You will save regularly if you want to buy a house, such as for a down payment and installments, that’s for sure. But it turns out that you also have to prepare savings for big expenses that might occur along the way.
Not the costs of maintenance, renovations, utilities, insurance, furnishing and home decoration as well as land and building taxes that are paid every year (you can already guess these and prepare the funds well in advance), there are other big expenses that you may not expect, thus will surprise you.
First-time Home Buyers, What Should You Prepare (Save) Money for?
1. Credit ceiling reduction
When you have applied for a loan and the bank has approved it, it turns out that there is a possibility that the approved credit limit can be reduced.
The reasons for the lowering of the credit ceiling varied, ranging from the sale value of the house that is deemed not suitable after a survey and checking of the eligibility of the house by the bank (not only new houses but also second houses) to the detection of a history of loan payments that are not good enough or not up to standard.
If the credit limit goes down, then you have to agree to pay for the gap, which usually results in an increased DP from the previously agreed amount.
2. Taxes on buying and selling houses that are borne by the buyer
It turns out, there are a number of costs that you need to spend money on before your dream house is actually yours.
As a home buyer, you must prepare money for Land and/or Building Rights Acquisition Fees (BPHTB), value added tax (PPN), deed of sale and purchase and title transfer fees. You may also need to pay other additional costs such as certificate checking fees just in case and to ensure the authenticity of the house certificate that will soon be yours.
3. Renovations that are not covered by the developer
In general, the developer provides a guarantee. If any part of the house is damaged, you can take advantage of the guarantee. However, carefully examine what damage is covered and how to file a claim. Just in case, you always need to prepare money for renovation costs. And, keep in mind that this warranty is usually only provided for a short time.
4. Cost of deepening the well if the well runs dry
If the house you are buying still uses a well to supply clean water, then you need to take into account the possibility that the well will run dry. When the well is dry, it will be difficult for you to get clean water.
Usually the wells made by developers are only up to 15 meters deep. You need to deepen the well if the well runs dry. And, it would be better if you also create a place to save water. The cost of deepening a well is not cheap because it can reach millions of rupiah.
How to Prepare Savings for Various House Expenses
1. Be discipline in doing budget allocation every month
No need to wait until the house has been purchased, you can start allocating a budget for all of the expenses above regularly every month. If you have prepared the funds in advance, your burden will be lighter later on.
2. Create several savings accounts for house needs
To ensure that funds don't mix with funds for other daily or monthly expenses, you can create several accounts. Don't worry, you don't need to open many bank accounts here and there. Using Jago, you can have up to 20 savings.
Choose to create a Saving Pocket in the Jago application. As the name implies, a Saving Pocket functions as a savings account. Having 10 Saving Pockets means having 10 savings accounts with their respective account numbers. If you want to check all your savings, you don't need to leave the house, let alone stop by Bank Jago. Just log in directly to the Jago application.
3. Saving Pocket can be locked
Jagoans, are you worried because you are often tempted to use the money in your savings? You can choose to lock it up. So at Jago, you can lock your Saving Pocket. Once locked, the Saving Pocket will become a Locked Pocket.
There are many advantages to keeping money in a Locked Pocket. Money can't be taken at any time, so it's definitely used just for paying those house expenses. Then, there is competitive interest, regardless of the amount saved. So, the more you save in the Locked Pocket, the more interest you get.
Besides that, you don't need to save a lot in the Locked Pocket at once. You can also do it little by little. The Locked Pocket accepts top ups at any time, even if it is locked. The amount of interest automatically adjusts. And, the flexible pocket locking period from as short as 14 days makes it a great solution for saving money.
4. Save money in Bibit mutual funds
Apart from the Locked Pocket, you can also save money in the form of mutual funds at Bibit. Link your Jago and Bibit accounts and immediately enjoy the convenience of Indonesia’s digital ecosystem.
You can invest in mutual funds free of top-up fees and monitor investment portfolios directly from the Jago application. There will be Bibit Pockets popping up on your Jago app when linked. Equally important is the ease of withdrawing mutual funds anytime and instantly for products marked with lightning.
Savings in Bibit mutual funds can also be done regularly and routinely by utilizing the Jago Autodebit feature. Set the frequency of automatic savings as you like, from weekly, monthly to yearly.
Jago juga ya, you can prepare funds for various house expenses practically and easily in different accounts but still in 1 application using Jago and Bibit.
*Interest rate can change at any time according to bank policy