May 2017 Market Update - Top savings tips for First Home Buyers
More than 30% of potential first home buyers have said they may have to put their property plans on the back-burner if interest rates rise, new research has revealed.
According to Mortgage Choice and Core Data’s Evolving Great Australian Dream whitepaper, 33.7% of prospective buyers said they would be “increasingly unlikely to buy a home” if rates started to climb.
The fact that a rate increase would encourage more than one in three first home buyers to put their property plans on the backburner is concerning.
The fact is, rates will rise in the future, so it is important for both home owners and potential home buyers to be prepared for this.
For many first home buyers, the hardest part about owning property isn’t managing the mortgage repayments, but saving the property deposit.
Thankfully, there are a few tricks all first home buyers can employ to help you reach your savings goal faster.
Firstly, you need to understand your finances.
Before you can set an achievable budget for yourself, you need to know what you are playing with. How much money are you earning and how much money are you spending each month?
When answering these questions, you need to be as truthful as possible. Don’t say you spend $100 a week on food, when you know you spend closer to $300.
Under-estimating your expenses will only put you further in debt..
Once your personal finances are mapped out, you need to allocate yourself a set amount each month to pay for food, transport, rent/mortgage, utilities, and any other outgoings you may have.
To ensure you stick to your weekly or monthly budget, it is worth trying to withdraw the exact amount of money you need at the beginning of each week.
If you can see exactly how much money you have to spend, you will be less inclined to spend your money on frivolous, unnecessary items.
Finally, where possible it is important to reduce or remove all unnecessary spending from your life.
Things like daily take-away coffees, or cafe lunches can really increase your spending. Similarly, pay tv, STAN or Netflix accounts that aren’t being used, should be shut down. While nice to have, these services can be a real drain on your resources.
If you would like to more savings tips, call Mortgage Choice today on 13 66 78.