You’re in the market for your first home. You scour every source you can, educating yourself on all the aspects of the process you’ll need to know. But even when you’re practically an expert, you’re still faced with that inevitable wait until you’ve saved enough for your deposit. Help is at hand – our Gosford Branch Manager Greg Hancock lets you in on some simple things you can do to speed up your savings journey, so you can buy sooner.
When you decide to buy your first home, it can be easy to fall into the trap of impatience. Suddenly you’ll find yourself looking at glitzy, finished properties online and in the real estate section of the newspaper, and wanting to just go ahead and buy, as if it were as impulsive a purchase as a pack of gum.
My first piece of advice? Don’t do this.
Even though there are ways to make it happen sooner, it’s important to think of buying your first home as a journey – the length of the journey and the comfort of the ride is up to you.
Saving for a deposit can take some people years, and some people less than 12 months. It all depends on your income, your intended price range, and most of all – your determination and focus.
Here are my top 5 tips to help have you making an offer on your first home sooner.
- Know your limits – too often these days young first home buyers get blinded by the availability of credit to them and enter into ill-advised housing debts they can’t afford. It’s vital that you figure out how much per week you can afford to spend on your mortgage, and to stick to this figure. At The Greater, our responsible lending practices will ensure you’ll never find yourself over your head. And once you know this range of affordability, you can start to look out for the special or one-off properties in this price-bracket
- Do some research – Having a price range to work with lets you focus your attention on the best properties available, but it’s worth your while checking out various suburbs to see if any are on the up and up. Buying in a more affordable area which is scheduled to have major civil works such as new roads, schools or public amenities built can pay off down the track. Not only will you have the opportunity to sell for a boom price if the suburb takes off, your deposit won’t need to be as substantial of your initial purchase cost is lower.
- Set a Savings Goal – Once you have your price range, you’ll be able to work out how much you need for your deposit. Roughly 10-20% is standard, but 10% of your house price can seem like a big figure up front. Break your deposit down and track your savings journey using a Savings Goal calculator, like the one on The Greater’s website. Knowing exactly how long your savings path will be will motivate you to stay on track, and will encourage you to put away any extra cash you have left over before payday to get ahead.
- Practice makes perfect – Once you have your savings goal broken down into weekly installments, it’s a great idea to pretend you’re already paying a mortgage. Once you buy, your payments will be coming out regularly, so why not get into the swing of things now? Setting up direct debits into a high interest savings account, like The Greater's Bonus Saver, removes the temptation to cut corners and cheat, and will make you feel like a mortgage veteran when the time comes to buy.
- Tighten your belts – Lastly, take a look at your weekly spending habits, and see if there are some smaller costs you can remove for the sake of the greater good. If you spend a little less money now on things like expensive clothes, meals out and drinks at the pub, you’ll be surprised how much your savings balance can grow.
To use The Greater’s Savings Goal calculator or to set up Direct Debits within Internet Banking, check out our website for more information.
And if you’re interested in opening a Bonus Saver Account, you can jump the queue and start your savings journey today by applying online or through our Internet Banking Service.
Have you recently saved for a housing deposit? If you’ve got any great tips that helped on your journey to home ownership, leave them in the comments below.