Saving for your first home takes commitment and financial discipline, but it doesn’t mean that you will miss out on living your life to its fullest. Creating a perfect budget to stick to, will ensure you can focus on increasing your savings funds. We have explored some budgeting options for you to implement in your first home buying journey.
Knowing what your concrete end goal is, and aiming for that end goal is an effective way to successfully save for your first home. Simply ‘just saving’ is purposeless and you will find you aren’t serious to sticking to your budget.
Many banks have a borrowing calculator on their websites which you can use to see what you can potentially afford based on your income and expenses. Another option is to contact a Mortgage Broker and have them guide you on your borrowing capacity and the % you will need to have saved as a deposit.
This will help you picture in your mind exactly what you are saving for, and you’re much more likely to stick to your budget and achieve your end goal.
Other things to factor in when saving for your first home is whether you qualify for the First Home Buyer Grant, stamp duty and other upfront costs that may be involved when purchasing a property. It is important to do your due diligence when purchasing a property and do as much research as you can. Some governments offer stamp duty concessions for first home buyers, as long as they meet the criteria. Finding out if you do qualify for any home buyer schemes, you should factor these into your budgeting and you may need to save less than you originally thought. You should also budget for solicitor or conveyancer’s fees and other upfront costs.
Allowing yourself a realistic timeframe to save for your end goal is your next plan of attack when creating your budget. Things to consider are your monthly or weekly income, living costs and calculating the $X amount you can save is feasible.
The next step is to make sure you put this amount away each month. The best way to do this is to pay your savings into a separate account automatically each month before you have the chance to touch them.
With the money left over, it’s time to look at where you can make savings in your budget so that you balance the books and live within your means. Some tips for doing this are to:
- Shop around for better deals on your mobile phone, insurance and other regular ongoing costs
- Cancel all your subscriptions and only renew them when you need to
- Pay your bills on time or upfront if this leads to savings
You should also be sure to pay off any credit cards you owe money on. If you’re only paying the minimum each month you’re probably also paying high interest and this can get in the way of saving.
Do you need help navigating your next property purchase? Talk to Chamberlain Property Advocates about how we can help you find your dream home.
Ask about our Buyer Advocacy Service, where we provide you with trusted impartial advice and WE MAKE IT EASY to protect your interests through out the entire selling process.
To book a free 30-minute consultation, simply click here and choose a time convenient to you. Alternatively, give me a call on 03 9686 2288 to discuss how I can help.
