With the rise in house prices its getting more difficult for first time buyers to climb on the property ladder. Also, gone are the days when you could score 100 per cent loan. Banks and lenders require more evidence to prove you can afford mortgage. To make the Australian dream a reality and own a piece of land you will need to start saving up.
The first home owner grant for (new homes) will get you going with $10,000 (as of 1 January 2014) towards your new home. The First Home – New Home Scheme also provides stamp duty concessions on transfer duty. For more details about the First Home – New Home Scheme contact the NSW Office of State Revenue.
1.Pay off any debt
Try and pay off any debts you have, whether it be your outstanding personal loans or credit card debts. Paying off your debts has two advantages one is you’ll have extra cash in your pocket to put towards your mortgage repayments and it will increase the amount of money a lender can offer you to borrow.
2.Save 10 per cent of salary
This has always been a good tip and great if you can be disciplined, you will slowly but surely build wealth over time. If you can open a separate bank account where you can deposit a 10% of your salary. Most banks will offer an automatic savings plan where you can arrange a portion of your salary deposited fortnightly or monthly into your nominated savings account.
3.Cut back on extras
Cutting back on luxuries and budgeting are not exactly sexy, but having control over finances can help you save for deposit. Make list of your essential expenses such as food, petrol, rent and subtract the difference of your income. Whatever cash is remaining can be deposited in your high-interest savings account. Try to cut out any non-essential costs or downgrade any luxuries from your lifestyle. Be careful not to make your budget too tight or you might fall in the trap of not being able to reach your goal. Perhaps allocate a fixed amount to spend on extra items.
5.Move back in with your family
Moving back home to live with your parent might not sound appealing, but it’s the most effective way for you to enter the property market. Renting a place is possibly the largest chunk of your expenses, so by moving back home you’ll increase your savings quite dramatically.
6. Sell your house items
While having a garage sale was the way to sell your old stuff, the emergence of eBay is a highly convenient to sell your unwanted household items and generate money. CNET Australia has some excellent tips to help you sell on eBay.
View Dixon Homes Hunter Valley house and land listings to get an idea of prices we offer. Speak to one of our Hunter Valley representatives on 1300 10 10 10 to help you get stated with first new home.