Advice for first homebuyers

Analaura Luna

Buying one’s first home is one of the great milestones in life. It’s also a major investment. There’s excitement, there’s trepidation (can I manage the financial commitment?), there’s responsibility. But with the right planning and strategy, your home will not only provide comfortable accommodation for your family, but can return significant financial gains.  The home has been the single most important wealth creators for the vast majority of Australians.

It is important to do homework and to prepare carefully: the process can be complex, and there are many traps for the unwary. Mistakes can be costly, even devastating!

Simply put; the larger the deposit you save for your property, the more choice you will have in buying the property you want. It will also provide you with peace of mind. Nothing can be more worrying than stretching oneself beyond your comfortable level of repayments in a home purchase. It can set up stresses that will impinge on the quality of your life and that of your family.

A savings history is essential. It will provide the deposit and it will show lenders that you are capable of saving and therefore meeting mortgage repayments. Save 20% of the purchase price as a deposit.  A few years of less than ideal accommodation when you are single or a childless couple could make a huge difference to your deposit and give you comfort when you have a family to support.

Incentives offered by government are a “leg up” on to the property ladder. Here, the First Home Owner’s  Grant offers up to $21,000 and, depending on which state you live in, concessions are also available on stamp duty for people buying or building their first home, or buying vacant land on which to build their first home.

Start searching online now and get motivated. And at an early stage seek out a reliable broker to give you a run down on the mortgage advice you need.

Author's Biography

Analaura Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration.