A Noobs Guide to Buying A House
Buying a house is bloody expensive but it can also be very time consuming and, if not managed properly, can be a mental drain. Between the money, the forms, the terminology and then actually finding or building a place you like, it can all get a bit difficult. So, don’t worry if you’re feeling like you’ve got NFI, you’re not alone.
Here are the basics you need to know so you can start saving for a deposit and make 2020 the year you get on the property ladder:
Reduce any current debt
Whether it’s a credit card or a personal loan, review what you owe and make paying it off a priority. This will reduce interest payments but may also help with your borrowing capacity. If you have multiple places of debt, you may have the option of consolidating it into one loan to make it more manageable.
Review your finances and spending habits
This is where it gets a bit gnarly, because honestly, it’s boring and also a liiiittle confronting. Yes, you did really spend that much on food last year. Taking time to understand how you spend money and where you spend money will help you set realistic goals and determine where you could penny-pinch. Maybe you can forgo the Netflix membership or save money by using public transport. Buying with a partner? This is the time to have some serious conversations.
Explore the market
The home size, style and the location can all be big factors in the cost. Before you can think about buying you’ll need to know where you want to look and what you picture your home to look like. Use websites such as realestate.com to get an understanding of the market so you can set a realistic goal to work towards.
Set a savings goal
Now you know how much you have to work with and how much you need, you can make your savings goal. Set weekly, monthly and yearly targets and think about how you will keep track of your progress. Take into account your timeline as well as the percentage of the deposit you might need, the maximum you need is usually 20% of the property purchase price, however plenty of lenders allow just 5%. (Don’t forget with First Home Hero we match the First Home Deposit so you can get an extra $30K towards your dream home).
Get professional advice
Once you are on track with your savings and are clear on your goal home or location, consider talking to a professional to get an expert look at your situation. First Home Hero advisors can help you understand your position, tell you more about the available locations and explain the process of building your own home.
Are you ready to let us help you get your dream home? Get in contact by filling out the form.