While January is almost at an end, there is no need to abandon those New Year resolutions early! If transferring from tenant to home owner was on your list of life changes for 2013, we’re here to keep you heading in the right direction! Today’s Chisholm and Gamon blog is a preparation guide for achieving home ownership. With our tips up your sleeve, you’re sure to be toasting your entry into the property market very soon!
SHORT-TERM SACRIFICE & BUDGETING
Making short term sacrifice to achieve a long term goal is an approach worth applying to any life objective. Reining in the budget is not viewed as something enjoyable, particularly if one is used to spending without caution. The harsh truth is that the odds of winning the lottery are not in your favour, and when it comes to saving for a deposit some old fashion belt-tightening is more likely to help you achieve your dream of home ownership. If you are saving with a partner, ensure you commit to the challenge together and write down your budgets carefully – be accountable to one another. Don’t forget – there is also the option of moving in with your (agreeable) parents for a limited time to cut back on rent and bump-up your deposit. If that sounds like a remedy for mental breakdown, try other ways to cut back on expenditure – replace your weekly personal training session and Sunday catch-up drinks with a social game of soccer at the local park. You’ll have more money in your pocket, yet remain healthy (yes!) and connected to your friends whilst saving. The most important part of short-term sacrifice to achieve home ownership is that you set your budget and apply self-discipline.
VISIT A MORTGAGE BROKER
A financial planner or mortgage broker are both equipped with the expertise to advise you how much you require for a deposit and how much you will be able to loan. They can provide you with realistic pathways to help you achieve your goal. Once you’re sure of the amount you’ll need to save (also known as the ‘light at the end of the tunnel), it will be easier to work towards saving. A financial planner may also suggest new investment ideas. For example, you might consider purchasing in a more affordable area, while continuing to rent in an area you like. This option allows you to break into the property market sooner – a benefit worth real money in the long-run. Contact Chisholm and Gamon for further information on brokers we recommend.
TALK TO AN ESTATE AGENT
It is a good idea to build relationships with reputable estate agents based in the area you are seeking to purchase in. Let them know about the type of property you are looking for and your budget. They will be pleased to keep you on their database and call you when suitable properties become available. Real estate agents are also great advisors on market trends, allowing you to make the right choice for your budget and needs. They may also occasionally invite you to view properties before they ‘hit the market’ – offering you an exclusive opportunity to purchase prior to advertising to the wider buyer community.
There are a number of great opportunities to take advantage of when you’re a first home buyer. The government-sponsored first home owner grant is an obvious choice for those who qualify. A good financial advisor is sure to inform you of the best available incentives to match your situation. Good luck – we look forward to handing you the keys to your first home!