream of.
The warm weather and the even warmer people will make you want to be a Floridian for life! The housing prices are higher than in many other parts of the US, but the extra money is worth all the amenities and benefits available in Florida.
Housing Prices in Florida
The average cost of housing in Florida is approximately $342,077, but the home values are often drastically different in various parts of the state.
For example, the city with the cheapest housing in Florida is Dade city, where the median housing price is $122,600. Another area with affordable housing is Homosassa Springs, where the house prices can be as low as $152,500.
If you want to live in a big city, Jacksonville has the highest population. Housing prices are comparatively reasonable at a median cost of $231,800. If you want to live in Miami, debatably the most glamorous city in the United States, the prices can range from $220,000 to even 75 million dollars!
If you are a young professional who wants to live somewhere vibrant like Tampa or have a family and want to settle in Orlando, housing prices for decent homes can range anywhere from 220,000 to 450,000 dollars.
Are you thinking of selling your house in Orlando to buy a new one? We Buy Houses In Florida in under 14 days with a guaranteed cash offer!
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Tips for Saving Up for a House in Florida
Last year, housing prices increased by 32% in many Floridian cities. In this active housing market where the prices are as high as the summertime heat in Florida, being able to afford to buy a house seems impossible.
But, if you live responsibly and learn to save up diligently, you too can buy your own house in Florida. You have to make a downpayment of at least 20% to buy a house in Florida, so saving up for that is the first step to take.
Here are six hot tips that can help you save up for a house in Florida:
Living Responsibly
“Easy come, easy go” should not be your attitude towards money if you wish to save up for your new house in Florida.
If you want to live in a decent place in the sunshine state, you need to make a downpayment of around seventy thousand dollars. If you want to save up enough money for that, you will need to learn to live responsibly.
Once you start earning your own money, it becomes difficult to keep track of your expenses. Refusing to visit that expensive restaurant or not buying those expensive gadgets is difficult. When you work hard to earn that money, you will naturally feel like you deserve to spend it.
Living a little responsibly and saving up little by little every week can help you accumulate enough money for a new house. Just be a little more cautious the next time you think you need to buy something. Give it some thought and ask yourself if you need it or if it’s only an impulse.
Stay Away From Debt
If you wish to move to Florida and are thinking of buying a house there, you need to get rid of any pre-existing debt. There are two main reasons why debt is a huge obstacle to saving up for a new house.
Firstly, if you are in debt, saving up becomes quite difficult. The value of most debts keeps expanding the more you delay its payment. So, the best way to deal with the debt is to pay it off as quickly as possible. Once you are debt-free, you can manage your finances and accumulate your savings.
The second problem with debt is your credit score and debt management capabilities. If you plan on buying a house on a mortgage, the lenders will go through your credit history.
Your credit score is proof of your reliability as a borrower. If your credit score is poor, showing that you have had difficulty paying off debt, the lender can refuse to give you approval for the mortgage.
So, if you want to save up for that new house in Florida, make sure you are debt-free and have a good credit score.
Opt for Buying in Cash
Oh, the temptation of buying things and paying later! Most mortals can’t refuse this alluring opportunity. You are online shopping, and you see a pair of beautiful shades that you simply cannot resist. So, even though you are running low on cash, you buy the item and pay with your credit card.
Buying things on credit constantly, especially when you can’t afford it, can quickly turn into debt. Some people fall into a habit of buying in credit and stay in constant debt.
The key is to avoid buying things when you cannot afford them. Even when buying home appliances and devices that cost more money, try not to buy things on credit.
Save up some money and make cash payments only. By making cash payments, you are completing transactions then and there. This means you have no money due to be paid, which will help you save money.
Move Somewhere Cheap
The best time to buy a house is when you move somewhere new. If you want to move to Florida, you probably have a place in mind where you want to buy a house. If the place you want to buy your house in is expensive, consider moving to a cheaper area when you are saving up.
Many small towns have cheaper utility rates and grocery costs. Opt for an area where the tax rates are also low. You won’t get too many amenities in a small town, but the lower cost of living will always be a welcome change.
Even if you want to move to a nicer neighborhood in a town or city in Florida, opt for the cheaper place so that you can save up.
Open an Automatic Savings Account
Do you ever feel like there is never enough money? There is a blurry line between what we need and what we want. It is easy to get confused about what we should be spending our money on a stressful day. The key is to make the money to be saved unavailable the moment it reaches your regular bank account.
Let’s say you can afford to save 15% of your salary. If you make an arrangement with the bank where it puts away that 15% to automatic savings account the moment you get your salary, it will be able to consistently save money without a hassle.
That money will remain untouched, and you might even get some interest return on your savings. Over time, your savings will steadily accumulate to fund the purchase of your new house or at least pay the downpayment.
This kind of savings plan can also be great practice for later when you have to pay your mortgage payments every month and live on less money.
Making Sound Investments
Let’s say you have already saved up a certain amount of money, but it is not enough to pay your down payment? What can you do now?
Saving up more money will take time, and it might be years until you can get a decent amount for a downpayment. A great way to deal with the situation is by making sound investments.
Most people are scared of investing their money as it will always involve risks. However, if you do proper research and find safe investments, you can double or triple your initial investments.
A high-yield savings account is one of the safest ways to increase your funds. You can also try purchasing bonds from various authorities, which is a decent way of boosting your savings. Other safer investments include mutual funds, annuities, etc.
Final Thoughts
Saving up for a house is not easy. It requires patience and perseverance. If you live and spend a little cautiously, you will manage to save up for a house in no time. Try out these tips to curb your expenditure and increase your savings so that your dream house in Florida can become a reality.
