To make the dream of home ownership a reality, it’s important to form a strategy to manage your money effectively and make smart choices. See a professional financial adviser or consult your mortgage broker before you start your search so you know exactly what your budget is.
Here are some additional tips to help you save:
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Be disciplined with money – Not just in the obvious sense of saving, or resisting to buy the expensive pair of shoes that you’ve had your eye on. Rather, be diligent about which types of accounts you use - seek out high-interest bearing accounts. These options won’t always allow quick access to cash, but long term saving is a discipline that will serve you across an entire lifetime.
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Use a mortgage broker – When borrowing money for a home for the first time, the whole process can be overwhelming. Mortgage brokers will make sense of everything for you. They have an array of products to choose from, which they’ll explain to you then guide you through your spending limit and help you make a loan application.
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Use the first homeowner schemes – Every state currently has grants available that can offer up to a $10,000 grant if you move into a brand new property. Make sure you also look into the available options to minimise your stamp duty.
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Use your Superannuation - First-time buyers can also use the First Home Super Saver Scheme, which allows you to make additional contributions to your superannuation scheme to save for a deposit.
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Pay off your principal – Paying a little extra on your mortgage each month can take years off your overall mortgage schedule. Smaller principals mean you pay less interest. So, this strategy creates a virtuous, continuous circle until the debt is gone.
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Home improvements – When you move into your new home there’ll always be a few improvements that you’ll want to get done. If you’re not a DIY expert, then be sure to hire quality contractors. When it comes to trade work, getting the job done right the first time will save you money in the long run.
