How you can buy your first home

So you’ve taken a look around and realise that all of your friends are married with children and about to drop the deposit on their first home. By this point, naysayers may have convinced you the Australian dream of homeownership has long slipped away from you. Fortunately, that’s not the case. There are a number of initiatives and strategies that can be employed to grab ahold of your goals once again.

If you’re lost and wondering why you’ve gotten your foot on the property ladder, here are a few questions to ask yourself.

Or get in touch and work with a planner to help you buy your first home.

Do I really want to own a home?

Before you set out to spend a small fortune on your very first home, it’s wise to do a little introspection and figure out if homeownership is actually right for you.

The benefits of homeownership

Security and certainty around your living situation.
Freedom to change your property or acquire a pet as you please.
Ownership of an asset which hopefully increases in value.

Person bundled up with coffee and pet dog

Rent or buy, your definition of home comes down to you.

The benefits of renting

Greater short-term financial freedom, as you won’t pay interest on a loan.
You’re more likely to afford the suburb you want as you won’t pay ownership expenses.
Less maintenance responsibility.

As you can see, both renting and owning a home have considerable upsides. The benefits most appealing to you will depend on your aspirations and where you are in life.

Understanding your deeper motivation is crucial to shaping your financial plan for the future and our advisers here at Invest Blue are ready to help you.

Am I ready to buy a home?

Do your research

It’s crucial that you understand how acquisition and home loans work before you get onto the property ladder. Take the time to really wrap your head around the many concepts in real estate and mortgages. Consider talking to a financial planner for professional help with drawing up a course of action.

Do some research before you buy your first home so you know exactly what you’re getting into.

Financial readiness

Your adviser can also help you to know when you’re fiscally ready to take the plunge into a property. In general, you’ll need 5 to 20 percent of the total value of the property before you can take out a mortgage. However, it’s wise to put down more than 20 percent to avoid paying lender’s mortgage insurance.

What can I do to get help with my first home?

Seek help from outside

When it comes to financial planning, we don’t believe in a cookie cutter approach.

According to HSBC, 36 percent of millennial homeowners turned to their parents as a source of funding. That’s not always an option, however, so a first home owner grant may be the best option for you. You can also check out our tips for working up a deposit here.

Get professional guidance

Being able to look ahead and know you’re on the right path can help guide you to success. Thirty-nine percent of Australian homeowners who employ a 15-20 year financial plan report they’ve achieved some of their goals in the last six months, says ASIC.

Download your First Home Buyers Guide

When it comes to financial planning, we don’t believe in a cookie cutter approach. There are no correct goals or strategies that can apply to every Australian, so let us help find the path that’s perfect just for you. Contact us today for personal financial guidance.

What you need to know

This information is provided by Invest Blue Limited (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.