Sometimes it can seem like the odds are against you, with high house prices and increasing costs of living. But the Australian dream is still strong and your own home is not out of reach.
There’s a saying that entrepreneurship is living like most people won’t, so you can spend the rest of your life like most people can’t.
Well, home ownership is like owning your own business. Not everyone will, but you can if you’re realistic, decide on your priorities, make a plan and stay focused.
When you’re working towards a goal like owning your own home, you need to be realistic.
First, use a home loan calculator to work out how much you can afford to borrow on your income.
Research the property market and find out how much it will cost for a house which fits your needs. It’s likely your ideal home and your first home won’t be the same thing. You may need to start smaller, older and further away than you want to, to get your foot in the door.
With these two figures, the amount you can borrow, and the amount you need to spend, work out your deposit:
(Property cost + fees) – amount you can afford to borrow = deposit
Get your head around your money situation – track, budget, plan and set goals.
Track your spending for a month with an app you can use on the run. ASIC’s TrackMySpend can help you get a clear picture of your spending habits.
Use a budget planner to get you started on a smart budget that suits you and your lifestyle. Have a good look at your essential and non-essential costs. Prune any extras but leave yourself some wiggle room – you still need a life.
Decide how much your budget will let you save, and use a savings calculator to put a timeframe on your savings goal. You might need to repeat the process, go back to the budget and tighten your belt if the timeframe doesn’t suit your home owning goals.
Take a separate and simplify approach to saving.
Separate your savings from your everyday account by opening a high interest savings account so your money works hard for you.
Simplify the process by setting up an automatic withdrawal – set and forget so your savings grow without having to think about it, or miss the money building your deposit.
Take a minute to regularly review your progress by setting 6 monthly or annual goals and give yourself a little reward for reaching it.
Think carefully about your big expenses and apply some out of the box thinking.
Paying rent is a killer while you’re trying to save for a house deposit, so some people move back in with their parents while they save. Or take advantage of free or subsidised housing available through work.
Team up with some of your friends to share costs such as housing and transport – different times call for different thinking.
Saving for your first house is a challenge that’s well worth it, and we know you can do it. It’s OK if you need some help to figure out how to get there. You may find you become used to a lifestyle that includes saving, and that the simple (and free) things in life make you happy.
We’re ready to help with your savings and a plan to get you into your first home. Contact the QBANK team online or call 13 77 28.
No-one is immune from being scammed. You can’t always avoid being targeted by scammers who want to separate you from your money, but you can protect yourself by learning about scams, how they work, and what to do if it happens to you.
The Australian Government Guarantee, also known as the Financial Claims Scheme (FCS), provides protection for funds deposited in eligible financial institutions up to a limit of $250,000 for each account holder.
Following the decision by the Reserve Bank to reduce the official cash rate, QBANK will reduce interest rates on its variable rate home loan products for owner occupiers and investors by 0.15% per annum. Mortgage secured overdraft rates will also be reduced by 0.15% per annum.