Buying a house is everyone’s dream goal. I was lucky enough to have a mother buy me a house when I was young.
I guess you have clicked on this blog post wanting to discover some kind of secret to scraping together a deposit for your first home.
Sorry, but there isn’t an easy way. There are no easy answers when it comes to navigating Australia’s booming property market, getting a foot on the property ladder isn’t impossible although our media would have us believe.
So let’s see how you can own a home sooner.
Start setting a goal and start a budget
It can be easy to live pay cheque to pay cheque and not really think about how your current spending might impact your future. YOU NEED TOSET GOALS OTHERWISE YOUR DREAM OF A HOME IS JUST THAT!
Once you set that goal, a budget is going to help you get there. There’s no dancing around it; scraping that deposit together is going to be a tough slog and it can take around six years to save.
The next step is to change your lifestyle
But small changes in your spending behaviour today can make big differences down the track. That doesn’t mean you shouldn’t be able to enjoy a twinkling of joy like the occasional brunch or night out with friends. Often there are lower cost substitutes that can replace extravagant spending.
Ask mum or dad
Over the past couple of years, joint mortgages have surged alongside the rise of property prices in Australia’s capital cities. On face value, the idea of pooling financial resources with family or friends to buy a property makes perfect sense. It immediately boosts your buying power, and for many first home buyers, it’s potentially one of the only ways they can afford to get into the market.
Invest in future boom areas
As a first home buyer, you don’t need to buy a million dollar home. Why not buy a run-down house for a couple of hundred thousand in an area you wouldn’t normally live and fix it up. First-home buyers priced out of the inner and middle ring of suburbs should consider looking at the affordable, entry-level properties found in the out the outer ring of suburbs, often where new suburbs with house and land packages are positioned for future growth.