Saving for a deposit, understanding what you should look for in a home and overcoming the feeling of FOMO are all concepts the new generation of homebuyers have yet experienced. As professionals in the home building space, we want to share some of our key tips and tricks to buying a home as a young Australian!
Deposits
A key step to saving for your first home is to set reachable, realistic saving goals and to track your progress to achieving these goals. Writing down your saving targets can help you visualise the end goal of building or buying your first home. Breaking your saving target down into a manageable figure will help you build more confidence around your finances. You should understand how to set limits and rules around your spending so it can help you make smart finance decisions in the future.
Plotting your progress can be really motivating if you can see evidence of the effort you’re making. Draw or create a visual representation of how you’re coming closer to achieving the goal you’ve set for yourself. Some ideas include a bar graph, a checklist or a colour-in table.
Sacrifices
Your first home marks the start of your homeownership journey, and with special benefits and financial schemes available only to first home buyers, it’s your best opportunity to set yourself up for a long-term investment. When planning for your first home, you must consider these three attributes: location, layout and lifestyle.
Making smart property decisions when planning for your first home will help you prepare for the future. Consider what suburb you want to live in and what property growth might look like in the next 10 to 15 years. It’s important to make sure that your home has a functional layout that is suitable for a growing family.
When a first-time buyer buys a house, they should be thinking about their life in the home and if it is suitable for the next family that will live in it. It is important to think about what would be appealing if the home becomes a rental property and what may be considered a deal breaker for future tenants.
Expectations and FOMO
FOMO or Fear Of Missing Out is a form of social anxiety that is caused by being absent from big events happening elsewhere. The Australian Property Market has recently experienced drastic growth in almost all aspects of the market, creating what new buyers might see as unattainable standards. For first home buyers, it is quite common to experience FOMO when trying their luck with the property market as they battle the feelings of potentially not fulfilling the dream of being a homeowner.
With rising median property prices creating more competition within the market, it’s understandable as to why new buyers might feel like trying to purchase a home is too big of a task. But do not fret! Here are three tips we believe can help you overcome the feeling of FOMO whilst you save for your first home:
- Focus on quality – Don’t lose sight of what matters to you in a home. Keep a wish list of what you’re wanting out of your first home but try not to get too attached to the details. Think of logistics and core reasoning behind your home purchase and why you want to buy that home.
- Don’t take internal blame for an external problem – The property market is only going to get more competitive as different buyer types look to take advantage of market opportunities. New home buyers should be careful not to take the responsibility for disadvantages in the real estate market that are beyond their control.
- Talk to a market expert – If you’re unsure about your situation and need some advice, look no further than the QPG Team! At QLD Property Group, we are dedicated to giving our clients unbiased and pressure-free support throughout the application and home buying process. Get in touch today for a non-obligatory chat with a property expert!