4 steps to take now for buying your first home in 2024
Thinking about purchasing your own home this year? How exciting! The dream of homeownership is facing some new challenges, especially for those in their twenties. Recent data from the Australian Institute of Health and Welfare shows the rate of young adults owning a home dropped from 50% in 1971 to only 36% in the latest 2021 Census. Even for those aged 30–34, it fell from 64% to 60%.
But the dream of having your own home is still very much alive!
Here are 4 steps that you can take now, to put you on the path to buying your future home:
1. Start saving early and be smart with money
Begin your journey to owning a home by saving money wisely. Consider following the 50:30:20 rule – put half your income toward essential items like food and rent, then split the rest between fun stuff (holidays, eating out) and savings. Following this rule has the potential to help you save consistently, no matter how much you make.
Build good money habits with simple changes, like cooking at home instead of ordering takeout, biking to work to save on petrol, or choosing home get-togethers over expensive outings to save up for your home deposit!
2. Use credit wisely to avoid debt
Credit cards can be handy, but don’t go overboard. Missing payments or racking up too much debt not only messes with your finances but also hurts your credit score. A bad credit score can make it tough to get the right home loan when you find your dream home!
3. Consider all the costs of buying a home
Buying your first home means dealing with more costs than just your mortgage. Think about all the associated costs such as:
- Stamp duty: Stamp duty is a one-off state government tax that’s based on the purchase price of the property.
- Legal and conveyancing fees: Get a conveyancer, specialised in real estate legalities, to manage paperwork, including the Deed of Transfer. They can address inquiries about property zoning and technical details.
- House inspection and cleaning costs: Once you pick a home, hire professionals to check its condition. This helps you know what maintenance it needs and how much it might cost. Don’t forget the expenses for cleaning and fixing up the property. A cheap deal might turn into a money pit if you go for a fixer-upper!
4. Get help from a mortgage broker
As a mortgage broker, our role is to work closely with a panel of lenders — from the big banks, to the smaller lenders you may not be as familiar with — to ‘shop around’ in the home loan market on your behalf. But our job isn’t just about comparing home loans. We stay on top of market trends and changing lender requirements, so you can be confident in the recommendations we provide.
Even before you are ready to buy a home, we can offer valuable support by explaining the home buying process and working with you to ensure you achieve your property goals.
So, if you’re planning on making your home ownership dreams a reality this year, get in touch to team up with us today!