Once you’ve decided that you’re finally ready to take the plunge and purchase your very first home, there are a few hurdles you have to jump over before you settle into your new abode.
These can be financial, emotional and lifestyle related and sometimes it can mean sacrificing a few things in order to get there. Here are some tips and tricks for getting you into your own home sooner!
1. Make a plan, a savings plan.
Saving for a deposit can be a tiresome process but not if you have your goals and targets set out simply. Draw up a savings plan that works for you, how much can you realistically save weekly, monthly or annually?
There is no point setting yourself an unrealistic goal, it will just leave you disappointed and unmotivated. First thing you should do is calculate what you spend each week, seem obvious?
Once you start sorting out how much you spend on food, car loans, coffee, magazine and Netflix subscription you’ll realise where and how you can make cuts.
2. Start making reasonable cuts.
So once you’ve devised a savings plan that works for you there are some tough decisions to be made. If you live in a fairly metropolitan area is it possible for you to survive on public transport alone? If so, then maybe it’s time to sell your car.
Another big portion of your pay probably goes on paying your rent, however, do you have the option of moving back home with your parents or a friend?
It might not sound too appealing, but think of the savings! If you pay $400 a week on rent you could save $10,400 per year just by finding a housemate to split the rent. For some, that decision alone will make a big dent in a house deposit.
3. Take all the help you can get.
The First Home Buyers Grant is definitely worth having a look into.
According to the WA Government:
“The first home owner grant is available to eligible applicants who are buying or building their first home. First home owners purchasing or building a new home may be eligible to receive a grant of up to $10,000 and first home owners who purchased an established home on or before 2 October 2015 may be eligible for a grant of up to $3,000. As from 3 October 2015 the first home owner grant applies to new homes only.”
In order to be eligible, you have to be an Australian citizen, be over 18 and live in the property for at least 6 months among a few other things.
The grant is to encourage young Australians to immerse themselves in the property market since the purchasing of property in Australia can be difficult for people just starting out.
4. Do your research.
Do a lot of research: research anything and everything about the property market not just in your city but interstate as well. It’s always good to have a thorough understanding of the ins and outs of the property market.
For example, if you intend to bid at an auction, researching how to go about securing a property as well as auction etiquette will give you a leg up on the day. Understanding the history of the area where you’re looking at buying is also a wise idea as prices can fluctuate based on location. If you don’t understand something, ask someone who does. The Mortgage experts at Smartline Rockingham can help with this.
5. Get the home inspected.
Once you’ve found a property that makes you want to sign on the dotted line, you need to have the building inspected by a professional. Don’t just have your builder Uncle come and have a quick look, get a professional inspection done. Not only will it give you peace of mind and save you potentially thousands of renovation costs but also grounds to negotiate on the sale price.
These are just a few of the things you should consider when you’ve decided on buying a house. Of course, there is a vast array of other personal choices that need to be made like if are you ready for a commitment and whether you intend to own the home for a long or short period of time.
The most important thing to always keep in mind is that this can be a long process; don’t get carried away and have your heart set on the first property you see (unless it is definitely the one and all the others you saw were garbage). Be open-minded and do your research. Happy house hunting!
