Thinking about purchasing your own home this year? How exciting!Â
The dream of homeownership is facing new challenges, particularly for those in their twenties. Recent data from the Australian Institute of Health and Welfare reveals a decline in the rate of young adults owning a home—from 50% in 1971 to just 36% in the latest 2021 Census. Even for those aged 30–34, the rate has fallen from 64% to 60%.
Despite these challenges, the dream of having your own home is still very much alive! Here are four actionable steps you can take now to put yourself on the path to buying your future home:
Start Saving Early and Be Smart with Money: Begin your homeownership journey by saving money wisely. Embrace the 50:30:20 rule—allocate half your income toward essential items like food and rent, then divide the remainder between leisure activities and savings. This rule has the potential to help you save consistently, regardless of your income. Build good money habits through simple changes like cooking at home, biking to work, or choosing affordable home gatherings over expensive outings to boost your home deposit.
Use Credit Wisely to Avoid Debt: While credit cards can be convenient, it's crucial not to go overboard. Missing payments or accumulating too much debt not only affects your finances but also harms your credit score. A poor credit score can make it challenging to secure the right home loan when you find your dream home.
Consider All Costs of Buying a Home: Purchasing your first home involves more than just dealing with a mortgage. Factor in additional costs such as:
Stamp duty: A one-off state government tax based on the property's purchase price.
Legal and conveyancing fees: Engage a conveyancer specialized in real estate legalities to handle paperwork, including the Deed of Transfer.
House inspection and cleaning costs: Invest in professionals to assess the property's condition, revealing potential maintenance needs and associated costs. Don't overlook expenses for cleaning and fixing up the property, as a seemingly cheap deal might turn into a money pit if you choose a fixer-upper.
Get Help from a Mortgage Broker: As a mortgage broker, our role is to closely work with a panel of lenders—from major banks to smaller ones you may not be familiar with—to 'shop around' in the home loan market on your behalf. Beyond comparing home loans, we stay on top of market trends and changing lender requirements, ensuring you receive informed recommendations.
Even before you're ready to buy a home, we offer valuable support by explaining the home buying process and collaborating with you to achieve your property goals.
If you're determined to turn your homeownership dreams into reality this year, get in touch to team up with us today!