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.
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.
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.
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.
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.
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.
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.
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