Special New Years Resolution 3 Part Series: Buy My First Home
THE start of a new year brings so much promise. It is a time that many people choose to reflect on their previous year and think about what they want to achieve in the coming year. Some people think about it longer and harder than others, but most of us at least have a think about it.
A common goal amongst 20 and 30 year olds is home ownership. According to the Australian Bureau of Statistics (ABS) every year there are nearly around 100,000 first home buyers. Home ownership is a fantastic goal to have as it brings many benefits, including security and the ability to truly decorate & renovate the home the way you want it. Home ownership, based on historical data, also helps Australians build wealth.
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However, while it is great to start thinking about home ownership, you should be seeing this as a long term goal, not a one year goal. According to the 2016 Bankwest First Time Buyers Deposit Report, it takes on average 3.5 years to save a 20% deposit for a unit and 4.9 years to save a 20% deposit for a house*.
Everyone’s circumstances of course vary. Therefore, to help you with your New Year Resolution, we have created a special 3 part series to help you get your 2017 resolution started! Simply pick the parts relevant to your situation.
- Part 1: Save a home deposit – for those who want to start saving a deposit. See below.
- Part 2: Buying your first home – for those who have nearly finished saving a deposit and want to buy their first home this year.
- Part 3: Learn more about owning property – for anyone aspiring to buy their first home one-day (in 2017 or later).
Part 1: Save a home deposit
Is your new years resolution to either boost your savings or start saving for a deposit? As mentioned, it can take many years to save a deposit. But we all have to start somewhere.
If this is your goal here are some tips to help you kick start your 2017 new years resolution:
- Shop around for the best savings interest rate – It is probably the most common tip on the internet. Every bit counts! So when saving for a deposit you should make sure you have a good savings account that pay’s you optimal interest. When was the last time you checked your interest rate on your savings account versus alternative accounts available? To do a quick comparison now visit our FHBA Savers Hub.
- Consider creating a budget – Ok creating a budget is another common tip, you have got us there. But it is a common tip because it really makes a difference and allows you to achieve your saving goals sooner! If you don’t think you are disciplined enough to create and stick to a budget at least consider reviewing your luxury expenses and consider where you could drop back some expenses in 2017. To see how your savings and budget is going you can try our free FHBA DIY Budget Planner. It is very easy to use, go on, have a try! You can even download as many calculations in PDF as you want for free!
FHBA Coach’s specialise in providing mentorship and guidance to aspiring first home buyers across Australia. If you are feeling a little unsure about something or have any questions book in a complimentary phone chat with one of our friendly FHBA Coach’s. We are here to help you with your great Australian dream, every step of the way!
*Stastitics obtained from the BankWest 2016 First Time Buyer Deposit Report
