Steps for Purchasing Your First Home in Australia

Steps for Purchasing Your First Home in Australia

Are you thinking of purchasing your own home this year? It is so exciting!

The dream of owning a home faces a number of challenges, especially for youngsters in their twenties. The recent report from the Australian Institute of Health and Welfare shows that the rate at which young adults own a home has fallen to 36% in 2021 from 50% in 1971. Even for those aged 30-34 years, this has fallen from 64% to 60%. Yet, the dream of owning a home is still very much alive.

Listed below are the four steps you can consider to set yourself on the path to buying and owning your first home:

Be Smart with Money & Start Saving Early

Start your journey by saving money wisely to own a home. Consider following the 50:30:20 rule. The rule states that you allocate 50% of your income towards essential spends like daily needs and rent, 30% for optional ones like dining out or going on holidays, and the final 20% for your savings. This rule can assist you in reducing expenses and saving consistently, regardless of your income level.

Develop some good money habits with a few changes, such as cooking and eating food at home instead of ordering or dining out regularly, biking to work to save on fuel costs, or opting for get-togethers at homes rather than costly outings. These small adjustments can add up and help in saving for your purchase of a home.

Use Credit Wisely to Avoid Debt

It is advisable to understand the wise usage of credit cards considering the numerous benefits associated with them. However, accumulating too much credit by overspending and missing out on timely due payments of the credit cards you hold can negatively impact your credit score. In cases of a low credit score, you may find it difficult to secure a favorable home loan for your dream home.

Consider All the Costs of Buying a Home

The first-time buying process brings many costs other than the mortgage itself. Make sure to include all related costs in your considerations, which are:

  • Stamp Duty: This is a one-time state government tax computed from the price at which the property is bought.
  • Legal and Conveyancing Fees: Hiring a conveyancer specializing in real estate legalities helps manage paperwork, particularly the Deed of Transfer, and settles inquiries regarding property zoning and technical details.
  • House Inspection and Cleaning Costs: After finding a house you like, the best practice is to have the house inspected by professionals. This will provide insight into any kind of maintenance needed and what it might cost. Do not forget the expenses related to cleaning and fixing up the property. A deal that may look cheap can turn out to be very expensive if you choose a fixer-upper.

Get Help from a Home Loan Mortgage Broker

As brokers, we work with a panel of lenders—big banks right through to much smaller and even little-known lenders—to find the best home loan options for you. We do more than just compare home loans, we monitor the market and lender requirements as they change so that you can get trusted advice.

Even before you are ready to purchase, our team of experts can provide you with important information on the entire home buying process and work in close coordination with you to help you achieve your property goals. If you are planning to purchase this year, get in touch with us today to team up!

By following the above steps, you will surely be on your way to owning your first home. Happy house hunting!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.