Buying a home is the "NEW" engagement ring

November 28, 2014
Aurelio Tenaglia

Rumour has it that pop diva Beyonce Knowles is considering recording a follow up song to her smash hit “Put a Ring on it”. The song is called “Forget the ring and just buy me a house”!

 

In research conducted by law firm Slater and Gordon it has been reported that “putting a ring” on it is a much more intimidating thought for the commitment-shy Gen Y’s than signing up for a new home loan.

 

It seems that the new narrative of Generation Y is love first, then the home, then the wedding.

 

And given that the planning of the wedding remains on these young couples radar, it is important for Gen Y’s to look at the most effective ways of funding both the wedding and the home purchase.

 

Weddings generally require deposits and payments to be paid well in advance of the “big day” and one of the biggest mistakes a young couple can make is to commit all their savings to their wedding. Some naively think that they will be able to borrow 100% of the value of their home purchase.

 

In many cases it is smarter to use a personal loan to fund the wedding and keep your savings locked away for the home purchase. Most banks/lenders require some form of genuine savings if you are borrowing more than 90 - 95% of the value of the property. If you use all your savings for a wedding, then it may delay your dreams of buying your first home because you don’t fulfil the lending criteria of most lenders.

 

My advice is that it pays to plan ahead.

 

It pays to seek the advice of an expert and it pays to have the expert map out the correct financial strategy to achieve your goals and dreams. I am well placed to arrange your personal loan for your wedding and your home loan for your “love nest”.

 

Using the words of John Lennon;- “Love is a promise, love is a souvenir, once given never forgotten, never let it disappear!” Call me on 0438258888.

 

 

 

Posted in: First home buyers

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