So you’ve set your New Year’s Resolutions, what’s next? Here are four tips to achieving your homeownership goals in 2022.
Education
Perhaps the best way to kickstart your new goals is to research into some of the obstacles you might face as you work towards your target. For example, if your aim is to save enough money for your first home deposit, you might want to consider reigning in unnecessary expenditure or planning in advance. Knowing what events are on the horizon will help avoid last minute overspending.
Educating yourself on the requirements and regulations of Government Grants and knowing your benefits you are entitled to as a first home buyer will greatly assist on your homeownership journey.
Each State and Territory have their own eligibility requirements that you as a buyer must meet in order to receive Government assistance. Understanding what is happening in the industry and how this might impact your situation, can put you ahead of the rest when your time to buy is here.
Seek Advice from Current Homeowners
It is important to seek advice and support from those close to you as you. Reaching your savings milestones can be a difficult task for some, so having the extra encouragement can be a confidence booster.
Gathering advice from the homebuying experiences of others is another great way to gain insight into the process. Although buying a home might have been different in the time your parents and grandparents bought theirs, their guidance and support may give you the confidence you need to keep pushing towards your goal.
Seeking to understand the experiences of others can help you identify some of the do’s and don’ts of property buying. Pinpointing what went right and wrong in their situation can assist you as you venture on your own journey. However, be reminded that everyone’s experiences are different and that your outcome will be different.
Understand What You Want in a Home
Regardless of your new year resolutions, your first home marks the start of your homeownership journey. 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.
- Consider what suburb you want to live in and what property growth might look like in the next 10 to 15 years.
- If you’re looking to buy in high-return cities in South East Queensland such as Ipswich, consider how property growth might spread as the population grows.
- It’s important that the home contains features that are suitable for your lifestyle, as well as future tenants if you decide to turn the home into an investment property.
Making smart property decisions when planning for your first home will help you prepare for the future.
Be Kind To Yourself
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.
Purchasing a home is a big deal, so you should treat your experience as such. As you overcome the challenges of saving a deposit and planning for your future, remember that what you’re doing will be worth it in the long run.
As you achieve your saving milestones or other notable stages of your home buying journey, reward yourself.
Be Realistic about Saving for a Down Payment
Most experts advise saving 20% for a down payment on a home. If that is too much of a stretch, work backwards and plan for 5% more than the minimum you can get away with. Saving that extra money will make the difference between getting approved and denied for a loan.
Create a Plan for Your Timeline
This may include any market research you need on a possible home purchase, getting pre-qualified or pre-approved for financing, saving up enough money for a down payment, and preparing yourself financially to be able to afford homeownership over time.
Take Advantage of Government Initiatives
First Home Owner Grant (FHOG) is an Australian Government Grant home buyers up to $15,000 FHOG (First Home Owner Grant) towards both buying and building a new house, unit or townhouse valued at less than $750,000.
The First Home Guarantee will help you buy or build your first home with a low deposit of 5% allowing you to get into your new home sooner. It also reduces the amount of deposit you need to save by making a contribution towards the deposit required for your home loan.
The Family Home Guarantee is specifically designed for families with dependent children living at home, who want to make the transition to a more suitable family home without risking their existing assets such as superannuation or investments.
If you want to achieve homeownership in 2022, click here to receive a Free Homeownership Assessment.