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Buying your first home  

 

Here’s some things to think about.


As you sit on the sofa  once again after a hard days work and type in the suburbs, car spaces and bedrooms you want on your detached dream home you start to frantically scroll through “auction guide” prices and think to yourself… “one day maybe we’ll be able to get that”… “wow look at this one”… responded by “that’s not in our budget”… it can leave you defeated.


But, here’s some ideas to gain ownership in the short term, so the dream can stay alive.


1. Your first home is not your forever home. So look at it from an investment perspective… no one in the history of planet earth  buys their first dream home. How does this home make growth?


2. You don’t have to live in the first one - the key to gaining wealth in property is being in the market “on the ladder  “ someone else can rent it off you. You don’t have to like it.


3. Use government incentives combined or in conjunction with lenders that allow you to enter the market with a smaller deposit  5%… LMI monthly… Stamp duty relief etc.


4. Don’t stretch your borrowing capacity on number 1 - you might want to… in which case I’ll shut up.  but if you choose a property cheaper than your MAX you’ll still have the capacity to save and also have the opportunity to buy again soon… leveraging all your borrowing power for an owner occupier is a sure way to spend the next 30 years paying a mortgage. Rather than paying it off in say 15 years.


5. Put some elbow grease into it or in other words, but the cheapest house on the best street…  if it needs work it will be cheaper… a bargain on a good street is a quick way to improve your position. Sort out the kitchen and bathroom first, the backyard and the bedrooms can wait…   


Speak to the professionals to set up your strategy. It doesn’t cost you anything only your time and a coffee  meeting or a phone call  but it’s important to understand your limits and also introduce opportunities you may not have thought of


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