A new year is a time when a lot of people choose to reflect on their previous year and think about what they want to accomplish in the coming year. It brings so much excitement and promise. For many younger generations, getting into their first property is the most common goal. Whether your goal is to learn about the property market, save your first deposit, or buy your first home, Pearl Financial aims to help 100 Australian first home buyers, like you, to step into the property market within the next two years.
While it may be great to start working on your goal this year, you should consider it as a long term goal rather than a one-year goal. To help you out with your new year goal, here are the 3 steps to get you started. Acknowledging that each individual’s circumstance may vary, you can simply pick on the steps that are relevant to your situation.
Saving is undeniably challenging which makes saving for a home deposit twice as challenging. It usually takes many years, but you definitely have to start somewhere. The most important thing is to make sure that your finances are in order to be able to assess how much you can borrow and repay over the course of your mortgage. You can use borrowing power calculator to get an estimate based on details you’ve provided.
You will likely be charged Lenders Mortgage Insurance (LMI) if you are going to borrow more than 80% of the property’s value. The cost will vary depending on the percentage of the property value you borrow and on your loan amount. Aside from considering LMI, there are actually other ways on how you can get into property market. You can get a trusted and reliable co-borrower or you can ask your parent to be your guarantor. It’s not impossible for you to get into your first property. It’s either you start saving for a larger amount of deposit or you find a way to cut down the amount you need for a deposit. Here are more tips to help you with your first home deposit.
You might want to make some preliminary inquiries on securing a home loan once you’ve saved a significant amount of your home deposit. Talking to your lender about how much you can borrow to buy your firsts home can inform you of your final budget. Knowing how much your final budget is will help you consider the location you want to live in and the type of property you want to buy. There are different types of properties being offered in Australia. You can learn more about buying off the plan here.
You can learn more about the property market and homeownership by reading property related news and tips, attending property seminars, and searching for properties online. With the property prices always moving and its laws changing, you must keep yourself updated. Aside from those things, you’ve probably heard of the government assistance available for first home buyers, which is called the First Home Owners Grant (FHOG).
You can start working on these steps and if you feel like there are things you’re uncertain of, Pearl Financial would definitely love to be of help. Read on how Pearl Financial helped Nina from Prestons NSW purchase her first property with ALMOST ZERO deposit… you could be next!
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