Buying your First Home can be a difficult process. So many questions: do I qualify for a loan? Should I buy a unit, house or a townhouse? Which suburbs should I look at? What is the process? Who can I trust? How much can I borrow? What are the repayments? The list of potential questions may seem endless.
With prices rising, and constant media attention, it may also seem to be getting harder and harder to get in the market.
But like most things in life, you need to have a plan if you are going to find a way to get on the property cycle and then hang on!
Let’s face it, it will be hard for most, you need to budget, watch your spending and your first property probably won’t be your forever home. Once you buy, try to add some value by renovating or landscaping and with time your home will increase with the market and your loan balance will reduce as you make repayments, particularly if you can pay extra every week, even $5 extra a week will make a difference over time.
Your income should increase as you get more experience and you seek promotions or just get better at your job. If you are self-employed and can produce more for less time or expenditure as you become more experienced and learn from mistakes, profits should increase and you can potentially pay yourself more income.
You should also review all of your lending on a regular basis to make sure you are not paying more than you need to by getting the lowest interest rates available.
With a plan and a professional team of advisers around you to keep you on track, you will get ahead and the pain and sacrifice to get that first home will be worth it. In time you will create equity and you will be able to put this towards a forever home or an investment or both!
Get started today, talk with us and we will help you put a plan in place.
Contributor: Grant Jacques – Director, Jacques Financial Group