A beautiful wedding, a baby on the way…
Next step… a beautiful 3-bedroomed home in a nice suburb.
There are many reasons to join the property market and buy your own home right now…
Interest rates in Australia are at an all-time low and no-one knows how long this reprieve will last.
You therefore have the opportunity to enter the property market and purchase your dream home with lower repayments – and the chance to finish paying back your home loan sooner.
Odds are, you’d rather live in your own home when you retire. And purchasing it now will ensure that you’re done paying for it long before then.
Plus, the government wants you to own a family home. And they’re providing ever more favourable social security and tax rules to home owners (Source: Sydney Morning Herald). This could potentially help you grow your wealth.
As a first time home buyer, it seems there is no better time than now to purchase that dream home. But in order to survive financially, you need to take to heart the following advice.
SAVE FOR YOUR DEPOSIT
Saving up for at least 20% of the deposit you require for your new home is the ideal. This lowers your monthly repayments and you will have extra money for your family. Also, you avoid paying for a rather expensive fee in the form of the Lenders Mortgage Insurance (Source: Westpac). Plus, the practice of setting aside at least 30% of your salary each month will help you easily manage your loan repayments once you’ve purchased your home.
BUDGET FOR YOUR LOAN REPAYMENTS
One of the biggest mistakes made by my clients is that they fail to factor into their budgets the amount they’ll need to repay every month. They assume, sometimes mistakenly, that they will be able to afford an extra $2000 or $4000 without much hassle. However, budgeting for your loan repayments will help you settle on a price point for your new home that you can afford.
BUDGET FOR HIDDEN COSTS
Buying a new home is a costly affair – but there are hidden costs that will take you by surprise if you haven’t factored them into your plans. The state will charge you stamp duty on the purchase price of your home, and the fee varies in different territories. Other costs include insurance, real estate agent fees, pest and building inspection fees, etc. But you can be sure that Phil at A2Z Securities will hold your hand and give you all the details of these fees. We guarantee that nothing will take you by surprise.
TAKE ADVANTAGE OF THE FIRST HOME OWNER GRANT
Each state offers you, the new home owner, a grant that you can use towards the purchase of your first home. With a grant ranging from $7,000 to $30,000, you will want to find out from us if you are eligible. And we will also help you with the application process as well.
You see, buying a home is a lot like planning to take a 6-month long trip around the world. If this is your first long trip, it’s not going to be easy planning, saving, booking and coordinating all the activities, accommodation and travel. The same goes for buying a home for the first time. Without the help of someone who’s been through this, is a professional, and has the skills, resources and knowledge to guide you, you may end up in big trouble.
For a confidential discussion about your options call us on (02) 9526 0999 or contact us.