How to get into your new home sooner
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- Published on Tuesday, 21 February 2012 11:38
With interest rates at a good level and the property market looking strong, there's never been a better time to build your new home. Here's some tips to help you get into your new home sooner.
DON'T WAIT: Enter the property market as soon as you can. With rental vacancies around 2.5 per cent, soaring rental prices that can be higher than mortgage repayments and a great range of affordable home and land package options, first home buyers should be looking at getting into the home buyer market now.
BUY WHAT YOU CAN AFFORD: There are 3 factors that affect housing affordability – location, home design and block size. Remember your first home doesn't have to be your dream home on the river front. You may have to make a few lifestyle compromises and buy something smaller that you can comfortable afford so you can take your first steps on the road to home ownership today. If you invest well you might be able to use the equity you build in your first home to upgrade later down the track.
USE A MORTGAGE BROKER: If you are a first home buyer it's worth considering using the services of a mortgage broker to guide you through the process and help you understand deposits, mortgages and banks. WA Housing Centre, has partnered with Loan Company to provide you with an exclusive range of home loans options. The Loan Company can assist you with a savings plan, help you reduce and consolidate your debts and find you a loan that suits your lifestyle and budget. This is a complimentary in-house service so there is no cost to you and because The Loan Company specialise in construction home loans you can guarantee you are getting the best advice and the right home loan for you, it also saves you time!
SAVING FOR A DEPOSIT: It may seem like a daunting task at first but a few simple tips can help to get you started. Firstly determine how much you need to save and set a timeframe. Pay off your credit cards and personal loans as soon as possible because these can reduce your borrowing capacity. Set up an automatic payment into a high interest savings account if you don't see the money, you won't miss it and look at options like the First Home Saver Account. Tighten your belt and eliminate some luxuries and most importantly the earlier you start the better so start saving now! The Loan Company also offer low deposit home loan options for first home buyers so be sure to check those out.
THE PARENTAL GUARANTEE: By using a percentage of the equity that your parents have built in their home, you can now buy a brand new home – deposit free! This means you can get into the property market now and start building equity in your own home. As the equity grows in your home the parental guarantee is removed, so everyone benefits. Now that's something worth looking into!
BUDDY UP: If you're not in a position to purchase your first home on your own, considering purchasing property with a friend or sibling. Co-ownership is one way to get your foot in the door and enables you to pool your savings for a deposit, combine your borrowing power to get a loan, share on going costs and start paying off a mortgage instead of rent.
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