Saving for a house deposit and finally purchasing a home can seem like a marathon task, but you might already be prepared enough? Here are some signs that indicate you might be closer to your own home than you thought.
1. Steady employment
Having fulfilling, secure employment that provides you with a healthy bank balance is an essential first step to owning a home. Being able to provide proof of a steady income to a bank is one sign that you might be closer than you think!
2. Deposit saved
House deposits can vary, but often 20% of the house cost is expected as a down payment. First home buyers may be able to access the First Homeowners Grant, which can give you just that bit extra that you might need. Make sure you check in with your agent who can help guide you to any information you need.
If you are relying on the grant to be able to afford your home, take the time to consider if you will be able to cope with other expenses on top of a mortgage and the general cost of living.
3. Emergency funds & savings
Make sure you consider the ongoing costs of owning a home and what unexpected costs that might arise in the future. Will a sudden emergency put you completely underwater? Being able to demonstrate regular saving activity in your accounts will get you one more step closer to your dream home.
4. Your debt is under control & credit score is healthy
If you are fresh out of university and still have $30,000 of HECS racked up or still have a stack of debt owing on a car, or credit card, maybe reconsider purchasing a home. If you’ve got minimal debt remaining on your cards, personal loans or car loans, you’ll be in a much better position to get a home loan and experience less of a struggle by not having to make repayments each week across numerous debts, on top of a mortgage.
5. Not looking to move for a few years ahead
Buying is generally better for your bottom line than renting, but only if you are expecting to stay at least 3-5 years. If you feel like you are ready to settle down in an area for a while, you might be ready to buy.
6. You are ready for all the nitty-gritty bits
Buying a home is an exciting time but reading through and sorting out all the contracts may not be so fun. It’s a necessary evil though, so make sure you are ready to engage a competent lawyer you trust to help make the process as smooth as possible.
Owning a home means that you are responsible for all maintenance and repairs. Be careful with DIY jobs as you don’t want to cause more harm than good! Try to be prepared and have a list of trades, ask your agent and friends around town who they would recommend or post in a local community group.
Buying a home isn’t just about the upfront deposit required, make sure you do your research into council rates, stamp duty, and utilities. These costs can add up and become overwhelming quickly if you aren’t expecting them. If you’ve already considered this, you should be feeling pretty confident.
7. You’ve done your research
Investigating what house prices are like in your desired neighbourhood is a great place to start, but you should also consider whether the area is looking like it might gain or lose some value over time.
This article is for entertainment and informational purposes only. The article is not meant to be misconstrued as financial, legal or tax advice. Reach out to a trusted and qualified professional for advice relating to these matters.