Crucial steps to go from graduate to homeowner

05 May 2021 | Life Style

After completing their studies, most graduates will begin their career path and embark on their next stage in life. What many fail to realise is that the financial decisions that young consumers make early on in their lives will largely dictate their financial well-being in the future.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, explains that starting in the right manner from the beginning will assist graduates towards building up a good credit score and creating a financial nest egg that will help them to achieve their financial goals, such as owning property.
“When graduates first start to earn money, the temptation to indulge and splurge on unnecessary items can be difficult to resist. However, to set themselves up right from the beginning, graduates will need to learn how to live within their means and avoid making large purchases on credit. A high debt-to-income ratio will impact a graduate's ability to show the necessary affordability levels for bond approval. Therefore, to give themselves the best chance of success, graduates must exercise disciplined spending habits from their very first paycheque,” Goslett advises.
Unfortunately, most students will graduate with substantial student debt which will hinder them until it’s paid off. Ideally, Goslett recommends that graduates should focus on paying off this debt as quickly as possible.

High debt, low savings
“Once student debt is cleared, they’ll be able to start building up their savings. Many Namibians struggle with high debt levels and minimum savings, however, if graduates take the necessary steps to reduce their debt from the start, they’ll be paving the way for future financial success,” says Goslett.
The sooner graduates start putting money aside for savings, the better. Namibia has a very low household savings rate. As a result, many prospective homebuyers don’t have the necessary savings in place to put down a deposit or to cover the other expenses involved in the property transaction, such as the transfer duty, attorney fees and registration costs – which can end up costing buyers tens or even hundreds of thousands of dollars.
“Where possible, any salary increase that the graduate receives should go towards building up savings instead of unnecessary splurging. A portion of these savings should be set aside in a contingency fund. It’s impossible to predict what will happen in life, so it’s best to be financially prepared for the unexpected,” he recommends.
Most financial advisers suggest that an ideal goal to set when setting up an emergency fund is enough money to cover living expenses for between three to six months. Having a contingency fund such as this will reduce the need to use credit cards or personal loans when unexpected expenses occur, which will protect consumers’ credit scores and help them avoid getting stuck under piles of debt.
“Healthy financial habits and the right money management techniques will ensure that graduates can take full advantage of property market opportunities as they arise. Those who are close to having the necessary finances in place can speak to a real estate professional who can help them begin their search for property,” Goslett concludes.

Similar News

 

Father’s day gift ideas in and around the home

4 days ago - 14 June 2021 | Life Style

Finding the perfect Father’s Day gift can be tricky. To narrow down the search, consider the items that could be used in and around the...

Health hazards in and around the home

1 week ago - 10 June 2021 | Life Style

The pandemic has highlighted just how quickly germs can spread. Though everyone takes the necessary preventative measures when leaving the home, it is important to...

Warm your home with winter décor

3 weeks ago - 28 May 2021 | Life Style

Spending many hours indoors during winter can cause homeowners to start loathing their homes. Though some might consider seasonal decorating unnecessary, changing up a home’s...

Renovating? Consider these tips

3 weeks ago - 27 May 2021 | Life Style

Fixer-upper homes sell for far less than other homes in the same neighbourhood, which means that buyers can get more for their money if they...

Go from for sale to sold in 5 steps

3 weeks ago - 26 May 2021 | Life Style

The real estate market is experiencing high levels of activity within many suburbs across the country. Regardless of whether a seller finds themselves in an...

Get rid of odours in your new home like...

1 month - 19 May 2021 | Life Style

When purchasing a property where the previous owners either smoked or kept pets indoors, buyers need not be concerned about how the home smells, since...

Spotting property investment opportunities early

1 month - 18 May 2021 | Life Style

Lifestyle changes brought about by the pandemic combined with record-low interest rates are likely to lead towards a host of new investment opportunities developing within...

How servitude impacts property values

1 month - 14 May 2021 | Life Style

When searching to purchase a property, most buyers are on high alert for any excuse to hackle down on price. Discovering that a property comes...

Honesty the best policy

1 month - 10 May 2021 | Life Style

Effective communication is a fundamental factor within successful relationships. This is especially true for the relationship between the prospective homebuyer and the real estate professional...

Why sales fall through before transfer

1 month - 29 April 2021 | Life Style

Many sellers falsely believe that the sale is as good as done once the Offer to Purchase (OTP) a home has been signed. The unfortunate...

Latest News

Are you being overcharged?

16 hours ago | Opinion

Windhoek • Marvin DanielsIt’s been more than a year since Namibia reported its first confirmed Covid-19 positive case in March 2020. Since then, the pandemic...

Charcoal activities unleash large-scale bush...

1 day - 17 June 2021 | Agriculture

Windhoek • [email protected] bush fires allegedly sparked by charcoal burning operations have razed around 35 000 hectares of grassland to the ground across seven farms...

Beatrice, Christine readying for Tokyo

1 day - 17 June 2021 | Sports

Henk Botha, coach of Namibia’s fastest female sprinters Beatrice Masilingi and Christine Mboma, said the athletes are hopeful of reaching their set targets before travelling...

ECDs at schools shut down

1 day - 17 June 2021 | Education

The Ministry of Gender Equality, Poverty Eradication and Social Welfare has temporarily closed early childhood development centres (ECDs) operating within formal school premises countrywide, due...

More vaccination, testing centres on...

1 day - 17 June 2021 | Health

Khomas governor Laura McLeod-Katjirua said additional vaccination and testing centres would be identified in the region in a bid to bring services closer to the...

Watch out for scammers, NamPol...

1 day - 17 June 2021 | Crime

Namibian Police Force (NamPol) spokesperson, Deputy Commissioner Kauna Shikwambi, cautioned government employees to be on the alert for a scam operated by people pretending to...

Melkies tests Tesla in Germany

2 days ago - 16 June 2021 | Business

The founder and owner of LEFA Transportation Services test-drove the future of transportationwhen he cruised around in a Tesla in Germany recently.Melkies Ausiku has long...

Second Online Agriculture Series on...

2 days ago - 16 June 2021 | Agriculture

Bank Windhoek hosts its second Online Agriculture Series on Wednesday and Thursday (23 & 24 June) themed “Innovation and Trends that will shape the future...

NMRC warns against ivermectin use

2 days ago - 16 June 2021 | Health

Namibian Medicines Regulatory Council (NMRC) Registrar, Johannes Gaeseb, said the use of ivermectin in human beings has not yet been registered or granted authorisation in...

Load More