First Home Buyers: New Year resolutions you should be implementing!

The last few years saw housing prices skyrocket to the highest they’ve ever been, however 2019 looks to present some small relief for home buyers with the market looking to settle down. If the past year is anything to go by, this could be the ideal time for first home buyers to break into the property market.

But landing your first home is no easy task, even in a favourable market. So if you’re one of the many Australians eager to buy, here are some resolutions to put you in the best position for property success.

Save towards a 20% deposit
There are home loans out there that let you borrow 95% of a property’s price, however having a deposit that’s 20% or more is ideal – it also means you won’t have to spring for lenders mortgage insurance. A larger deposit means you’re less likely to find yourself strained under the weight of your repayments since you’ve borrowed less.

Those looking to buy their first home will want to review their spending habits and trying to cut back on any unnecessary purchases. The sooner you get serious about saving, the sooner you can get a sizeable deposit going. Budgeting app’s are great way to track exactly what you’re spending and can give you a precise picture of how much those daily coffee’s and Ubers add up to.

Make sure your credit history is looking good!
When assessing your eligibility for a home loan, lenders usually want to see 3-6 months’ worth of bank statements. This means, if you’re not already on top of your bills and credit card repayments, now is a great time to start.

Think about long-term benefits
When purchasing your first property the smartest option is to view your first property as an investment. Afterall, it is the first step in an ongoing process to one day purchase your dream property.

Sometimes, finding a home that fits your current budget means lowering your expectations slightly and even looking outside of suburbs you may prefer. Upgrading down the track when your financial situation allows it.

‘Rentvesting’ is when you purchase a property with the intention of leasing it out as an investment, while you continue to rent in your preferred area. This has become an increasingly popular avenue for first homebuyers.

Ask for help if you need it
If you have been struggling to get together a deposit, don’t panic just yet! If yours parents or other family members own their own home and are willing to put it up as security it will greatly increase your application when looking to secure your home loan.

Know the Market!
Being aware of the property market trends may seem a little daunting, however it is one of the most important aspects when looking at purchasing a property.

Commentary is currently focusing on how low prices will go, with many analysts predicting downward trends for Sydney and Melbourne properties to continue into the foreseeable future. This provides first homebuyers with a great opportunity to break into a market they have previously been pushed out of.

Surround yourself with a team of professionals who can provide you with ongoing support and expertise in securing your financial future.

The Addisons Team are here to help!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loans are subject to lenders terms and conditions – fees, charges and eligibility criteria apply.