So you're thinking about buying your first home? Well, the first step to a major purchase like this is, of course, saving. And, according to MoneySmart, 48 per cent of Australians who are saving, are doing so for a home.
You know that saving for a house is serious business, more serious than saving for that cross-country road trip, at least! It is a massive financial commitment. That said, it's hard to know exactly where to begin cutting back in your budget. Make 2017 the year you start seriously saving for your first home with these three tips.
If you have debt, get rid of it. If you don't have debt, keep it that way. You should always be on top of your credit history, as this is incredibly important to buying your first home. When you reliably pay off your debts, you can increase the amount of money you can borrow for a better home. Of course, it's equally important to ensure you're picking a home that is realistic to your budget!
Take a look around you, do you need all the space you have? That big apartment might have been attractive before you were saving for a home, but you can save considerably if you just live in smaller apartment as you save for your bigger house. Check out the transportation as well, if public services are readily available, it might be worth selling the car. Getting rid of those costs – the car insurance, gas, repairs, etc. – will help reduce your monthly spending considerably.
This is saving for anything 101. It's a good idea to keep track of all the money you're spending on things that aren't essentials. Attempt to cut back on anything that isn't rent, utilities, food or whatever it is that would hurt your credit score if you stopped paying for it. Of course, this doesn't mean you need to stop having fun – just keep have a budget of activities you want to do month to month and stick to it so you don't go overboard. Sure, that new vase would look great in your new place, but you don't have that place yet, so it's better to hold off until you do!
If you're thinking about saving for your first place, get in contact with our knowledgeable team here at Ray White Bunbury. We'll help you throughout your home-buying journey.