Planning to buy your first home, what to think about?
There is a clear playbook to look at as you prepare to start your first home journey. Below are the ‘must-do’s’ as you plan your first home.
First Home Deposit: Typically, lenders need you to have at least a 5% deposit ready to go before you start the process when you buy your first home. It’s important to have more than that, as high as 15-20% is preferred. You will also need to demonstrate 6-months of responsible, stable savings to show the lending institution you are a trustworthy first home client.
Saving For Your Deposit: Get that deposit goal finished within a half year time frame, you’ll need to set aside a certain amount of cash per week. Don’t ever spent it, lock it away and if you have to live like a hermit for a few months, it’ll be worth it in the long term.
Reduce Your Debt: Before you get started, get rid of that credit card debt. Financial institutions will look favourably on a first home buyer with a good credit history and low debts.
Government Grants: Investigate the state government grant available to you. In Western Australia, first home buyers are eligible for a $10,000 grant toward their first home, as long as the property is being built or purchased off the plan.
Income: Ask you boss for a pay rise, do odd jobs outside of your normal work, or see if you set up a passive income stream. Thanks to the internet, you might be able to sell things on eBay or start up a small business online to sell goods.
Shop around: Take a good look at what kind of home packages are competitive, look at loans to suit your long term goals.
Set Your Goals: Set clear goals for your career, income and savings. You need certainty about what kind of income your’ going to have in the medium to long term and how much you’ll have for your first home deposit and your ability to pay your loan off in good time.
What to know more about getting ready for your first home? Contact Aussie Living Homes, Western Australia’s first home specialists.