Want to break into the property market faster? You have probably figured out the sooner you get into the market, the better, but have been putting the daunting process off. The good news is: we are here to help.
To help you get the ball rolling, we have broken down the most important steps that you need to be doing immediately break into the property market:
Do a budget – you won’t break into the property market without one
First thing’s first: you need to work out your lending capacity and how much deposit you will need to save. From there you can draw up your budget. The easiest place to start is to track every single dollar in and out over a period. Then you need to plan your timeline: when you would like to buy vs. when your budget will allow you to buy. Read our blog Helpful tips on budgeting to get you started. Or talk to a professional, we have experienced Financial Advisers that have the tools to help.
Consider property market government grants
You may be eligible for some government grants that can help you to break into the property market faster: first-home owners grant (FHOG), stamp duty exemption or concessions. There have been a number of changes in government grants recently so do your research and factor any possible grants into your budget and planning. A good place to start is on the State Revenue Office website or chat to one of our home loan experts who can do all the hard work for you.
Look at no deposit mortgage options
You may feel like you will never be able to save enough for a home deposit. Fear not, there are ways to get into the property market without a deposit which you can read more about on our website. You could consider a Guarantor Home Loan where a parent may allow you to use the equity in their home towards your mortgage or you could borrow a Personal Loan to cover the deposit amount. Obviously, there are strict qualifying requirements for both that you will need to consider.
Open a high-interest savings account
Start earning interest on your savings immediately, we recommend a Fixed Term Deposit as they earn the highest interest. Be sure to check, however, the minimum time your money will be inaccessible and whether it suits your budget and timeline. If you think you will reach your savings goal sooner then you may prefer a more flexible option such as an online savers account.
Consolidate your super and insurances
You may have super from previous employment in a long-lost account. Luckily, The ATO has a tool that will find any hidden super for you. The alternative is that once you’ve chosen the provider that’s right for you, then let them know you wish to consolidate any lost super and they will do it for you. Also look at consolidating your insurance policies such as income, car and home contents, you could save a heap here. Can you incorporate them into your super? Our Financial Advisors can help you here too. Also, did you know insurers will most likely match or beat competitor’s prices? So, shop around, there’s potentially some extra coin you can pocket here too.
Review your memberships
We bet that you have a gym membership that you never get time or find the motivation to use. Cancel it. Or if you are making use of it could you consider jogging or walking instead for the meantime? You will be surprised how much you can save by getting rid of unnecessary memberships.
Get a credit report check from Equifax and find out what your credit history looks like and how lenders view you. You may have a default on a phone bill that you didn’t even realise has affected your credit rating. Make sure you are always up to date on your bills as you will be surprised what can influence your chance of being approved for a loan.
Move back home
The quickest way to save up enough to break into the property market is to move back home. If you can, lean on you parents and get out of the renting trap. Or if your parents are unable to help, then see if you can find others who want to share the rent. Get rid of that home office or gym and put another border in there. Or if housemates are not your thing then downsize – sacrifice the spare room and private yard for a one bedroom further out from the CBD.
Do your Tax return
This may seem obvious, but if you still have those cheeky returns that you just can’t bring yourself to sit down and complete then get some help. Book that appointment and have a tax accountant submit your outstanding returns. Not only could there be extra money you could bank here but there could possibly be a tax debt that you have not factored into your budgets which could affect your plan. These sorts of things tend to turn around and bite at the worst time so make sure you have it covered.
Stick to your plan!
Finally, stick to your plan. It’s all well and good to make plans and promises, but if you don’t stick to them, you will never break into the property market.
If you would like to find out how we can help you break into the property market faster, then chat to one of our experts today.