How long do you think it's going to take to have enough money to buy real estate? Whether you're doing it as an investment or using first-home buyer grants for the family home, it's a long process.
In fact, research from Finder has revealed that one-third of Australians will be saving for more than five years before they can get a home loan. On top of this, 11 per cent had been saving for more than a decade before they bought. How can you adjust your financial planning to cut this time down and get on the ladder sooner?
Pick your spot carefully
When you decide it's time to embark on your financial journey with property you have to remember it's a long-term process. Hardly anyone gets their dream home the first time around – it takes a lengthy period of saving, investing and leveraging equity to get the home you truly want.
By that token, sometimes it's a good idea to make your first home purchase wherever you can – rather than where you prefer to live. For example – a 2016 BankWest report indicated that in Tasmania, it only takes a couple 2.8 years to save for a home. In WA and SA, the average figures are 3.5 and 3.6 years respectively.
Choosing somewhere with a lower entry price point, perhaps outer suburbs of your preferred city, can see you get on the real estate ladder much sooner.
Consolidate everything you can
If owning your own home is something that you truly want, then make sure your daily actions back that dream up. We often see clients who, through the process of working with us, realise that their financial behaviours don't support the things they value the most. It is a common mistake and an easy one to make. Be clear about what you want by setting clear goals.
There are many options available that can help you get started on a property investment or first home buying journey. For example, you could minimise debt by consolidating it, or set out a clear budget that removes spending in areas less important to you and then funneling that money into paying down debt or fortifying your savings.
You can also look for home loans that only require a 10 per cent deposit rather than 20 per cent, although you will have to contend with Lenders Mortgage Insurance in this instance. First home owner grants, guarantors and professional financial advice can all put you on the right track. Meeting with a lending specialist can also help you understand what you need to do. Cory and Brittany are clients of ours who landed their first home recently with our support.
There's no real need for you to join that percentage of Australians waiting five or even 10 years to buy a property. It's the first step on the way to creating wealth – it doesn't have to be a giant leap for mankind.
Rather than wait until 2027 before you buy, talk to the team at Invest Blue and see how your financial situation could be accelerated
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