My chances of getting my own place
Welcome back to my blog. I hope you are all doing well. As you know I recently got a raise, which means that the chances of getting my own place are higher now.
Last year I made a post where I explained why I couldn’t move out. So let’s see where I am today and what my chances are now.
First, let’s discuss my salary. In 2021 my monthly salary was €2.050. This year my salary is €2.500.
Let’s start with renting an apartment. In the Netherlands, you usually have to earn 3 times the rent. In 2021 I could only rent an apartment with a maximum price of €683,33. I was often looking for landlords who would make exceptions, but it was hard to find.
Now with my new salary, I can rent an apartment with a maximum of €833,33. That’s a big difference. But I don’t want to rent an apartment that expensive. I want to stick around €700/€750.
Let’s talk about buying a house now. If I wanted to buy a house in 2021, I could only get a mortgage of €116.000. With my new salary, I can get a mortgage of €156.000, which is a big difference.
At this moment I still don’t know if I am going to rent my first place or buy. But I am open for both and I will be acting and saving like I am going to buy a house.
I get so excited talking about it. I want to buy an apartment that will cost €200.000. I have seen pretty nice apartments around this price range. Of course, I can’t get a €200.000 mortgage, but there are ways I can fill that €44.000 gap. I will lay out my options:
Option 1: I can save €44.000. To be honest this is the easiest option. All I have to do is just put money aside. If I save €11K a year I will be there in 4 years. In 4 years I will of course be earning more money, so eventually, I won’t even need to save €44.000 anymore.
Option 2: Just wait until I have a high enough salary to get a €200.000 mortgage. I will need a monthly salary of €3.300 which is an increase of €800.
Option 3: Start a business and make €10.000 a year.
Option 4: Start a business and make whatever amount and save €44.000 with the profit I make.
There are probably more options but I am sticking to these 4. So which option am I going to choose?
I am probably going to combine all of them.
At some point, I will have to start saving, whether it’s €44.000 or not.
As you know I am a full-time accountant. Of course, I still want to grow. And I am really motivated to grow and make another promotion. Now that I am a medior I am going to work hard to become a senior. My salary will then increase by at least €300 per month, which means that I will be able to get a €174.000 mortgage. By then I will only have to save €26.000.
I decided to start a planner business. I just started and I am currently still in the designing phase. I really want to start this business and I have to stop being scared and just do it. I will make a whole post about it. When my business is finally launched I can either make €10.000 each year or make whatever amount of money and save until I have €44.000. I actually think that I can make that €10.000 a year happen. But the thing is, I don’t know if I am going to launch my business in 2022 or 2023 yet.
So when I start saving to buy an apartment I will probably start with options 1 and 2. I am actually already working on option 2. I am already working towards that new raise. To be honest I don’t know if it is actually possible to make that promotion in 2023. Because this year I have to learn all the medior tasks and then I have to master them. We will see what happens.
So where will I be saving that money? I will be saving a part of that money in my investing account so that it can grow and I can earn dividends from it and make even more money. I will be investing the first 75%. And the remaining 25% will be saved in my savings account. I will be doing it that way because I want to have enough time to choose the right moment to cash out my money. I don’t want to cash out during a dip. I will probably be investing in 3 dividend stocks that I normally wouldn’t invest in because they are too expensive for me right now.
So when will I start saving for a house? I will start saving in the second half of 2022. By then my emergency fund will be fully funded and I will hopefully have my driver’s license.
As I have mentioned in previous posts. Saving for my emergency fund was my least exciting goal. But now that I know that I can start saving for a house after that I am really excited about it.
That’s it for today. Thank you for your precious time and until next time!
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