Saving for a home can be a daunting task. It can bring about all sorts of questions. How much money will I need? What will I have to sacrifice? How long will it take me to save? Bearing these questions in mind, if you want to get into your own home, when it comes to saving, there’s no time like the present.
The longer you leave it to start saving, the longer it will be before you’re in your own home. But don’t let that scare you, let that motivate you.
Think about the type of property you want to purchase; this will be a big factor in determining how much needs to be saved. Ask yourself what features you need in your home. Will it be large, or will something smaller suffice? Single or double storey? Where would you like to live? Consider your current circumstances, but also how they may change shortly. All of these factors can affect the savings target. It’s a good idea to consult a finance professional to gain a better insight into your financial position and potential.
Once you have a clear understanding of your buying power, start thinking about how much will be needed for a deposit. It’s a great start if you can save 20 per cent of the property price as a deposit, but if you want to get into the process sooner, there are other finance options available.
In addition to the deposit, you will also need to save some extra money for costs such as legal fees, and stamp duty. But, as a first home owner, you may also be eligible for the First Home Owners Grant, which is an excellent boost to your new home savings. Even if it’s just a small amount each week, start saving right away.
Stay tuned for Part 2 of Saving For Your First Home, where we’ll crunch some numbers and sprinkle some more savings knowledge on this topic. For more advice on the home buying process, visit The Guide, and our Articles.