In this article, we share our top five tips to help you make your property ownership dreams a reality by the time you are 30.
1. Keep saving
No doubt, saving a sufficient deposit is the most challenging part of buying your first home.
Be strategic with your spending and your saving by having a plan in place. Start by creating a monthly budget with all your incomings and outgoings.
Consider cutting certain expenses that you no longer use, such as memberships and subscriptions.
Open a separate bank account with a high interest rate that you regularly transfer a certain amount of your salary into as well as any additional savings.
If you’re renting at the moment, consider moving back home, as it can make a huge difference to your ability to save.
2. Ask your parents for assistance
Your parents can help you with your home ownership goals by going guarantor on your loan or providing a financial gift.
As a guarantor, your parent will use the equity in their home to secure your home loan. It means you can purchase a home with a smaller deposit and you can avoid paying Lender’s Mortgage Insurance.
Alternatively, your parent may wish to give you a sum of money to boost your savings. In this case, you may just need to keep the money in your account (untouched) for a period of at least six months, as this will show the bank that you can save money.
3. Take advantage of first home buyer grants and exemptions
First home buyers can receive assistance from the government in the form of grants and incentives.
Each state has its own set of requirements in order to be eligible and you can read about them here.
4. Get expert advice
If you’re looking to buy your first home, your local Mortgage Choice expert is an excellent starting point.
They will be able to look at your borrowing capacity and suggest a home loan product that is suited to your needs and situation.
Your broker can also provide you with advice on how you can enter the market, whether that be through a guarantor or buying as an investor.
5. Think outside the box
As much as you may want to own a freestanding house with a backyard in the suburbs, you’ll have to re-evaluate what you want from your dream home, based on your budget.
This could mean buying a small home such as an apartment or buying in an area that’s more affordable. You may even forgo living in the home you buy and instead, use it as an investment in order to pay off the mortgage faster.
You may decide to move into your investment property after a period of time, or you can use it to build up equity to buy another home.
So there you have it. While the path to purchasing isn’t always easy, it’s doable. You just need to be dedicated and do your research.
If you need any further tips, make sure you contact your local Mortgage Choice mortgage broker today.