Melton
Buying a home is probably one of the biggest if not THE biggest financial commitment you will ever make in your life. This means that you need to have a good plan of action that will work for you as an individual.
Most first home buyers in Australia range from their mid 20’s to their mid 30’s and the average loan that they take out is around $300,000, 70% of first home buyers are renting whilst saving for their home.
– Create a budget and stick to it
It is important to be really strict when it comes to saving, get yourself into good habits from the get go.
– Plan to put away a certain amount of savings when you are paid
The day after you are paid, have a scheduled bank transfer to take your goal set amount out of your everyday account to your savings account.
– Start off with small goals in your savings
Small goals can slowly add up to larger ones.
– Budget within your means, don’t stress yourself out by putting away more than you can
Don’t be unrealistic, put away what you can afford to without it putting serious strain on your everyday life.
– Make saving and goal reaching a positive experience
– List other expenses that are primary first e.g rental payments, phone bills, grocery bills, entertainment bills
– Small things like taking lunch to work is a lot cheaper than buying each day
– If you like your coffee, try to cut back (one $3.80 coffee twice a day every day = $53.20) Try having one or day or once every second day
– Find activities and things to do at home rather than heading out all of the time
Costs for traveling and heading ad up to be quite expensive in comparison to staying in. Instead of heading to the movies, hire some movies. Instead of having brekki out, walk to the shops and buy some different ingredients to your usual cereal. Sit outside and eat for a different experience than the old dining table.
– Have a park picnic, pre pack sandwiches and snacks (a lot cheaper than eating out at restaurants)
– If you can travel to work by bicycle this will save a lot of petrol or money you spend on public transport
– Take into account stamp duty, conveyancing and legal fees, not just the property price
– Talk to a broker and get their opinion, ideas and strategies to buying your first home
– Remember, the bigger the deposit the better!
