Considering the prospect of buying your first home this year? The journey to homeownership may present some challenges, especially for those in their twenties. Recent data from the Australian Institute of Health and Welfare reveals a decline in the rate of young adults owning homes, emphasizing the need for strategic planning. Despite these challenges, the dream of having your own home remains very much alive! Here are four crucial steps to set you on the path to purchasing your future home:
- Start Saving Early and Be Financially Savvy
Embark on your homeownership journey by adopting smart money-saving practices. Consider implementing the 50:30:20 rule, allocating half of your income to essential items like food and rent, while dividing the remaining portion between leisure activities and savings. Following this rule can help you consistently save, regardless of your income level.
Incorporate simple changes into your lifestyle, such as cooking at home instead of ordering takeout, biking to work to save on petrol, or choosing affordable home gatherings over expensive outings. Building good money habits will contribute to your home deposit fund.
Learn more about effective deposit-saving strategies here.
- Use Credit Wisely to Avoid Debt
While credit cards can be convenient, it’s crucial not to exceed your limits. Missing payments or accumulating excessive debt not only impacts your financial health but also negatively affects your credit score. A poor credit score can pose challenges when securing the right home loan for your dream home.
- Consider All Costs of Homeownership
Acquiring your first home involves more than just managing mortgage payments. Take into account various associated costs, such as:
Stamp Duty: A one-off state government tax based on the property’s purchase price.
Legal and Conveyancing Fees: Engage a conveyancer specializing in real estate legalities to handle paperwork, including the Deed of Transfer, and address property zoning and technical details.
House Inspection and Cleaning Costs: Invest in professionals to assess the property’s condition, helping you understand potential maintenance needs and associated costs. Factor in expenses for cleaning and fixing up the property to avoid unforeseen financial burdens.
Choosing a fixer-upper without considering these costs might turn out to be more expensive than expected.
- Seek Assistance from a Mortgage Broker
Mortgage brokers play a crucial role in navigating the complexities of the home loan market on your behalf. Beyond comparing home loans, they stay informed about market trends and changing lender requirements, providing valuable recommendations.
Even before you are ready to purchase a home, a mortgage broker can offer support by explaining the home buying process and collaborating with you to achieve your property goals.
If you are committed to turning your homeownership dreams into reality this year, reach out to us today! Contact our office at 07 4033 0254 or apply online.
Make your dream home a reality with expert guidance and support.