Buying your first home is a very big step, and one that should not be taken lightly. If you are currently looking to purchase your first piece of real estate in Australia you may go through many emotional and financial changes. Buying your first home doesn’t need to be a hassle or a nightmare. If it is done right, purchasing your first piece of real estate can be a very rewarding and pleasant experience. Here are a few tips to get you on your way.
Save Before You Buy
It is best to have some kind of a deposit saved up before you purchase a home. A good figure to shoot for is 5% of the purchase price of the property. If you don’t have that kind of money saved up for your deposit you can still buy a home. Some things you will want to do are:
- Track your expenses to determine where your money is going. A good way to do this is by writing down everything you spend money on for thirty days. Everything. Even a pack of gum should be written down. This will show you where your money is going and where you can reduce your spending and save more money
- Once you have determined where your money is going make up a budget and stick with it.
- Clear up any and all credit card debt as soon as possible to help your credit score. This will also help you to be able to afford your mortgage payments by not having credit card payments to make every month.
- Try to save as much money as you can by finding high interest savings accounts.
If you are able to show your financier that you have a history of savings, responsible repayment ethics and that you are serious about money matters than you will have an easier time when you go to get a mortgage loan for your new home.
Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 – 2008
Tags: Australia, buy first home, buying a home, first home, mortgage, Property, Real Estate
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Hi Sean,
I love this advice. Tracking your expenses is an eye opening experience. You’ll be amazed at where your money goes and how much things actually cost when you’re paying attention.
I used to work next door to a coffee shop. By the time I bought a couple of coffees each day and my lunch; I was spending the better part of $15/day. That money really starts to add up. So, I gave up the coffee and started taking my lunch to work. Tough habit to break though.