Borrowing is always a financial challenge first and foremost. In such cases, we tend to squeeze the last pennies that we would roll into credit. There’s no problem with that, it’s a perfectly understandable feeling, but let’s do it wisely! How do you group your monthly loan amount? Here are some examples:
Let’s say both members of a couple earn last year’s average salary, which is gross $ 297,000 , which is around $ 197,545 net, not counting family tax relief. Make a total of $ 100,000 a month for this real estate project.
All we do is pay for the loan
Unfortunately, the classic case of not dealing with any financial contract is just credit. One exception is home insurance, just because (most of the time) the bank requires it.
With a maturity of 20 years, we can borrow 16 million forints a month at a cost of 80 thousand forints per month. Use the loan calculator and calculate it for yourself! And over the course of 20 years, we will repay more than $ 20 million to the bank. In fact, this is not bad credit or overpayment. The remaining 16,000 forints will not be spent, will be spent or will remain in our bank account. Where can we put the 16,000 to make it better worth it?
Credit + savings, the best solution
By its very nature, credit is structured in such a way that as we repay, our debt is reduced. In the beginning, to a lesser extent, then more and more. This is because in the beginning, we rather pay back the bank charges.
And imagining savings is the other way around , and from the very beginning our money starts to accrue.
Can we have a better solution than increasing our money and reducing our savings at the same time? Not likely.
In the language of the numbers, this means that in the previous example, if you throw away the “$ 16,000” in a savings (LTP) , you can accumulate $ 2.5 million in 10 years. Of course, you can choose a TBSZ account as a savings.
There are two things we can do when we put the money collected here into our credit. Either reduce the monthly repayment (the loan will be cheaper) or leave it, but the maturity will be shorter (and the loan will be cheaper again). It is clearly better for us to repay and save at the same time.
Even before the loan, save!
We figured out that we could charge $ 16 million out of $ 84,000 a month. But what if it was enough to raise only 10 million forints? This is possible in two ways. Either we negotiate a smaller purchase amount, choose a smaller property, or… We collect as much money as possible before the loan.
We can have almost 6.3 million forints of 2 (husband and wife) 10-year home savings of 20 thousand HUF (without taking out the loan installment). This way, we are no longer having $ 16 million, but just 10. For 10 years, the $ 10 million will be “only” $ 54,000 a month. This saves us 20 years * 12 months * 30,000 forints = 7.2 million forints.
And, then, we haven’t even talked about the fact that under this credit, we can have savings.
It’s worth playing with a little credit
As you read through the article, you must have shown yourself that home loan can be made very smart and ingenious. All you need to do is be aware of the opportunities in the financial market. You may also want to consult a specialist for this. Contact us and we will do our best to assist you in this process!