Buying a house is probably the biggest financial commitment you’ll ever make; you don’t want to make it without planning thoroughly. Let’s talk budgeting.
For most people, buying a house is the most significant financial commitment you’ll ever make. Unless you’ve got major plans like owning a large business or something of that nature, it doesn’t get much bigger than owning your own piece of residential property.
This being the case, you don’t want to dive into the process without planning thoroughly ahead of time. Do you have a budget in mind? How much can you afford to pay – not just now, in the form of a deposit, but also down the road as you’re making mortgage repayments? You should draw up a plan that’s as detailed as possible.
Getting into a rhythm with saving
To ensure you’ll be able to afford the deposit and all the mortgage repayments that lie ahead, you’ll want to get started by establishing a regular routine for saving. If you can set aside a substantial amount of your paycheck each month, that will put you on the right track, as well as prove your financial savvy to sellers and lenders.
Once you’ve started to accumulate some real money, it’s time to start shopping around. RealEstate.com.au recommends that once you’ve got about 5 per cent of the purchase price of a reasonable home saved up, it’s time to start talking to brokers about finding the right place for you.
Keeping your spending under control
In order to stick with the saving plan you’ve established, you’ll need to rein in your spending. Domain.com.au advises setting a maximum amount you’re willing to spend each month on necessities like food and more discretionary things like weekend getaways; if you stick within your limits and don’t abuse your credit, it will be easier to maintain good habits.
Learn to put your credit card back in your wallet and rein in the spending. Throughout the saving process, it’s wise to regularly review your bank account and make sure you’re saving the amount you plan to each month. If you’re not prepared to handle this process yourself, good home loan brokers can certainly help.
Getting professional guidance with budgeting
For Australians who have never saved for a major purchase like a house before, the process can be overwhelming. Fortunately, our team of specialists can help you with your budgeting and planning process.
If there’s anything holding you back from owning your dream home, such as bad credit or a history of irresponsible spending, we can help you identify such problems and address them. With our team on your side, you’ll be well on your way to owning a home once and for all.