Owning your own home is the great Australian dream, yet for many these days that’s exactly what it can feel like – just a dream.
It used to be so easy, You’d live with your parents until you were 20-something, you’d drink instant coffee instead of takeaway lattes, you have tins of home brand tuna for lunch – eaten at your desk. Your colleagues knew not to ask you when collecting money for a farewell present or charity chocolate box.
You were saving for a deposit on a house – slogging away at it, cent by cent. Dollar by miserable dollar…
However, no matter where you are in Australia, buying a home to live in or as an investment actually isn’t impossible. And we’re just kidding about not having Avocado on toast for brunch. You can most definitely do both… with a little limitation.
Saving tips for first home-buyers:
- Prepare a budget and stick to it.
- Put money towards your home deposit first.
- Pay off your credit cards and any personal loans
- Record and analyse your expenditure over a month/quarter to reveal any more opportunities for savings.
- Look into your state governments First Home Owner Grant and check your eligibility.
Costs to consider when buying a home:
- Deposit – initial up front payment on exchange of contracts. Banks usually want you to have 20% to avoid borrowing over 80% of the purchase price and having to add on the hefty buyer’s mortgage insurance.
- Stamp duty. This will depend on your eligibility.
- Conveyancing costs which includes all legal advice and management of the entire transaction on your behalf from start to finish.
- Settlement costs such as a share of the rates, land tax and/or body corporate fees from the date you become the official ‘owner’.
Ready to buy your first home? Get in touch with our experienced team of Solicitors today and we’ll help you with the next steps to fulfilling your home-owners dream.
If you’re not ready just yet, give your parents a call and check if the spare room is free. We’ll hopefully chat to you very soon!