How to get into the property market
For a first home buyer or new investor, getting into the property market can be a challenge. Saving up the deposit required is no easy feat. Some find it tricky to get into the market however this doesn’t have to be the case. Here are a few simple and effective tips that might help you take the step in the right direction.
Save, Save and Save
It’s really important to get discipline with your savings, plan out a monthly budget and stick to it. Simple things like banking your tax returns, if the tax man is kind enough to give you a refund. Also looking into monthly expenditure which need not be. For example if you’ve got a gym membership and you’re not going 2 – 3 times a week it might be worth cancelling, saving the $15 – 20 per week and go for a walk around the block instead. Move back home with the oldies! Living with the parents will allow you to save 80 per cent of you income, especially if you’re working full time and have very little living expenses – you’ll build up a deposit in no time.
Instead of buying that new car and financing it over the next 5 years, sacrifice a little bit and look to buy something affordable that will get you from point A to B with little upkeep. Take the view of ‘short term pain’ will bring ‘long term gain’. If you’re working full time and really wanting to ramp up savings, you might even consider doing some casual work on the weekends. You might need to forgo some social and lifestyle perks – with determination and consistency you’ll be able to achieve your goal of property ownership in no time.
Are you looking to buy your dream home? That house 5 kilometres from the city, with a big yard, 3 bedrooms and lock up garage? There is certainly nothing wrong with this goal however taking another look at what you need from what you want can be the difference between getting in to the property market and not.Also if you were to look to start off small, like a 2 bed unit, you’d ensure that you wouldn’t be financially stretched. By going for something that’s extremely affordable you’ll be able to continue to build up savings, which will allow you to build a property or investment portfolio in the future.
If you’d like to sit down and go through some strategies, options and plan for the future feel free to contact me directly on 0410 000 689 – Nathan Vecchio
You might also be interested in top 10 tips for purchasing property.